The Sui Layer-1 blockchain has seen fluctuations that weighed down its market value in the last few weeks. The outlook suddenly changed as the traditional bullish month, “Uptober,” appeared. Earlier this week, Sui saw a rise in popularity and a sharp price increase. While it did not hit an All-Time High (ATH) price, it certainly did in Google Trends searches.
There is an intense focus on SUI, with crypto community members expecting an ATH soon. There are at least 3 reasons why it will likely rally to a new ATH. Here they are.
SUI Technology: The Emergence of SCION
On October 2, Sui enabled one of the most secure modern alternatives to the Border Gateway Protocol. Though it has routed traffic for several years, the security of BGP has not kept pace with the increasing risks on the internet. With an infrastructure built on SCION technology, Sui intends to address the challenge of Internet routing risks on Web3.0.
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According to Studio Mirai’s CTO, Brian Li, the newly introduced SCION is focused on optimizing network latency, reliability, and security. With a SCION-enabled network, clients can specify a network route upfront. This activity, called “path-aware networking,” makes it possible to prompt traffic to take the most ideal route.
George Danezis, Co-Founder and Chief Scientist at Mysten Lab, noted that “SCION is the security layer that the Internet desperately needs: it is built from the ground up with security in mind.”
With SCION, a new use case is unleashed on SUI that can drive the coin’s adoption. This can have a positive effect on price in the long term.
Institutional Leaning via Grayscale SUI Trust
With the existence of the Grayscale SUI Trust, many institutional investors are gradually tilting towards the ecosystem. This offering was launched in August as securities solely invested in and deriving value from the price of SUI.
Investors can gain exposure while avoiding the challenges of directly buying, storing, and safekeeping digital assets. In a matter of weeks, it made it available to accredited investors eager to invest in the crypto. As of mid-September, the Grayscale SUI Trust had $892,213.45 in Assets Under Management (AUM), with each share representing 14.95 SUI.
It is worth noting that these shares are designed to track the SUI market price with reduced fees and expenses. Based on data on the Grayscale platform, the offering currently trades at $26.58 per share. With more institutional buyups, the price will likely pick up momentum in the long term.
Memecoin Explosion
Currently, the Sui ecosystem is experiencing a memecoin frenzy. Most of the memecoins on the network are enjoying a price rally, with gains running into double digits.
Excitedly, their gains have even surpassed that of the broader cryptocurrency market. According to CoinGecko, the total market cap of memecoins on the SUI blockchain has risen by 15%.
This key metric hit $256.3 million in barely 24 hours. On the other hand, the broader crypto ecosystem saw a surge of only 4.4% and is resting at $2.15 trillion. Such stellar performance made Sui the second-highest 30-day gainer among the top 100 cryptocurrencies by market cap last month.
If these trends continue, the SUI price may surpass its March 27 ATH of $2.18. At this writing, the digital currency was trading at $1.71, down by 1.8% in the last 24 hours.
