SUI has attracted a lot of attention recently, and its development has reached a peak. At the close of the week, its price reached an all-time high of $2.30, ranking above top altcoins such as Polkadot (DOT), thus entering the top 15 cryptocurrencies. For those who support SUI, this achievement inspires hope, as they believe that it will become a major competitor in the market.
DeFi noticed a surge in SUI’s price, with the total locked value (TVL) reaching $1 billion. The token is ranked higher than Avalanche (AVAX) and Polygon (MATIC). Investors noticed SUI’s growing position in the DeFi market, and SUI forecasts show a continued positive trend over the next three months, with an increase of up to 240%.
$SUI surpasses $DOT. Congratulations to those who listened to me. pic.twitter.com/ FtU5vk8f8M
— MartyParty (@martypartymusic) October 13, 2024
Data from Coingecko shows that at the time of writing, SUI is trading at $2.04, down 4.3% over the past 24 hours but up 8.7% over the past seven days.
Valuation query appears
SUI’s rapid rise has excited many, but has also raised questions. In fact, some analysts are questioning whether the token’s current market cap is in line with its actual fundamentals.
SUI price is expected to rise significantly in the next three months. Source: CoinCheckup
The rise in value has sparked a debate as people try to measure SUI’s market cap to identify potential issues. This is not uncommon for coins or even tokens that expand rapidly; however, it also tends to cause some doubt among potential buyers.
Insider selling is another concern. During the token’s recent rally, large transactions from the foundation wallet raised questions about its price sustainability. Withdrawals during a price surge could indicate that insiders are unsafe, making investors doubtful about the long-term outlook.
SUI's market cap is currently $5.6 billion. Chart: TradingView.com
Fully Diluted Valuation Comparison
The complexity of SUI’s current situation is exacerbated by its fully diluted valuation. SUI’s fully diluted valuation is $1.2 billion, which is significantly lower than Solana’s $4.7 billion. Some market experts claim that Solana may be mispriced, as Solana’s fully diluted valuation is less than one-third of Ethereum’s. This has led some to conclude that SUI is currently overvalued.
SUI rose last week. Source: Coingecko.
This comparison also raises the question of possible mispricing in the market, which makes it important for investors to weigh the pros and cons before jumping in. Currently, there is competition between various cryptocurrencies, and understanding the valuation of such projects relative to other tokens can give people a better understanding of each token.
What’s next for SUI?
Despite the concerns, the near-term outlook for SUI is positive. Looking at the price action, the stock will see an upward trend as forecasts show a significant increase in the market size in a few months. The price of SUI is expected to increase by 244% in the next three months, which has attracted many hopeful investors.
Investors are advised to proceed with caution. Considering the large amount of insider trading and concerns about valuations, the future may not be as optimistic as expected. Tracking market dynamics and technical analysis are very important to cope with the risks brought by the rapid rise of SUI.
