U2U’s circulating market cap rose 1,581% QoQ to $13.7 million, driven by an 82% price increase and 823% growth in circulating supply from unlocks, listings, and reward programs.
New transactions surpassed 1 million, while total transactions increased 22% to 2.7 million in Q2 2025.
Transaction fees dropped 55% QoQ and average gas price fell 25%, while transaction success rate improved to 99%, showing that the network processed higher volumes at lower cost while maintaining reliability.
New contracts rose 83% QoQ to 429, while verified contracts increased 214% QoQ, highlighting a shift toward production-ready deployments.
U2U completed a Series A led by SSID with participation from Tether and AWS. The funding was accompanied by new ecosystem partnerships and validator expansion, supporting broader adoption and institutional alignment.
Primer
U2U Network is a Layer-1 (L1) blockchain platform designed for Decentralized Physical Infrastructure Networks (DePIN) and real-world applications. Launched in 2023, it combines Directed Acyclic Graph (DAG) architecture with Helios Consensus, which merges asynchronous Byzantine Fault Tolerance (aBFT) and Delegated Proof of Stake (DPoS). This design enables high throughput, low latency, and enhanced security across a modular network of customizable subnets.
The U2U Chain is fully EVM-compatible, allowing developers to port and scale Ethereum-based applications while benefiting from U2U’s performance and cost efficiency. A key product in its ecosystem is U2DPN, a decentralized VPN built on mobile-first subnets to expand access to secure internet service.
The project is led by industry veterans, including Co-Founder Luu Tran and CEO Chloe Phung. With its foundation in Vietnam’s blockchain ecosystem and a broader global focus, U2U seeks to bridge physical and digital systems to support scalable, secure, and user-owned infrastructure. For a full primer on U2U, refer to our Initiation of Coverage report.
The U2U network launched in 2023 on its Solaris mainnet, with the U2U token officially going live on Dec. 10, 2024. Ahead of the launch, U2U held its Public Sale on Fjord Foundry on Dec. 2, 2024, which sold out in 40 minutes. Initial distribution also included the project’s first airdrop for early supporters, targeting Planet NFT collectors, Galxe campaign participants, and DePIN Alliance app users.
Market Cap
U2U’s circulating market cap increased 1,581% QoQ, from $817,300 in Q1 2025 to $13.7 million in Q2. This expansion was driven by both price appreciation and a sharp increase in circulating supply. The token price rose 82.2% QoQ, from $0.0049 to $0.0090, supported by stronger demand amid ecosystem launches, a Series A fundraise, and growing exchange activity. Circulating supply grew 823.2% QoQ, from 165.3 million to 1.52 billion tokens. This release was likely tied to token unlocks, exchange listings, and the introduction of staking and ecosystem reward programs (e.g., Capital Code Challenge, Ambassador Program), which collectively brought more tokens into circulation.
Network Activity
Network-level metrics in Q2 2025 reflected a mixed but maturing ecosystem. U2U appears to be shifting from a phase of rapid onboarding to one of deeper engagement. While account growth stabilized, developer activity and contract quality accelerated, indicating that the network is evolving toward more application-driven usage.
Accounts
New accounts is a measure of the number of unique wallets created on Solaris mainnet during a given period. They represent the entry point for users into the ecosystem, as each new wallet enables participation in staking, DeFi, NFTs, or DePIN applications. In Q2 2025, total new accounts remained steady at 23,200 (+0.6% QoQ) compared to 23,000 in Q1. This follows the surge in Q4 2024, when accounts spiked to 18,859 on Dec. 10, 2024, coinciding with the U2U token launch. Since then, growth has leveled off, suggesting that early onboarding momentum tied to token distribution has cooled.
At the same time, average daily active accounts declined 24.7% QoQ to 785, indicating that while overall transaction volume increased, activity may be consolidating among fewer but more engaged participants. Even so, cumulative accounts reached 131.4k (+27.9% QoQ), demonstrating that the number of accounts continues to expand despite slower sequential growth in new sign-ups.
Contracts
Contracts on U2U refer to smart contracts deployed on Solaris mainnet, which enable decentralized applications across DeFi, staking, NFTs, and DePIN use cases. Verified contracts, which undergo additional checks or audits, signal higher readiness for production deployment.
In Q2 2025, developer activity strengthened after a slower Q1. Total new contracts rose 83.3% QoQ to 429, while verified contracts grew 213.5% QoQ to 163. The increasing share of verified contracts suggests greater emphasis on production-ready and auditable applications, pointing to improving development quality and more sustainable growth in the ecosystem.
System Performance
Transactions
Transactions on U2U measure the number of interactions recorded onchain, including token transfers, contract executions, and dApp activity. In Q2 2025, new transactions surpassed 1 million (+113% QoQ) compared to 473,000 in Q1. Total transactions all-time reached 2.7 million (+21.6% QoQ). Growth was supported by ecosystem launches such as GroFi DEX, a Crossmint integration, and staking applications, which lowered entry barriers and broadened use cases. Expanded activity in DeFi and early DePIN deployments, such as Staex IoT and Nubila weather stations, also contributed to increased transaction levels.
At the same time, total daily transaction fees (U2U) fell 55% QoQ from 295 to 132, while the transaction success rate improved from 98% to 99%. This combination of higher volume, lower costs, and strong reliability suggests the Solaris mainnet and subnet framework scaled effectively under heavier loads while keeping the network accessible to users.
Blocks & Gas
Falling transaction costs were supported by efficiency gains at the protocol level. The average gas price declined 25.4% QoQ to 1.05 Gwei, consistent with the drop in aggregate fees. The average block size rose 8.5% QoQ to 636 KB, while total gas used climbed 26.5% QoQ to 790.9 billion Gwei, reflecting heavier transaction and contract execution. Despite this, the gas limit per block remained unchanged, meaning scalability was achieved within existing parameters rather than through higher ceilings. By contrast, native token transfers were flat at 40.3k (+1.5% QoQ), showing that growth was driven more by contract-based applications than by simple peer-to-peer transfers.
Underlying infrastructure remained stable as activity increased. Block production reached 4.5 million (+6.9% QoQ) in Q2 2025, consistent with higher throughput. Average block times held steady at 1.68 seconds, confirming reliable finality under load. Together with improvements in gas efficiency and transaction success rate, these metrics show that U2U was able to support rising activity with both scalability and affordability.
Qualitative Analysis
Partnerships and Developments
BrownFi Investment (April 2025): U2U Foundation invested in BrownFi, a next-generation DEX protocol combining CLMM-level capital efficiency with a simplified user experience. Features include oracle-based pricing to prevent out-of-range liquidity risks, resistance to arbitrage, and simplified LP management. BrownFi will serve as U2U’s core DeFi layer, providing liquidity infrastructure for dApps and subnets.
Crossmint Integration (May 2025): U2U partnered with Crossmint to integrate token minting, embedded custodial wallets, fiat and stablecoin payments, compliance tools, and AI agent infrastructure. The collaboration is expected to reduce onboarding friction and increase wallet creation and recurring activity.
Staex Partnership (May–July 2025): Staex, a Web3 Internet of Things (IoT) platform, integrated with U2U to connect 1,000+ devices across mobility, energy, and drones. Early deployments included German bus fleets equipped with smart modules to stream GPS, CO₂, and telemetry data onchain, validating machine-data monetization models.
Nubila Collaboration (June 2025): U2U became the exclusive ecosystem partner for Nubila’s Marco weather stations in Vietnam, anchoring AI-enhanced, ESG-focused weather data onchain for agriculture, insurance, and telecom applications.
Basal Pay Partnership (July 2025): U2U integrated with Basal Pay, a crypto QR wallet enabling travelers and expatriates in Southeast Asia to make local merchant payments without bank accounts.
DeFi Connect Credit (July 2025): U2U onboarded DeFi Connect Credit, a protocol bridging real-world assets with DeFi through fractional ownership, cross-chain swaps, and AI-powered automation. Already listed on MEXC, DCC deployed on U2U to provide tokenized RWA lending and adaptive trading.
Funding and Institutional Backing
Institutional MOUs (August 2025): SSI, Vietnam’s largest securities company and parent of SSID (its digital arm and U2U’s strategic partner), signed a memorandum of understanding (MOU) with VanEck to advance Vietnam’s digital asset markets. In parallel, SSI also signed an MOU with Da Nang City to support blockchain adoption in areas such as financial markets and e-government. While U2U was not a direct signatory, these agreements underscore the institutional environment in which the project is positioned.
Series A Funding (June 2025): SSID, the tech arm of SSI Securities (Vietnam’s largest financial institution), led U2U’s Series A round, joined by Tether and AWS. The deal positioned U2U as a cornerstone of Vietnam’s national blockchain strategy. A signing ceremony in Hanoi on June 19 was attended by 20+ national and international media outlets, including VTV1, Nhân Dân, and DealStreetAsia.
Leadership Transition (June 2025): Alongside the Series A milestone, U2U appointed Chloe Phung as CEO. A fintech and Web3 entrepreneur with prior experience at Infina, Entobel, and as co-founder of Bvnex, Chloe has been central to fundraising, securing exchange listings, and advancing institutional partnerships. Under her leadership, U2U positioned itself as “Make in Vietnam” digital infrastructure.
Cicada $1M Grant Program (August 2025): In partnership with Cicada, a global market maker, U2U launched a $1M grant program for projects in DePIN, DeFi, AI x Crypto, and GameFi. Selected projects gained access not only to funding but also Cicada’s liquidity provisioning, CEX listing support, and advisory services.
Global Validator Expansion (September 2025): Leading VCs including Chain Capital (Singapore), Crypto Assets Japan, Alpha Sigma Capital (USA), and Blockhive Capital (HK) joined U2U as validators. This strengthened network security, expanded liquidity, and demonstrated institutional alignment with the network’s long-term growth.
Events and Ecosystem Growth
Capital Code Challenge (June 16–17, 2025): Distributed 100,000 U2U tokens (at $0.008 on June 17) through a gamified event ahead of the Series A announcement.
GM Vietnam 2025 (August 1–2, 2025): U2U was a Platinum Sponsor of Southeast Asia’s largest blockchain event. CEO Chloe Phung spoke on a scalability panel, while the team co-hosted the official after party with 1,000+ attendees.
VietBUIDL Hackathon (August–October 2025): Co-hosted with SSID and powered by AWS, featuring a $4M prize pool; the largest in the region. Tracks included DePIN, AI, and User Apps, attracting 193+ registered projects by early September. Prizes included $2M from SSID, $1M from Cicada, and $1M+ from U2U.
Community Campaigns (August 2025): The Ambassador Program launched with an 800K U2U reward pool. Other initiatives included the Alliance Bull Run with Qualoo, WatchX, Cluster Protocol, Arkreen, and Stratos (Aug 27), the Words War Telegram challenge (Aug 20), and Jackpot Frenzy with PinGo (Aug 12).
Network Upgrades and Infrastructure
DEX Launch (May 2025): GroFi DEX, the first native DEX on U2U, launched to expand capital efficiency and trading infrastructure.
Staking Platform (July 6 2025): U2U launched its staking portal (staking.u2u.xyz), enabling users to delegate tokens with flexible lock-ups and APR ranging from 1–22%.
Ecosystem and Recognition
Ecosystem Scale: By July 2025, U2U supported 44 DePIN projects, with integrations across IoT, weather data, mobility, energy, and agriculture.
Media and Recognition: U2U was covered by DealStreetAsia and national outlets during its Series A.
Closing Summary
In Q2 2025, U2U Network recorded 1 million transactions (+113% QoQ) and reached 2.7 million in all-time transactions (+22% QoQ), while transaction success rates improved to 99%. Average daily transaction fees fell 55% QoQ to 132 U2U, supported by a 25% drop in the average gas price, indicating efficiency gains as activity expanded.
Average daily new accounts held steady at 23.2k (+0.6% QoQ), while average daily active accounts declined 24.7% to 785, suggesting usage consolidated among fewer participants. Contract deployments rebounded, with 429 new contracts (+83% QoQ) and 163 verified contracts (+214% QoQ) in the quarter, reflecting stronger developer engagement and a focus on production-ready applications.
On the financial side, U2U’s circulating market cap rose 1,581% QoQ to $13.7M, driven by a 82% price increase and an 823% expansion in supply from unlocks, listings, and reward programs. In Q2 2025, U2U raised funding through a Series A from SSID, Tether, and AWS, partnerships with Crossmint, Staex, Nubila, Basal Pay, and DeFi Connect Credit, and community programs such as the $4M VietBUIDL Hackathon. Global VCs including Chain Capital, Alpha Sigma Capital, Crypto Assets Japan, and Blockhive also joined as validators, reinforcing institutional alignment.
Overall, Q2 2025 reflected a shift toward application-driven activity and institutional support, with network infrastructure demonstrating scalability through higher throughput, lower costs, and improved reliability.
This report was commissioned by U2U. All content was produced independently by the author(s) and does not necessarily reflect the opinions of Messari, Inc. or the organization that requested the report. The commissioning organization may have input on the content of the report, but Messari maintains editorial control over the final report to retain data accuracy and objectivity. Author(s) may hold cryptocurrencies named in this report. This report is meant for informational purposes only. It is not meant to serve as investment advice. You should conduct your own research and consult an independent financial, tax, or legal advisor before making any investment decisions. Past performance of any asset is not indicative of future results. Please see our Terms of Service for more information.
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Armita is a protocol researcher with a robust background in technology and blockchain. Before her role at Messari, she distinguished herself as a tech entrepreneur, executive, and advisor for various blockchain startups. Armita holds two master's degrees, one in Computer Engineering and another in Business Management, as well as a double major undergraduate degree in Physics and Pure Mathematics.
Armita is a protocol researcher with a robust background in technology and blockchain. Before her role at Messari, she distinguished herself as a tech entrepreneur, executive, and advisor for various blockchain startups. Armita holds two master's degrees, one in Computer Engineering and another in Business Management, as well as a double major undergraduate degree in Physics and Pure Mathematics.
