SUI Surges as Fastest-Growing Crypto, but Unlocking Tokens Pose a Challenge
Over the past week, SUI has become the quickest-growing coin among the top 50 by market cap, with a notable 39% rise.
SUI operates as a Layer 1 blockchain that supports smart contracts. Analysts believe it has the potential to eventually overtake Solana. Let’s explore the strengths and weaknesses of the project.
+ High Throughput
SUI outpaces Solana in terms of theoretical speed, with a potential 297,000 transactions per second (TPS), compared to Solana’s 65,000 TPS. However, in real-world performance, Solana still leads, as SUI’s highest recorded TPS so far is only 853.
+ Rapid TVL Growth
SUI is experiencing significant growth in the DeFi space. This year, its total value locked (TVL) has nearly quadrupled, reaching $813 million. While SUI ranks 24th in terms of market cap, it stands 9th by TVL.
+ Grayscale Fund Investment
In August, Grayscale launched the SUI Trust Fund, which has already attracted $1.8 million in investments.
- Locked Tokens
A large portion of SUI tokens, 73%, remains locked. Of these, 13.7% (987 million tokens) belong to early investors. For reference, in Series A, the coin sold for $0.05, and in Series B, it was priced at $0.50. SUI is now trading at $1.40.
Since May, early investors have been able to access 50 million coins monthly, valued at $70 million. Given their low initial buy-in, there’s a strong incentive for these investors to take profits, which could impact the price.
Cryptocurrencies involve complexity and carry a high risk of rapid monetary loss due to volatility and changing regulatory landscape. It’s crucial to ensure you understand how cryptocurrencies operate and can withstand the potential high-risk scenario of losing your assets.
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