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Why has the price of SUI risen to new all-time highs even with recent bearish pressure? The SUI coin is an example of a layer one blockchain project that recently experienced a massive increase in the value of the coin and is popular among investors.
SUI reached a new high of $2.30 in October 2024. However, the price declined immediately after the profit booking period. However, the strong upward trend remains intact, and many are wondering.
Recent activity has demonstrated that the current bull trend has lifted SUI’s price to a higher level due to the increasing on-chain activity and enhancing the ecosystem. Just in the last month, SUI has increased its price by 118% which places it among the few best-performing altcoins in the market currently. Its performance has garnered comparisons to Solana which also underwent a similar developmental trajectory in the cycle of the year 2021.
Another important factor that contributed to the further advancement of SUI is the new native USDC on the blockchain. It opens the possibility to build more DeFi products, as users have an opportunity to get access to dollar-like assets on the platform. The efficiency of transactions is increasing and there is no need for cross-chain bridges at the same time.
Moreover, Bybit Launchpool’s choice of SUI as its first native token was instrumental in boosting the token’s popularity. This move proved the confidence that SUI has in the asset classes and also served to boost the demand for the asset.
Surprisingly, there is constant growth of active accounts, daily transactions, and TVL of SUI’s ecosystem. It has already transacted 58 million daily – an achievement that puts it ahead of Solana, a popular blockchain layer even at the earliest phase of adoption. It takes only 400 milliseconds to finish SUI’s transactions, and the platform can handle 297,000 TPS, which makes it much more efficient than competitors.
These metrics are indicative of SUI’s increasing adoption by developers and projects, especially in the DeFi segment. The inclusion of native USDC as well as growing throughput indicated SUI has a robust blockchain network in the layer-one market.
A number of analysts are now predicting that SUI could potentially experience the same level of adoption as Solana. For instance, Solana increased its market cap from $6 billion to a value of $250 per token at its apex in 2021. At the moment, the market capitalization of SUI is $6 billion, and if the indicated tenfold growth is achieved, SUI will cost about $22.50. Such a pattern of growth may not be implausible, especially considering the current dynamics and potential of SUI.
However, some level of skepticism is required. While SUI has risen to new heights in recent weeks which is a positive sign, there are issues regarding early investors or insiders dumping their tokens. It is claimed that the wallets linked to SUI’s ICO sold over $400 million worth of tokens throughout the rally. Even though SUI claims to have dismissed accusations of insider trading, its sales have triggered questions about whether the price increase is viable in the long run.
Despite such issues such as insider selling, there are a number of analysts who think that the future is bright for SUI. SUI’s growth and the intricate ecosystem it maintains give the platform an edge over its competitors, and the software sophistication is significant. It is believed that in the future, SUI could still increase, especially in light of new collaborations and tokens.
Crypto analyst Michaël van de Poppe has recently shared his expectation for the continuing growth of SUI and suggested that the cryptocurrency can rise to $2.25-$2.50. He also pointed out $1.79 as yesterday’s crucial support level, through which SUI traded before beginning its new upward movement. This is the condition that as long as SUI keeps a steady climb, record highs may be on the horizon in the coming months.
However, there are factors that investors should consider before investing in the company and one of them is selling pressure. In particular, 2.32% of the circulating supply of SUI tokens, or $114 million worth of them, are to be unlocked on October 23. This could lead to further sales by these early investors, which fall under the Appendix 14 category of sales categorized under Appendix 6. Presently, more than 28% of the total SUI supply is unlocked, and hence further unlocking of this supply can influence the price in question.
Thus, the outlook for SUI is bullish given that the development of the project’s technology alongside its expanding use cases provides more room for the cryptocurrency’s price to grow. Although there has been a rapid increase recently resembling Solana, it must be time to see whether SUI will mimic Solana’s growth.
For now, investors will be eager to see whether SUI can sustain its run-up and weather the challenges posed by some potential selling pressure. Subsequently, SUI token is unlocked and as more and more tokens are used within the ecosystem its value may rise to even higher levels or experience a pullback. In any case, the coin remains one of the most attractive assets in the modern altcoins market cycle.
