Sui Network Set to Overtake Solana? K33 Research Thinks So.
NAIROBI (CoinChapter.com) — According to a recent K33 Research report released on Sept. 18, the Sui Network is poised to become a formidable contender against Solana in the layer-1 blockchain arena. The report emphasizes Sui’s advanced technical features and upcoming initiatives as pivotal elements that could drive its rise as a competitor to Solana soon.
Could Sui Outpace Solana?
David Zimmerman, K33’s DeFi analyst, pointed out that Sui has been outperforming Solana recently. Since Aug., Sui’s native token (SUI) has surged 115% against Solana, while SOL only gained 6% against Ethereum in the same period.
Zimmerman attributes this rapid growth partly to market dynamics but believes Sui’s technological advantages are crucial in its rise.
Comparative performance metrics of Sui vs. Solana by K33 Research
Sui’s blockchain architecture allows a theoretical maximum of 297,000 transactions per second (TPS), dwarfing Solana’s 65,000. But when looking at real-world performance, the numbers are more competitive.
CoinGecko data show that the Etheruem competitor’s peak TPS hit 3,000, while Sui’s highest in July 2023 was 854.
Zimmerman emphasized that while Sui still trails in daily usage metrics, its infrastructure can potentially attract more users and capital.
Is Sui’s Token Supply a Ticking Time Bomb?
Despite its promising technology, Sui’s tokenomics could pose a risk. Only 27% of Sui’s total supply is currently in circulation, meaning future token unlocks could lead to sell-offs and price dips.
By comparison, 80% of Solana’s tokens are already in circulation, providing more price stability for its investors.
Comparative tokenomics of Sui and Solana by K33 Research. Source: K33 Research
Adding to Sui’s momentum is the planned release of its handheld gaming console, SuiPlay0x1, set for 2024. The device could attract more users to the network, much like Solana’s Saga mobile did. However, Zimmerman believes the real test for Sui will be how it performs in practice and whether it can sustain its growth over time.
Sui’s Developer Appeal Grows as Solana Faces Stability Concerns
Sui’s stability has attracted developers frustrated by Solana’s frequent outages. Tim Kravchunovsky, CEO of Chirp, called Sui a more reliable alternative, referring to it as “Solana 2.0.” Developers are turning to Sui to address Solana’s scalability issues.
In an interview, Kravchunovsky explained that his team chose Sui to build Chirp’s Decentralized Physical Infrastructure Network (DePIN) due to concerns over Solana’s outages. However, he admitted that the blockchain provided a better user experience, with users favoring simplicity over technical features.
Developer Kylebuildsstuff echoed this sentiment in a July interview, noting that while Sui might raise the bar for developers, Solana’s user experience and mature ecosystem are what users care about most.
Sui vs SOL. Source: TradingView
As of Sept. 19, SOL is trading at $138.82, up 7.4%, maintaining its position as the fifth largest cryptocurrency. In comparison, SUI is priced at $1.34, up 14.7%, though its market cap stands at $1 billion, keeping it well behind Solana.
Analysts like Raoul Pal are optimistic about Sui’s performance, noting its strength in a stagnant market. He believes Sui is positioning itself as one of the leading new blockchains. Pal claimed that SUI could become “one of the major new chains” in the future.
SUI/USD 1-day price chart. Source: Raul Pal/X
Sui is gaining ground with its technology, but it still has a way to go before it can truly rival Solana’s established position.
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