Although popular altcoin Solana is currently considered the best Layer 1 network comparable to Ethereum, analysts claim that another altcoin may replace Solana.
Therefore, K33 Research said Sui (SUI) has emerged as a potential competitor to Solana.
Sui Network may be Solana’s biggest competitor!
Although Solana is currently competing with ETH to become the top alternative layer 1 network after Ethereum, analysts at K33 Research said Sui could be a strong competitor for Solana.
K33 Research analyst David Zimmerman highlighted that Sui has recently surpassed Solana, with the SUI/SOL ratio increasing by 115% since August, compared to SOL’s 6% gain against ETH.
With this success, Zimmermann said SUI could compete with Solana and replace Solana as a competitor to Ethereum.
Sui’s technology supports up to 297,000 transactions per second, surpassing Solana’s 65,000 transaction capacity, demonstrating its powerful capabilities, Zimmerman said.
“Solana often gets the spotlight in the L1 battle, but while SOL/ETH is up 6% since the beginning of August, SUI/SOL is up 115% over the same period.
Sui uses market-leading L1 technology with a theoretical maximum throughput of 297,000 transactions per second (TPS) and a completion time of 480 milliseconds.
These achievements make SUI a potential and strong competitor.”
Despite SUI’s success, Zimmerman noted that there is a significant obstacle that could affect SUI’s long-term price action.
The analyst said that this obstacle is the token supply. “Since SUI’s token circulation ratio is very low relative to Solana, SUI may face a large sell-off after future unlocking operations. Because only 27% of Sui’s total token supply is in circulation, while Solana’s total token supply is currently 80% in circulation.”
SUI has gained 13.1% in the past 24 hours and is still trading at $1.36 at the time of writing.
