Walrus's role in the Sui ecosystem is quite interesting—being a native decentralized storage solution, its relationship with Sui is so close that they are almost integrated. This deep binding gives Walrus many competitive advantages, but honestly, it also raises some concerns.

Let's start with the positive side. Sui's high TPS performance combined with Move smart contract security design allows Walrus to handle the full lifecycle management of on-chain and off-chain data. Developers can directly interact with storage data through smart contracts, enabling new scenarios such as decentralized frontend hosting and AI model training data storage. These are features that traditional storage solutions cannot provide.

The DeFi ecosystem is also booming—by Q1 2025, Sui's active users increased by 200%, and stablecoin supply grew by 75%. What does this mean? A large influx of Blob data storage demand is driving up the usage value of the WAL token. Plus, with Grayscale and Bitwise submitting SUI spot ETF applications, traditional institutional funds are starting to flow into the Sui ecosystem. As a staking protocol occupying 90% of the market share within the ecosystem, Walrus will naturally benefit as well.

But risks must also be clearly understood. If the SUI ETF application is blocked or the Sui ecosystem's popularity declines, Walrus's storage demand will drop sharply. This is not just a hypothesis but an inherent vulnerability of this symbiotic model—the ceiling for your growth is the ceiling of the ecosystem.