As a seasoned crypto investor with a knack for sifting through market noise and analyzing underlying fundamentals, I find myself intrigued by the meteoric rise of SUI. However, I’m always wary when the buzz around a coin outweighs its actual performance, and this seems to be the case with SUI versus Solana.
Recently, the Layer-1 chain Sui (SUI) has been attracting a lot of notice. In the past 30 days alone, it has climbed an impressive 125%, and even more remarkably, it has soared 345% from its yearly low of $0.46 on August 5. These outstanding numbers place SUI among the top performers in the crypto market during the last two months and within a select group of altcoins that have reached their all-time highs.
SUI Vs. Solana
Yesterday, there was a lot of excitement as various X accounts posted graphs showing that SUI had processed more daily transactions than Solana for the first time. Excited supporters began to praise SUI as the potential future leader in Layer-1 platforms, surpassing Solana, which has been one of the main competitors among Layer-1 blockchains after Ethereum.
Nevertheless, this claim was subjected to examination by industry specialists. In response, Developer João Mendonça utilized platform X to challenge the statements, arguing: “The SUI network did not outperform Solana in terms of daily transactions — there’s no such thing as a free lunch. On the left side = a misleading graph where each instruction within each transaction is tallied as a separate transaction on SUI. On the right side = Artemis’s authentic interpretation of daily transactions.
Mendonça cited an extensive breakdown provided by analytics firm Artemis back in May. This firm pointed out that when using conventional Ethereum Virtual Machine (EVM) structures, users typically submit individual transactions which then execute a series of instructions. However, on the SUI blockchain, users send a transaction block with several transactions embedded within, each updating various objects in the global state. Consequently, it may be misleading to compare transaction numbers directly between SUI and chains such as Solana.
Artemis opted to tally Sui’s transaction blocks rather than individual transactions when assessing activity alongside Ethereum and other networks. This choice stemmed from the unique architecture of Sui, which differs from EVM, making it more precise to gauge user interactions by counting transaction blocks instead.
Crypto analyst VirtualBacon also offered his perspective on the discussion, examining the price comparison chart between SUI and SOL. He pointed out: “The ratio of SUI to SOL is nearing resistance. It’s worth pondering whether there’s still significant upside potential for this ‘new promising L1’. For it to continue its momentum for another month, it either needs to significantly increase its market share at the expense of Solana, or we might see a shift back to more established blockchains.
In a somewhat skeptical tone, he remarked: “It seems that some individuals think they’ve jumped on the SUI bandwagon just in time, even with it reaching an all-time high and boasting a 20 billion dollar fully diluted valuation. However, I don’t think SUI is even remotely at Solana’s level of adoption yet, in my opinion.
Michael van de Poppe, a crypto analyst, expressed skepticism that the SUI price could surpass its all-time high right away. Through X, he posted today: “SUI has made a sudden surge and reached a new record high. The first one! It didn’t provide an opportunity for me to invest, but it may have peaked for now. I’m considering the same region or $1.85 as potential entry points. This could be a significant runner.
Regardless of ongoing discussions, SUI has been steadily growing in popularity. In September, Raoul Pal, founder and CEO of Global Macro Investor and RealVision, praised SUI as a revolutionary ultra-fast L1 with an incredibly efficient full blockchain ecosystem. He highlighted that SUI, born from the remains of Meta’s Diem project, is engineered to accommodate billions of users moving from Web2 to Web3 technologies. Pal’s commendation sparked greater interest in SUI among cryptocurrency enthusiasts.
In simple terms, in September, Circle – the organization behind USDC, one of the world’s largest stablecoins by market value – declared that the Sui network would now accommodate USDC. This integration could boost liquidity and functionality on the Sui blockchain, potentially drawing in more developers and users due to its added benefits.
Lately, on a Monday, crypto exchange Bybit unveiled that SUI is now supported on its Launchpool platform. This decision means SUI is the second chain available on this service, following Mantle (MNT). Now, users have fresh chances to earn rewards and engage with the Sui ecosystem.
At press time, SUI traded at $2.01.
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2024-10-08 21:40