The Walrus protocol, which has been the hottest topic in the Sui ecosystem recently, is often called the "Filecoin killer" by many. I spent a month tracking data to understand what this thing is really about, and the conclusion is a bit harsh—it’s more like a "storage assassin."

First, let's talk about the cost, which is the biggest selling point of Walrus. $20 per year to store 1TB, indeed 80% cheaper than Filecoin, sounds great. But what’s the hidden price? The level of decentralization drops sharply. Almost all Walrus nodes are participants from the Sui ecosystem. Currently, there are only about 200 active nodes, while Filecoin already has over 3,000. I tested myself: after uploading a 1GB file, three nodes went offline simultaneously, and the data couldn’t be read at all. It took two hours to recover. Such reliability? Forget about storing critical data with it.

Next, look at data distribution. About 70% of Walrus’s storage demand comes from NFT projects within the Sui ecosystem storing images. Honestly, these projects are mostly internal hype within the circle, with no real users. I checked the storage growth over the past month—only 2TB added recently, while Filecoin’s daily increase is much higher.

The most outrageous part is the token mechanism. WAL has a circulating supply of only 1.25 billion, which seems small. But 43% of the community reserves are locked until 2033—obviously, the project team holds the "unlimited printing press." Several Sui users I know received airdrops and immediately sold them. Who can hold for 8 years?

To put it simply, Walrus is just a tool within the Sui ecosystem, not a necessary Web3 storage solution. Once the hype around Sui dies down, it’s very likely to become the next "air project."