With the Rising Popularity of Sui, Will It Become the Solana Killer this Round?

[TL；DR]:

Recently, Sui prices have surged and become popular on social media, earning the nickname “Solana Challenger.”

The recent support of Grayscale Trust for the “gray effect” brought by Sui and the performance improvement brought by the Mysticeti upgrade are important driving forces behind the recent surge in Sui coin prices.

Driven by technological innovation and market demand, the Sui eco will continue challenging Solana’s position as the king of performance.

Introduction

With the continuous rise in Sui price, Sui has attracted great attention and discussion on social media platforms. Its popularity has skyrocketed, and it has even been dubbed a “Solana challenger” by some observers, suggesting that it may pose competitive pressure on Solana and similar projects.

We also wrote an article last year discussing the development of MOVE series public chains such as Sui and Aptos. This article continues to explore the construction of the Sui eco and analyze its growth potential.

Coin Price Rises 140% in a Week, Sui Attracts Market Attention

Sui prices have rebounded significantly, from a low of $0.46 on August 5 to a peak of $1.11 on August 12, with a staggering weekly increase of over 140%, leading mainstream public chain tokens.

As of the writing date, Sui prices have slightly fallen and are stabilizing around $0.91.

Source: Gate.io

However, some analysts pointed out that this upward trend may be a manifestation of an oversold rebound from a technical analysis perspective. Based on its recent leading position as a rising currency in the Layer1 sector, it has now broken through the suppression of the downtrend line and is supported when it falls back to near the 60-day moving average, which often indicates that it will trigger the next wave of bullish sentiment.

From a broader perspective, Sui has experienced a significant decline in the past six months since hitting $2.18 on March 27 this year. The lowest point reached $0.46, a drop of over 78%.

This price trajectory easily reminds people of Solana (SOL)’s similar fluctuations in the early stages of the last bull market, when SOL experienced an 80% plunge before rebounding to an astonishing 2500% increase.

Source: public informatin

Of course, from the perspective of market capitalization, Sui is currently at $2.2B, ranking 15th on the Layer1 public chain and only accounting for 1/30 of SOL’s market share. It is premature to judge whether it will shake SOL’s market position. However, its TVL has reached $600M, accounting for 1/8 of SOL’s market share. We can see from this data that Sui is relatively undervalued, and its eco value needs to be further released.

Source: CoinGecko

Grayscale Support and Mysticeti Upgrade Driver Sui Price Surge

Andrew Kang, co-founder of Mechanism Capital, pointed out important reasons for Sui’s recent appreciation, such as the support of former Goldman Sachs utive and macroeconomic expert Raoul Pal, the surge in demand for over-the-counter trading, the continued confidence of holders after large-scale unlocking, and the steady rise in Sui prices without any signs of correction.

Source: @Rewkang

In my opinion, these events seem to be attributed more to the external performance of the market brought about by Sui’s sharp rise, and its significant upward momentum is mainly due to the improvement of its fundamentals and funding, namely the “gray effect” brought about by Grayscale Trust’s support for Sui recently and the performance improvement brought about by Mysticeti’s upgrade.

On August 7, Grayscale announced the introduction of two new crypto investment products, focusing on trust funds for Sui and TAO tokens.

Rayhaneh Sharif Askary, Director of Product and Research at Grayscale, is pleased to announce in the official statement, “We are honored to include Bittensor and Sui in our product lineup. We firmly believe that Bittensor is a key force driving the development of decentralized AI, while Sui is leading a new round of transformation in the field of smart contract blockchain.”

This positive signal quickly fermented in the market, causing Sui’s price to soar by 42% the following day, reaching the largest single-day increase in recent times.

In addition, last Tuesday, CoinList announced the launch of the Staking Fund, which provides passive returns on digital assets to accredited investors in the United States. It supports five types of assets: ETH, SOL, NEAR, Sui, and MINA, with Sui yielding an annualized rate of 3.35%.

In addition to the support of the secondary trading market, Sui has recently started to launch a new consensus engine Mysticeti in stages, which will greatly improve network performance efficiency and make Sui potentially one of the fastest available blockchain networks.

Source: Sui.io/mysticeti

Mysticeti is a new consensus algorithm based on DAG (Directed Acyclic Graph), aimed at solving the trade-off between latency and throughput in traditional consensus algorithms. Compared with the old algorithm Narwhal Bullshark, its performance has improved by about 80%.

This improvement not only shortens the time for transaction confirmation, but also optimizes network throughput, enabling it to maintain efficient processing capabilities in the event of node and network failures. It enables real-time interaction of games and virtual reality experiences on the blockchain, providing developers with more opportunities for innovation.

How Far Does Sui Have to Go from Becoming the Solana Killer?

In my opinion, Sui, as a high-performance Layer1 public chain, has demonstrated some characteristics superior to similar projects. Despite being far behind giants, like ETH and SOL, Sui’s current positive signs are encouraging.

Thanks to the significant improvement in transaction speed achieved by Mysticeti’s upgrade, Sui’s target is set at 100,000 TPS, making it second only to Solana in TPS. Especially in May this year, relying on the SPAM (spam) brushing mode, Sui once surpassed Solana to become the public chain with the highest number of transactions.

Source: Artemis Terminal

In the future, Sui will continue to optimize the underlying architecture, especially with the introduction of zero knowledge proofs and sharding technology, which will greatly enhance the network’s privacy and scalability.

In addition, Sui is committed to exploring cross-chain interoperability to build a more open and interconnected blockchain eco.

The Sui eco will continue to evolve under the dual drive of technological innovation and market demand. Sui will further enhance the security, privacy, and scalability of its network while exploring cross-chain interoperability. This will bring unprecedented openness and interconnectivity to the Sui eco, promoting the deep integration of the blockchain world.

Overall, Sui has demonstrated certain performance advantages compared to some other Layer1, but there is still significant room for optimization and improvement, especially in the construction of its eco and its unique style, which needs further improvement. In short, the ‘Solana Killer’ seems exaggerated. We will continue to monitor whether it can support such high market expectations.