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- Sui Network is emerging as a potential competitor to Solana in the layer-1 blockchain space.
- The network has gained support from major players like Circle.
The Sui Network is emerging as a strong contender in the layer-1 blockchain space, with analysts from K33 Research highlighting its potential to challenge Solana’s dominance. In the recent research note, DeFi analyst at K33 David Zimmerman highlighted Sui’s remarkable growth and performance, adding that it could compete with other popular alternative layer-1 networks.
In the last few months, Sui has done better than Solana, with the help of a sharp price increase, as stated by K33 Research. While Solana’s SOL token appreciated against Ethereum by 6% since August, Sui’s native token (SUI) skyrocketed against SOL with a 115% rally in the same period. Sui has attracted the attention of market participants during this period, but Zimmerman pointed out that some of Sui’s recent gains may be due to market anomalies. However, he highlighted that there is a solid ground for Sui’s growth.
Sui’s technical capabilities also stand out. Sui has a maximum theoretical transaction speed of 297,000 TPS, which makes it faster than Solana, which has a maximum theoretical transaction speed of 65,000. But in reality, Solana’s greatest real TPS is around 3,000, whereas Sui accomplished 854 TPS in July 2023.
Circle Deploys USDC on Sui Network
The Sui Network was further strengthened after Circle revealed that it would deploy its USD Coin (USDC) stablecoin on the platform. This move is evidence of increasing industry backing for Sui and indicates that it may become more widely used. The entry of Circle is quite a boost for Sui, and other players in the blockchain space may be encouraged to approach Sui.
However, there are still some drawbacks to Sui’s technology, as Zimmerman pointed out. The first concerns the tokenomics of the network. The Sui token supply, which started in May 2023, is still relatively young, with only 27% of the total tokens in circulation. On the other hand, Solana has 80% of its token supply in circulation, which can prevent large sell-offs from future token unlocks that can hurt Sui’s price.
Analysts Identify Potential Drawbacks in Sui’s Tokenomics
Besides the performance and industry partnerships, Sui’s attractiveness is also enhanced by the upcoming launch of the SuiPlay0x1 handheld gaming console. The new console has been developed by Mysten Labs, the main developer behind the Sui network, and is expected to go live next year. It will include an exclusive ‘Eternals’ NFT that could grant special rewards to the user.
Besides the performance and industry partnerships, Sui’s attractiveness is also enhanced by the upcoming launch of the SuiPlay0x1 handheld gaming console. The new console has been developed by Mysten Labs, the main developer behind the Sui network, and is expected to go live next year. It will include an exclusive ‘Eternals’ NFT that could grant special rewards to the user.
Zoomer Oracle, a market analyst, has stated that Sui has been referred to as the ‘Solana Killer’ after it unveiled the magical upgrade that will increase the network’s capacity to 100,000 TPS. SUI’s price rebounded after Grayscale announced the launch of a new fund that will be supporting the SUI project.
