Popular layer 1 network Sui has become one of the best performing cryptocurrencies since August, surging to a five-month high.
The Sui (SUI) token has risen for three consecutive weeks, up more than 240% from its lowest level in August, with a market capitalization of more than $4.17 billion.
1. The DeFi ecosystem is growing
Sui, often seen as a competitor to Solana (SOL), has performed well due to its growing popularity among users and developers. Third-party data shows that the total value locked in its decentralized finance ecosystem has jumped from $383 million in August to a record $860 million.
Some of the most notable Sui dApps have seen growth in asset size, including Suilend, Scallop Lend, and Cetus, which have accumulated assets valued at over $137 million.
Sui has also attracted $378 million worth of stablecoins, a number that is likely to rise now that it has activated Circle’s USD Coin.
Additionally, Sui’s decentralized exchange is seeing an increase in activity, largely due to its low fees. Its trading volume has grown 50% in the past seven days to $428 million, making it the ninth-largest blockchain in the industry. It has surpassed some popular blockchains such as Tron ( TRX ) and Avalanche ( AVAX ).
The growth of the ecosystem has led to an increase in transactions in the network. According to Suiscan data, the number of transactions has grown to more than 548,000, the highest level since May. Its six-month transaction volume increased by 21% to 1.91 billion.
2. Sui is becoming a major player in the gaming world
At the same time, Sui is positioning himself as a major player in the blockchain gaming industry, which is often seen as a key use case for blockchain technology.
Developers have introduced several gaming tools, such as zkLogin, which helps players easily join games. It also features a self-service terminal that allows developers to set custom transaction policies. Other key features include closed-loop tokens and parallel transaction processing.
Most notably, the developer is accepting pre-orders for a gaming console that will have some blockchain functionality. During the pre-order process, users will create a new wallet that will hold a unique NFT when the device is delivered.
Sui also saw a surge in futures open interest, which soared to a record high of $453 million on September 20.
3. Sui has strong technical skills
SUI stock has also risen on its strong technicals. The rally began on August 5, when a small hammer was formed – a common reversal signal in price action analysis.
Sui Wenjing has broken above its 50-day and 200-day moving averages and is about to form a golden cross, which is typically a bullish indicator. The Average Directional Index has risen to 30, and the Relative Strength Index has risen to 83.
These indicators suggest that the Swiss franc has bullish momentum, which means that in the short term the Swiss franc could continue to rise. If this happens, the next potential level to watch would be $2.17, which was the highest swing in March and 40% higher than the current level.
