SUI has been in the spotlight recently and its development has reached new heights.
At the close of the week, SUI reached an all-time high of $2.30, surpassing top altcoins such as Polkadot (DOT) and entering the top 15 cryptocurrencies. This performance has given SUI supporters confidence that it has the potential to become a major competitor in the market.
SUI’s price surge has also attracted attention in the DeFi space, with the total locked value (TVL) reaching $1 billion, surpassing AVAX and MATIC. SUI’s growing position in the DeFi market Forecasts show that SUI may continue to rise in the next three months, with an expected increase of up to 240%.
According to data from Coingecko, SUI is currently trading at $2.04 and although it is down 4.3% in the past 24 hours, it is up 8.7% in the past seven days.
Valuation doubts emerge
The rapid rise of SUI has excited the market, but it has also raised some doubts. Some analysts have begun to question whether SUI's current market value is consistent with its actual fundamentals, and believe that its valuation may be too high.
The rise in SUI’s value has sparked a lively discussion as people try to assess its market value and identify potential problems, a phenomenon that is not uncommon among the rapidly expanding cryptocurrencies and tokens, but which often makes potential buyers uneasy.
Additionally, insider selling is a concern. During the recent rise in token prices, large transactions from the foundation wallet raised questions about price sustainability.
If funds are withdrawn during a period of surging prices, it may indicate that insiders are not optimistic about the market outlook, making investors doubtful about long-term investment.
Fully Diluted Valuation Comparison
SUI's current situation is more complicated, mainly because its fully diluted valuation is $1.2 billion, while Solana's valuation is as high as $4.7 billion.
Some experts in the market believe that Solana’s pricing may be inaccurate, as its fully diluted valuation is less than one-third of Ethereum’s. This also makes some people feel that SUI’s current valuation may be a bit high.
This comparison also raises concerns about possible mispricing in the market, so investors need to carefully weigh the pros and cons before participating. Currently, the cryptocurrency market is highly competitive, and understanding the valuation of different projects relative to other tokens can help people better assess the value of each token.
What's next for SUI?
Despite some concerns, the near-term prospects for SUI are optimistic. Judging from the price trend, the currency is expected to rise, and forecasts show that the market size will expand significantly in a few months. In the next three months, the price of SUI is expected to rise by 244%, which has attracted many investors with high expectations.
However, investors are advised to be cautious. Considering the large amount of insider trading and concerns about valuation, the future situation may not be as optimistic as imagined. Close attention to market dynamics and technical analysis will help to deal with the risks that may arise from the rapid rise of SUI.
