2 months ago
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Sui price has embarked on an unstoppable bull run, making it one of the best-performing cryptocurrencies in the industry. It soared to a high of $1.1752 on Wednesday morning, its highest point since April 30th and 151% above its lowest point in August.
Sui’s performance happened at a relatively difficult period for the market as the crypto fear and greed index remained in the fear zone. It also happened at a time when most cryptocurrencies like Ethereum, Solana, and Bitcoin have remained in a tight range in the past few weeks.
Sui is seen as a Solana alternative
The first main reason why the Sui token price has surged is that it is often seen as a viable alternative to Solana, one of the biggest players in the crypto industry.
Solana is known for its quick speed and low transaction costs, which makes it one of the best layer 1 alternatives to Ethereum. However, the network is also known for its congestion and outages.
Solana’s congestion has happened because of the vast number of developers and users in its ecosystem. Data by DeFi Llama shows that it has over 3.4 million active addresses, higher than Ethereum and Tron combined.
Sui, on the other hand, has fewer developers and active addresses, which makes it a more friendly environment for developers. Some of the most notable players in the ecosystem are Cetus, Suilend, Aftermath Finance, and NAVI Protocol.
A good example of this is a Coindesk opinion writer who said that he selected Sui for their Decentralized Public Infrastructure Network (DePIN) because of Solana’s congestion. Data shows that Sui can handle over 297k transactions per second, with the average transaction cost being less than $0.0010.
Sui’s ecosystem growth
The other main reason why Sui price is doing well is because of its ecosystem growth. Data by DeFi Llama shows that the network has 40 dApps in the DeFi industry with over $735 million in total value locked. These assets make it to be the 9th biggest player in the DeFi industry.
Sui has become a bigger network than many blockchains that have been in the industry for a long time. For example, it is bigger than Cardano, a layer-1 network that was often seen as an alternative to Ethereum. It is also larger than popular chains like Algorand, Near Protocol, EOS, and IOTA.
Sui also has over $360 million in stablecoins in its ecosystem. This is notable because stablecoins are the currencies used across industries like DeFi, payments, and Non-Fungible Tokens (NFTs).
Sui’s stablecoin growth will likely continue after the decision by Circle to move to its ecosystem. This means that Circle’s USDC will be moving to Sui. It will also launch the cross-chain transfer protocol, enabling developers to build cross-chain flows from other chains.
Sui is also used by some of the biggest companies in the world like Alibaba Cloud, Oracle RedBull Racing, and Bluefin. On Tuesday, Sui said that it was teaming up with MoviePass to help decentralize the film industry. Moviepass became popular for offering a subscription package for movie theatre attendance.
Sui 🤝 @MoviePass We’re partnering with MoviePass to help decentralize the film industry—empowering movie producers with innovative tools and enabling fans to influence how their favorite films come to life. 🎬 And that’s just the start! MoviePass will soon accept native USDC…
Additionally, Sui is a big name in the decentralized exchange (DEX) industry. Data shows that DEX networks in its ecosystem handled volume worth over $350 million in the last seven days, a 34% increase. This makes it the eleventh biggest chain in the industry.
Sui and the gaming industry
Sui has also become a big name in the gaming industry, thanks to its features that are tailored to the sector. For example, it has the zkLogin feature that lets game developers onboard users easily.
Sui also has closed-loop tokens that lets creators limit where a token is used, a kiosk, that lets users set custom trading policies, and parallel transaction processing.
Sui is also working on a handheld gaming console known as SuiPlay that will be launched next year. It is selling the Nintendo-looking device for $600.
Sui price technicals
Sui chart by TradingView
Additionally, Sui has risen because of higher volume in the spot and futures market. Data by CoinGlass shows that its open interest in the futures market has surged to a record high of over $317 million, higher than $57 million in May this year.
It also has some encouraging technicals. On the daily chart, there are signs that it formed an inverse head and shoulders pattern, a popular bullish sign.
Sui is also about to form a golden cross as the spread between the 200-day and 50-day moving averages narrow. That crossover would lead to more gains, with the next point to watch being at $1.4437, its highest swing on April 21.
Sui’s Average Directional Index (ADX) has risen to 24 while the Relative Strength Index (RSI) has moved to 71, a sign that it has a bullish momentum.
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