Last week, SUI tokens were made available to users of several cryptocurrency exchanges in a presale.
When trading began at 12 noon UTC on Wednesday, the value of SUI Network tokens quickly rose to $2 per token, according to data. As of now, the total value of the tokens is almost $690 million, and their fully diluted valuation (FDV) is an astonishing $13 billion.
According to blockchain explorers, validators have staked over 4.2 billion SUI tokens as of Wednesday. Validators are responsible for verifying new transactions and keeping the network secure in a Proof of Stake (PoS) blockchain network.
According to CoinGecko, SUI’s main competitor, Aptos (APT), has a market capitalization of about $2 billion and a fully diluted valuation of nearly $10 billion. The SUI token’s price surged to $2 at its trading debut, which led some Crypto Twitter observers to criticize the very high valuations.
Arthur Cheong, the founder of DeFiance Capital, tweeted that people question why venture capitalists continue to fund new layer 1 blockchain protocols with billion-dollar valuations. He noted that as long as these projects can launch with an FDV of $10 billion or more, even in a difficult market, the trend of funding will continue.
Arthur Cheong, founder of DeFiance Capital, stated that most founders of previously hyped layer 1 blockchain protocols are now billionaires, despite their blockchains achieving little real traction.