Market Performance and Overview
SUI led the cryptocurrency market yesterday with a 20% increase, outperforming most digital assets and attracting widespread attention. According to Binance data, SUI prices have soared more than 44% from a low of $0.74 on September 2 to an intraday high of $1.07 on September 12. In contrast, the total market value of the entire crypto market has only risen by less than 2%, and the current total market value is $2.14 trillion. Such a sharp increase has sparked discussions among investors and analysts: What is the driving force behind SUI's rise? Can its rise be sustained?
About Sui
SUI is a permissionless Layer-1 public chain based on the Move programming language and using the Delegated Proof of Stake (DPoS) mechanism. Its core design is to provide horizontal scalability, which can support large-scale application development at unparalleled speed and low cost to meet the needs of billions of Web3 users in the future.
SUI's native token $SUI has multiple use cases on the network, including paying network fees, node staking, native liquidity provision, and governance functions.
According to DeFiLlama data, SUI is one of the top 30 Layer-1 blockchains, with a total locked value (TVL) of more than $714 million on its network to date. In the past month alone, SUI's TVL has grown by 110%, indicating a sharp increase in user engagement and confidence in the network.
Key protocols driving SUI TVL growth include:
Cetus: Cetus is a Move-based decentralized exchange (DEX) and centralized liquidity protocol focusing on Aptos and SUI. Its TVL reached $121 million, up 22% in the past 30 days.
Navi Protocol: Navi is a native one-stop liquidity protocol on SUI, with a current TVL of $261 million. The protocol allows users to participate in the SUI ecosystem as liquidity providers or borrowers. Liquidity providers earn passive income by providing assets to the market, while borrowers can flexibly obtain loans to meet their funding needs.
Scallop Lend: Scallop is a money market protocol in the SUI ecosystem with a TVL of $117.75 million. It is committed to building a dynamic money market that emphasizes institutional quality, security, and composability, and provides high-interest lending, low-fee lending, AMM, and asset management tools, attracting a large number of professional traders to participate.
The growth of these protocols reflects users’ high trust in the SUI ecosystem, and increased TVL generally means increased user activity on the network, which also brings higher demand for SUI tokens, further pushing up its price.
Grayscale SUI Trust and Institutional Inflows
On September 12, 2024, Grayscale announced the launch of the Grayscale SUI Trust, which is officially open to qualified investors. This move provides institutional investors with a channel to invest in SUI and further increases market confidence in SUI. Grayscale pointed out that the design goal of the SUI Trust is to track the market price of the SUI token, minus related fees and expenses. Similar to Grayscale's other single-asset investment trusts, the SUI Trust focuses only on the native tokens of the SUI layer 1 blockchain.
This news indicates that institutional funds are pouring into the SUI market at an accelerated pace and provides strong support for the long-term growth of SUI.
Binance Coin-margined Perpetual Swaps Launched
In addition to Grayscale Trust, another major development of SUI is that Binance will launch SUI coin-margined perpetual contracts on September 18, 2024, with a maximum leverage of up to 20 times. Coin-margined contracts are advanced trading tools that provide a more complex way to participate in the market, and not all crypto assets are eligible for this treatment. According to Binance data, only 17 of the 30 currencies with a current market value higher than SUI have launched coin-margined contracts. SUI's support for such contracts further consolidates its market position and enhances trading depth.
Market Analysis and Price Forecast
Cryptocurrency market analysts are generally optimistic about the prospects of SUI. Anonymous analyst Cryptorphic pointed out in his latest analysis on the X platform that SUI is currently close to the key resistance level of $1.025. If this level is broken, it will release huge upside potential. The upside target is expected to reach the upper boundary of the ascending channel, which is around $2.58.
Another analyst, Bmoon, gave a more optimistic forecast, believing that the SUI price could reach $3.60 in the fourth quarter of 2024. He said on social media that the SUI network performed better than expected, and the continued strong development of the DeFi ecosystem provided strong support for the price.
Technology and Ecosystem Progress
In addition to market trading activities, SUI's technological upgrades are also a key factor in driving the development of its ecosystem. SUI's recent Mysticeti upgrade shortened the transaction completion time to about 0.6 seconds, greatly improving the efficiency of the network. In addition, USDC plans to log on to the SUI network next week, which will further enhance its potential in stablecoin transactions and DeFi applications.
It is worth noting that there are market rumors that some Asian funds are buying large amounts of SUI through over-the-counter (OTC) transactions. These positive news provide more basis for SUI's continued growth.
SUI's recent strong gains are due to the rapid expansion of its ecosystem, technological advancement, and the inflow of institutional funds. With the booming development of DeFi protocols, technological upgrades, and increased market confidence, SUI has the conditions for further gains. However, despite the optimistic outlook, future gains will still depend on the overall environment of the global cryptocurrency market and the continued development of the SUI ecosystem. Investors need to pay close attention to market trends to assess the long-term potential of SUI.
