Sui has been everywhere lately. And as always, in the crypto world, you can get caught by the hype quickly. Therefore, cutting through the noise and assessing what's behind the hype is essential. Spoiler: In terms of Sui, the hype has some solid fundamentals.
Let’s break down the key factors driving its momentum.
About, Tokenomics and Market Position
Sui is a high-performance blockchain designed for speed and scalability, making it ideal for building Web3 applications. Its goal is to offer developers and users a seamless experience with fast transactions and low costs.
Market Cap: According to CoinMarketCap, SUI has a $9.55 billion market cap, making it the 14th largest project.
Daily Volume: Market activity is hot, with $2.02 billion in daily trading.
Token Supply: Only 28.5% of SUI’s total 10 billion tokens are in circulation, with a substantial portion (52.2%) locked up until after 2030. This cautious release strategy helps curb inflation, providing stability and long-term potential.
Next Token Unlock: On December 3, 2024, an additional 81.91 million SUI tokens will be released, potentially impacting supply dynamics.
Community Growth & Social Reach
Sui's social reach and community have grown steadily over the last months.
Twitter Growth: SUI’s Twitter (@SuiNetwork) recently hit 828,268 followers, adding 64,066 new followers in the last month alone.
Social Mentions: Between July and today, the number of social mentions has grown from a daily average of 3,000 to more than 20,000.
Positive Sentiment: Moreover, Sui has managed to maintain a healthy sentiment growth. While the sentiment was below 75 back in the summer, it is stable above 85.
Developer Ecosystem & Innovation
Developers and developing activity is a key metric for the future of a project. Here's what I found out about Sui:
Developer Growth: SUI boasts 1,100 active developers each month—a 62% increase over the past year.
Full-Time Devs: Of these, 202 are full-time, while the rest contribute part-time, showcasing a diverse and flexible developer base.
GitHub Activity: With 3,651 repositories and 4.74 million commits, SUI’s dev community is active and committed to advancing the ecosystem and fostering innovation.
Real-World Applications & Usage
Development is one thing; real-world usage is the other. Let's examine Sui's real-world adoption.
Daily Active Addresses are probably one of the best indicators of a chain's adoption. In terms of SUI, the numbers have been constantly increasing. In the last two months, more than 2 million new active addresses have been added.
Trading Volume: Logically, the trading volume has grown sharply during the last few months. While the volume was at ~50m in summer, it is now close to 500m.
Fees: The fees climbed similarly, and Sui is currently collecting ~40k fees daily.
Expanding Use Cases: Moreover, from gaming collaborations with Team Liquid to NFT partnerships like Oracle Red Bull Racing, SUI is making its mark across various industries, attracting users from retail to institutions.
Future Outlook & Sustainability
Let's put everything together.
Contrary to many other projects, Sui comes with thorough tokenomics.
We can see strong growth on social media, which is a main driver for a project's price growth.
Sui has a solid developer base that is pushing the chain forward with innovations.
Data show high user acceptance, growth rates, and healthy revenues.
Based on these facts, Sui has a solid foundation for further growth, both project-wise and price-wise.
A mid-term target of $5-6 seems reasonable for Sui's price. This would increase the market cap toward ~15b (comparable to Tron at the moment). However, if we see a massive bull run, prices of $15-$20 wouldn't surprise me at all (and are probably pessimistic).
