Walrus ($WAL) - From Storage Protocol to the "Warhorse" of the Sui Ecosystem

The New Wave in Decentralized Storage

Today, (March 27, 2025), Walrus – a storage protocol built on the Sui blockchain by Mysten Labs – officially launched its mainnet and released its native token $WAL. This marks a significant milestone for the Sui ecosystem, especially as decentralized storage technology becomes an urgent necessity for Web3.

Competitive Advantage: When Efficiency Takes the Lead

“Red Stuff” Encryption Technology – A Breakthrough Step

Walrus employs proprietary (erasure coding) algorithms with a replication factor of only 4x-5x, significantly reducing storage costs compared to traditional protocols. To understand better, competing storage projects like Filecoin require higher replication factors, leading to soaring operational costs. According to Mysten Labs, Walrus’s storage prices could be up to 100 times cheaper, offering a highly attractive advantage for AI datasets, NFT game assets, and large-scale decentralized application developers.

Deep Integration with the Sui Ecosystem – A Strategic Edge

Walrus is not an independent protocol but an integral part of Sui. When users store data blobs on Walrus, a metadata object is created on the Sui blockchain, consuming SUI as transaction fees. If Walrus achieves an annual storage target of 1 Exabyte, it is estimated to consume around 240 million SUI (equivalent to 15% of the current circulating supply). This creates deflationary pressure on SUI, indirectly boosting the value of the ecosystem and $WAL.

Cross-Chain Vision – Not Limited to Sui

Although closely tied to Sui, Walrus is designed to be compatible with other public blockchains such as Ethereum and Solana. This cross-chain nature allows Walrus to position itself as a global storage infrastructure layer for Web3, opening up a much larger market than single-ecosystem projects.

Market Support Factors

Funding Support from Leading Institutions

Walrus raised $140 million through a private funding round before launching its mainnet. Investors include Standard Crypto, Andreessen Horowitz (a16z) crypto, Electric Capital, and Franklin Templeton – highly reputable names in the industry. The involvement of these investors not only demonstrates confidence in the technical potential but also provides strong backing for initial market capitalization.

Segmented Airdrop Strategy

Walrus distributed 4% of the total $WAL supply ($WAL) to approximately 120,000 Sui addresses via testnet activities. The next plan includes distributing an additional 6% as community rewards, creating a cycle to continuously incentivize community participation.

Valuation Comparison and Growth Potential

On OTC markets (via platforms like PinataBot), $WAL the token was traded at around $0.3 before official launch. However, current data shows a price adjustment, with FDV now at $707 million (based on a $0.14 price and 1.25 billion tokens in circulation). Compared to Filecoin (with a market cap of ~4 billion USD) and Arweave (with a market cap of ~1.5 billion USD), Walrus still has room to grow.

If the mainnet performs as expected, $WAL it could challenge an FDV of 2-3 billion USD in the short term, even reaching current competitors.

Short-Term Growth Drivers

Excitement from Mainnet Launch Event

Today marks the official token creation event (TGE), a key milestone to attract investor attention. Coupled with the airdrop, $WAL there is potential for significant price appreciation during the initial listing phase.

Halo Effect from the Sui Ecosystem

Recently, Sui has garnered attention from Canary Capital through an ETF application, along with partnerships with World Liberty Financial. The overall optimistic sentiment of the ecosystem will directly benefit $WAL – a “star” project.

Lessons from Predecessor Tokens

DeepBook ($DEEP) is a shining example: from a FDV of $200 million to a peak of $3.5 billion. The story of $WAL – combining storage, AI, and on-chain gaming applications – opens a broader imagination space, with potential 5-10x growth in early stages.

Long-Term Power: Genuine Demand Will Shape the Future

Walrus is not just an ordinary storage protocol but aims to become the backbone of Web3 data infrastructure. As AI and blockchain gaming explode, the practical adoption rate of storage services will be the key factor in long-term valuation.

If it achieves the goal of 1EB annual storage, its economic model through staking and governance will be reinforced, laying a sustainable foundation for long-term growth.

Risks to Watch Out For

• Competition from Pioneers: Filecoin and Arweave have built mature ecosystems with large communities. Walrus needs strategic market entry to carve out its territory.

• Selling Pressure from Airdrop: If the initial 4% airdrop $WAL 20 million tokens( is sold in a concentrated manner, it could exert downward pressure on the price.

• Technical Challenges: Any performance issues after mainnet launch or poor user experience could undermine confidence.

Overall Outlook and Investment Strategy

Based on the analysis above, the outlook for )is quite positive. Driven by the mainnet launch and the momentum of the Sui ecosystem, $WAL it could reach $0.8-1.5 $WAL FDV of 4-7.5 billion USD( within 1-2 weeks after listing, showing a potential 5-10x growth compared to current prices.

Long-term, if Walrus meets its technical commitments and achieves widespread adoption, the price )could surpass $2, challenging Filecoin’s position in decentralized storage.

For investors: Monitor initial trends after TGE. If the price drops below $0.2, consider buying; if it exceeds $1, be cautious of short-term correction risks. With a recent 3.41% decrease in 24 hours, this could be an accumulation opportunity for those confident in long-term potential.

For ecosystem participants: Continue tracking performance data from Walrus’s mainnet $WAL storage volume, node count, utilization rate(, and upcoming airdrop opportunities to best capture value.

Walrus’s story is just beginning. This “mammoth” has the potential to become the next dark horse of the Sui ecosystem – not only in the short-term market but also as a long-term Web3 data infrastructure backbone.