Donut Labs Funding Signals Sui’s Growing AI-DeFi Dominance

The convergence of artificial intelligence and decentralized finance continues to reshape blockchain infrastructure. Donut Labs recently secured $22 million in combined pre-seed and seed funding to build an AI-powered crypto trading browser. The funding round attracted major investors including BITKRAFT, Makers Fund, HSG, Sky9 Capital, Altos Ventures, and Hack VC, with additional backing from leaders across Solana, Sui, and Monad ecosystems. This milestone reinforces the Sui blockchain’s emerging position as a hub for AI-driven DeFi innovation.

AI-Powered Trading Browser Transforms DeFi Access

Donut Browser embeds autonomous trading agents directly into the browsing experience, analyzing markets, calculating risk, and automatically executing on-chain trades. CEO Chris Zhu explained that the browser concept emerged after his team’s TikTok-based application faced an unexpected shutdown, leading them to reimagine financial interfaces for the AI era. The platform addresses a critical gap in decentralized trading infrastructure.

DeFi derivatives recently surpassed $1 trillion in monthly trading volume. This surge creates demand for sophisticated tools which process information faster than human traders. Donut Browser features multi-model orchestration, coordinating multiple DeFi agents fine-tuned for liquidity routing, planning, and execution. The system includes real-time feedback mechanisms that allow traders to continuously analyze outcomes and refine strategies.

The browser supports Chrome extensions, web applications, and mobile platforms. Since announcing the funding round, Donut has attracted 160,000 users to its waitlist. This early traction demonstrates growing market appetite for AI-integrated trading solutions.

Sui Ecosystem Tokens Experience Significant Value Appreciation

Beyond infrastructure funding, Sui ecosystem tokens AIA and MMT have experienced substantial price increases, with AIA surging 122.79% to reach a market capitalization exceeding $249 million. MMT, the native token of Momentum, a leading DEX on Sui, rose to $0.7602 with a market cap of $155 million. The simultaneous appreciation suggests heightened market attention toward AI-finance narratives.

DeAgentAI, which issues the AIA token, provides AI agent infrastructure for autonomous operations across blockchain networks. The project raised $11 million across two funding rounds from investors including Momentum, Valkyrie Fund, Cointelegraph, Web3.com Ventures, and Vertex Ventures. DeAgentAI’s framework addresses identity verification, operational continuity, and decentralized consensus for AI agents.

The platform has achieved over 401,000 daily active users, 17 million total users, and 192 million on-chain transactions across Sui, BNB Chain, and opBNB. AlphaX, DeAgentAI’s crypto prediction engine, reportedly maintains over 70% accuracy in forecasting price trends. This product adoption demonstrates practical applications for AI in trading contexts.

Momentum DEX Strengthens Sui DeFi Foundation

Momentum recently crossed $500 million in Total Value Locked on the Sui blockchain. The protocol raised funds at a $100 million valuation, led by OKX Ventures, with participation from Coinbase Ventures and Circle. Momentum employs a ve(3,3) tokenomics model that aligns incentives between liquidity providers, traders, and protocols.

DeAgentAI represents the only external investment from Momentum. This strategic partnership positions both projects to explore AI-powered DeFi solutions collaboratively. The relationship between infrastructure providers and application layers strengthens ecosystem coherence.

Momentum secured strategic funding for DeAgentAI, described as the largest AI infrastructure initiative on Sui. The partnership also formalized cross-chain expansion through integration with Wormhole and OKX Wallet, making Momentum the first DEX to support Native Token Transfer-enabled assets. These technical integrations facilitate multi-chain liquidity flows.

AI-Fi Narrative Gains Market Momentum

The convergence of artificial intelligence with decentralized finance represents a significant shift in blockchain value propositions. Traditional DeFi protocols optimize capital efficiency through algorithmic mechanisms. AI integration adds adaptive learning capabilities that respond to real time market conditions.

Decentralized trading faces structural challenges, including uneven information quality, sophisticated market makers dominating retail flow, and ad-hoc trading patterns that limit profitability. AI agents can process vast data streams, identify patterns across multiple markets, and execute strategies with minimal latency. These capabilities address inherent inefficiencies in decentralized markets.

Sui’s technical architecture effectively supports this integration. The blockchain’s object-centric data model and Move programming language provide security primitives suitable for high-frequency operations. Sui Bridge launched on mainnet, offering native bridging secured by Sui validators for assets between Sui and Ethereum. This interoperability expands liquidity access for AI-driven applications.

Infrastructure Development Signals Ecosystem Maturity

The concentration of AI-DeFi projects on Sui reflects deliberate ecosystem development. Major financial institutions, including Franklin Templeton, partnered with Sui to support ecosystem builders and deploy blockchain solutions. Grayscale Investments launched the Grayscale SUI Trust, offering accredited investors exposure to Sui’s growth. Institutional participation validates the blockchain’s technical capabilities and governance structure.

Sui began 2024 without native stablecoins but rapidly integrated multiple options, including USDY. Stablecoin availability provides the liquidity foundation necessary for sophisticated trading strategies. The speed of this integration demonstrates ecosystem responsiveness to market demands.

Developer activity also indicates maturity. Projects building on Sui access comprehensive tooling, documentation, and support structures. This infrastructure reduces friction for teams launching complex applications like autonomous trading systems or AI agent frameworks.

Conclusion

AI integration in DeFi represents more than technological novelty. The sector addresses fundamental inefficiencies in decentralized markets while creating new opportunities for traders and liquidity providers. Donut Labs’ substantial funding round and the appreciation of Sui ecosystem tokens like AIA and MMT, indicates growing investor confidence in AI-finance narratives. Sui’s technical foundation supports the computational demands of AI agents while maintaining the security and decentralization principles central to blockchain value propositions.