NAIROBI (CoinChapter.com)—SUI is mirroring Polygon’s (MATIC) legendary 2021 rally, positioning itself as the next breakout star in the ongoing crypto bull cycle. The token’s steady upward trend has drawn comparisons to MATIC’s meteoric rise, which saw minimal corrections and consistent higher lows during its early rally.
SUI Price Action Mirrors Polygon’s Breakout
SUI has become one of the top-performing assets in 2024, showcasing strong momentum similar to MATIC’s performance in 2021. After smashing an all-time high (ATH) of $4.92 on Dec. 14, 2024, SUI has maintained its bullish structure. Despite failing to touch $5 twice, the token’s 521% year-to-date gains and 182% Q4 performance reinforce its bullish outlook.
SUI vs Polygon: Similar Breakout Patterns Compared. Source: X
Polygon’s 2020-2021 rally followed a distinct pattern of sharp pumps, shallow corrections, and continued higher lows. SUI appears to be replicating this structure, fueling investor optimism for a sustained rally. Market analyst Crypto GEMs noted on X that SUI’s daily net inflows outpace other chains, hinting at strong investor confidence.
SUI Leads Daily Net Flow, Topping All Chains. Source: X
“SUI is following the exact blueprint MATIC used during its 2021 breakout,” the analyst stated. “If history repeats, we’re looking at exponential growth from here.”
Catalysts Driving SUI’s Growth
SUI’s breakout began in November after exiting a consolidation range between $1.70 and $2.30. The move aligned with renewed market momentum following the U.S. election results.
During Q2 2024, the crypto market cooled, dropping 16.4%, with SUI’s circulating market cap falling 15.7%. However, in Sept., SUI surged 133.3% after two major catalysts: the integration of Circle’s USDC and Cross-Chain Transfer Protocol (CCTP) and the launch of the Grayscale Sui Trust. By Q3’s end, SUI’s market cap grew 139.4% quarter-over-quarter to $4.8 billion, placing it in the top 21 cryptocurrencies.
Sui’s Market Cap Soars 139% QoQ to $4.8B. Source: messari
May 2024’s token unlocks, releasing 10.19% of the total supply (182.1 million tokens worth $324.1 million), added temporary pressure. Increased trading activity stabilized prices, aligning SUI’s growth with market cap performance.
Network health remained strong despite volatility. Quarterly fees hit a record $1.1 million after the May unlocks, driven by higher transaction volumes. Although fees dropped 31.8% in Q3 to $750,400, activity levels stayed robust. At the same time, SUI’s inflation rate from staking rewards fell to an annualized 0.44% and will decrease by 10% each quarter until all 1 billion tokens are distributed.
Polygon’s Stumbles Create Opportunities for SUI
Polygon’s struggles in the DeFi space further highlight SUI’s opportunity to dominate the market. Lido Finance, the largest liquid staking protocol, recently announced it would wind down operations on Polygon. The decision followed a community vote where 99% of Lido DAO participants favored the move due to limited adoption and resource challenges.
Lido Announces Sunset Process for Polygon Integration. Source: X
Lido justified its exit, pointing to diminishing demand for liquid staking solutions on Polygon PoS amid the shift to zkEVM technologies. Aave, a major lending protocol, also initiated plans to exit Polygon, citing governance issues related to bridging assets.
In contrast, SUI’s strong adoption and consistent inflows suggest it could fill the void left by Polygon’s challenges. With its bullish price trajectory and growing investor interest, SUI continues to attract attention as a leading contender for altcoin dominance in 2025.
SUI’s price action and performance align closely with Polygon’s 2021 bull run. The token’s minimal corrections, steady higher lows, and strong inflows point to a healthy “up-only” trend. As Polygon faces operational hurdles, SUI’s momentum positions it as a breakout star in the ongoing bull cycle, with investors eyeing a sustained rally above $5.
