NAIROBI (CoinChapter.com)—Sui (SUI), a Layer 1 blockchain developed by Mysten Labs, has been drawing attention lately. Many are comparing its rapid growth to Solana’s 2021 bull run. In the three months leading up to Oct. 8, 2024, the SUI crypto token surged by about 180%. This is approaching the token’s all-time high of $2.18. This sharp increase, combined with rising network activity, has led to comparisons with Solana’s rise which was fueled by memecoin excitement and decentralized finance (DeFi) growth.
Memecoin Frenzy Driving Sui’s Growth
One of the key drivers of Sui’s recent momentum is the wave of memecoins being launched on its blockchain. Crypto communities have noted similarities to Solana’s earlier bull run, where a memecoin boom led to significant price increases. According to HC Capital, new memecoins are being launched on Sui almost every minute, with early tokens expected to perform well.
SUI Memecoin Season Showcases Diverse Token Ecosystem. Source: HC Capital
Memecoins like $HIPPO, $BLUB, and $FUD are gaining traction on the Sui network. There is speculation rising that these tokens could follow a similar trajectory as their Solana counterparts.
Moreover, this memecoin frenzy has drawn many traders and investors hoping to capitalize on the early-stage tokens in Sui’s quickly expanding ecosystem. The speculative activity is increasing liquidity and network attention, as seen with Solana. Additionally, the similarities between Sui and Solana are becoming more apparent.
SUI growth likened to Solana’s 2021 surge. credit: Easy/X
Consequently, crypto analyst Easy is particularly bullish on Sui. He also compares the current situation to Solana’s early growth phase. According to Easy, all key indicators—from total value locked (TVL) to transaction volume—suggest robust expansion within the Sui ecosystem. He believes that the current price of $2.01 is heavily undervalued, predicting that SUI could soar to $10, making it a potential steal for early investors.
Sui’s Tech Innovations and Institutional Confidence Drive Its Growth
Specifically, Sui uses deterministic parallelization, allowing it to process over 10,000 transactions per second (TPS). This is a notable improvement over Solana’s 7,229 TPS. This method ensures efficient execution of non-conflicting transactions.
In addition, the Move programming language, developed by Sui’s founders, optimizes transaction processing. Move does this by managing interactions at the asset level. The introduction of the Mysticeti consensus protocol in July 2024 further improved the network by lowering CPU requirements for validators and reducing transaction latency.
Grayscale launches new Sui and Bittensor crypto trusts. Credit: Grayscale/X
In August 2024, Grayscale Investments launched a trust dedicated to investing solely in the SUI token. The trust has already attracted over $2.5 million. This reflects institutional confidence in Sui’s potential as a major player in the Layer 1 blockchain space.
Record-Breaking Transactions and Ecosystem Expansion
On Oct. 5, 2024, Trading Copter revealed that Sui surpassed Solana in daily transactions for the first time, recording 117.88 million compared to Solana’s 35.41 million. This marked a significant milestone in Sui’s ecosystem growth.
Sui overtakes Solana in daily transactions. Source: Trading Copter
Moreover, Sui has also expanded its ecosystem through the launch of a cross-chain bridge with Ethereum in Sept. 2024. This bridge facilitates transfers between ETH and WETH, improving the network’s interoperability. As a result, Sui’s total value locked (TVL) reached $1.12 billion by Oct. 8, placing it seventh among all blockchains in TVL rankings.
Notably, as Sui’s memecoin market expands and the blockchain makes technological strides, comparisons to Solana’s 2021 bull run are becoming more common. If these trends hold, Sui could follow a similar trajectory and solidify its place as a leading Layer 1 blockchain.
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