Solana vs Sui Network: The Rise of an Alternative Layer-1

Solana vs Sui Network- How Sui’s Performance is Outpacing Solana: Insights from K33 Research

Solana vs Sui Network– Analysts from K33 Research speculate that while Solana currently stands as the leading alternative layer-1 network next to Ethereum, the Sui Network may soon challenge that position.

Sui’s Impressive Performance in the Market

In a research note dated September 18, K33’s DeFi analyst David Zimmerman highlighted Sui’s remarkable performance compared to Solana. He pointed out that while SOL/ETH has risen by 6% since the beginning of August, SUI/SOL has surged by an impressive 115% in the same timeframe.

The Impact of Recent Developments

Zimmerman acknowledged that Sui’s recent success could be attributed to market mispricing. However, he asserted that Sui possesses the essential elements to support its upward trajectory. A significant factor contributing to Sui’s rise is the announcement by Circle, a stablecoin issuer, regarding the launch of its native USD Coin (USDC) on the Sui network, signaling increased adoption from key industry players.

Technical Advantages of the Sui Network

Sui’s architectural capabilities set it apart from its competitors. With a theoretical maximum of 297,000 transactions per second (TPS), Sui greatly exceeds Solana’s theoretical maximum of 65,000 TPS. However, it is crucial to differentiate between theoretical limits and practical performance; while Solana’s real TPS peaks around 3,000, Sui reached a maximum of 854 TPS in July 2023, according to CoinGecko data.

Challenges Ahead: Token Supply Issues

Despite Sui’s technological advancements, Zimmerman pointed out a significant hurdle affecting its long-term price potential: token supply. Launched in May 2023, Sui has only 27% of its total token supply in circulation. This low float combined with high fully diluted value (FDV) tokenomics raises concerns about possible sell-offs during future token unlocks. In contrast, 80% of Solana’s total supply is currently available.

Upcoming Innovations: SuiPlay0x1 Gaming Console

Another bullish development for the Sui network is the anticipated release of the SuiPlay0x1 handheld gaming console, developed by Mysten Labs. Set to ship next year, this console will feature a native Eternals non-fungible token (NFT), potentially offering exclusive rewards for users. Zimmerman drew a parallel between Sui’s console and Solana’s Saga mobile device, which provided users with substantial airdrops that surpassed the console’s upfront cost.

Sui’s Position in the Competitive Landscape

While Sui shows potential to gain ground on Solana in the layer-1 (L1) arena, Zimmerman emphasized that Ethereum remains safe from competition in the near term. The market largely continues to view L1s other than Ethereum as ‘Ethereum competitors, he noted. In a post-U.S. spot ETH ETF environment, Ethereum is perceived as being in a category of its own.

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