Sui, a high-performance Layer 1 public chain developed by Mysten Labs and using the Move language, has had a very strong currency price performance recently. In the 46 days since the low on August 5, the increase has exceeded 200%, which can be said to be the best performance among the top 50 coins by market capitalization. Yesterday, the research institution K33 Research launched a report, which predicted that Sui will soon become the most powerful challenger to Solana.
With multiple positive blessings, institutions named Sui to challenge Solana’s status
In the past, Solana was regarded as an Ethereum killer. Although Solana has not yet succeeded, it has become the most widely used Layer 1 outside of Ethereum. Recently, a research institution has named Sui to challenge Solana’s top Layer 1 throne in the near future. In a report on September 18, K33 Research researcher David Zimmerman pointed out that Sui’s design architecture, performance, and console version are the keys to making it a top Layer 1.
“Solana has often been in the spotlight in the Layer 1 wars, and while SOL/ETH has gained 6% since opening in August, SUI/SOL has gained 115% in the same period,” he said.
However, he also admitted that the recent outperformance of Sui’s currency price may be attributed to widespread mispricing, but he also said that Sui has enough positive factors to support the rise in its currency price. On September 17, Mysten Labs and stablecoin issuer Circle announced at Token2049 in Singapore that they would issue USDC on Sui. In addition, Grayscale also issued the Sui Trust Fund in August, and various benefits have also provided impetus for the development of Sui.
(Grayscale Article Marketing Sui Fund: The next-generation blockchain challenging Ethereum’s dominance, with the lowest TVL/market capitalization ratio)
Sui's real TPS loses to Solana, analysts still praise its development technology
David Zimmerman said that Sui is technically qualified to challenge Solana. In terms of TPS (Transaction Per Second. The number of transactions that can be processed per second in the blockchain system), Sui's theoretical maximum is 297,000 transactions per second, while Solana The theoretical maximum is 65,000 transactions.
Solana and Sui Theory TPS. Source: K33 Research
However, the theoretical maximum value often lags behind the actual situation. According to CoinGecko data, Solana’s highest “real” TPS is close to 3,000, while Sui’s highest TPS reached a maximum value of 854 in July 2023.
"Sui has created impressive technology. However, we have yet to see it surpass Solana in real-world conditions and in metrics such as average daily TPS," said David Zimmerman.
Speculators bet big, could console SuiPlay0x1 replicate the Solana Saga effect?
Another bullish headline for Sui is a handheld console called SuiPlay0x1, which will be developed and published by Mysten Labs, the company behind Sui. The console is expected to ship next year and will come with NFTs, potentially unlocking airdrops from the ecosystem for users.
David Zimmerman compared Sui's console to Solana's first mobile device, the Saga, which offered users airdrop rewards that far exceeded the price of the device itself.
Sui is still a VC coin, and token unlocking may be key
But isn't there anything standing in the way of Sui challenging Solana? David Zimmerman pointed out that token supply is Sui’s biggest problem, although those at the Sui Foundation see this as a positive.
(Sui Foundation member and former Goldman Sachs executive rectifies VC currency: low-circulation tokens will be the best choice in the next 18 months)
He noted that Sui launched in May 2023, when low-volume/high-FDV tokens were common. With only 27% of Sui’s total token supply currently in circulation, current investors may be at risk of a significant sell-off when the token is unlocked in the future. By comparison, 80% of the total Solana token supply is currently in circulation.
While Sui has a chance to defeat Solana in the so-called Layer 1 war, Ethereum won’t be in danger anytime soon. Although the market still regards other Layer 1s as Ethereum killers, David Zimmerman said that after the Ethereum spot ETF was listed in the United States, Ethereum is no longer comparable to other altcoins.
This article SUI currency price tripled from the bottom! Agency report: Sui is Solana’s most powerful competitor appeared first on Chain News ABMedia.
