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Sui Network, a promising layer-1 blockchain, may soon challenge Solanaās dominance in the alternative blockchain space, according to a recent analysis by K33 Research. In a note published on September 18, K33ās DeFi analyst David Zimmerman highlighted Suiās potential to become a strong contender among āalt L1s,ā especially given its recent performance and technological capabilities.
Sui vs. Solana
Sui has been outshining Solana in certain metrics, notably in market performance. Since the start of August, the SUI/SOL trading pair has gained an impressive 115%, while SOL/ETH has seen a more modest 6% increase.
Zimmerman attributes Suiās recent 36% price surge to a combination of factors, including the networkās architecture and upcoming developments, but also cautions that some of this performance may be linked to wider market mispricing.
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USDC Integration
One of the key developments for Sui is the upcoming launch of USDC on the network, announced by stablecoin issuer Circle on September 17. This integration signals growing industry support for Sui, which could help fuel further adoption of the platform.
Zimmerman believes Sui has the technical potential to rival Solana, citing its theoretical maximum transaction processing speed of 297,000 transactions per second (TPS), compared to Solanaās 65,000 TPS. However, practical TPS figures tell a different story, with Sui achieving 854 TPS in July 2023, while Solanaās real-world maximum sits closer to 3,000 TPS.
Need for Larger User Base
Zimmerman noted that while Suiās technology is impressive, it has yet to outpace Solana in terms of daily average TPS and actual performance metrics. To do so, Sui will need to attract a larger user base and more capital into its ecosystem. However, one key challenge for Suiās long-term price stability lies in its token supply.
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Only 27% of Suiās total token supply is currently in circulation, leaving room for future token unlocks that could lead to significant sell-offs. In contrast, 80% of Solanaās supply is already circulating, offering more stability for investors.
Other Ventures
In addition to its technical offerings, Sui is also preparing to make a splash in the gaming world with the upcoming release of SuiPlay0x1, a handheld gaming console developed by Mysten Labs. The console is set to include a native NFT called āEternals,ā which could provide users with exclusive rewards. Zimmerman compared this to Solanaās Saga mobile device, which offered airdrops that exceeded the initial cost of the phone, making it attractive to speculators.
While Zimmerman sees potential for Sui to close the gap with Solana, he remains confident that Ethereumās position at the top of the blockchain hierarchy is secure.