Sui, a rising star in the Layer-1 blockchain space, has grabbed headlines with a spectacular 148% price surge in the last week. This impressive rally, which saw Sui trade at $1.12 on Monday morning, significantly outshines most other top 100 altcoins. However, questions linger regarding the token’s long-term trajectory, particularly in the face of ongoing token unlocks.
Unlocking The Mystery A Gradual Release
In May, Sui unlocked a significant portion of its token supply – 1.04 billion SUI, representing 10.4% of the total 10 billion. This initial release constituted 39% of the market cap at the time. Subsequent unlocks have been smaller but consistent, with 0.87%, 0.86%, and 0.84% of the max supply released in June, July, and August respectively. This scheduled unlocking process will continue on a monthly basis, gradually diminishing in size until 2023.
Real Vision founder Raoul Pal, a prominent figure in the crypto space and coin Foundation member, believes Sui has the potential to surpass Solana (SOL) in the long run. However, he acknowledges that Sui needs to demonstrate its mettle by decisively breaking Solana’s downtrend. While acknowledging concerns about token unlocks and valuation, Pal emphasizes the importance of demand outweighing supply in the long term. He argues that the current negative narrative surrounding Sui might be overshadowed by its recent price action.
Also Read: Solana (SOL) Stumbles as Solana Killers Gain Traction – SUI, NEAR and APT Eyeing Dominance
Is the Price Action Sustainable?
While Sui’s recent surge is undeniably impressive, it’s important to maintain a cautious perspective. The token’s price remains volatile, and future unlocks could potentially impact its value. However, Pal’s point about demand holds weight. If coin can attract strong user adoption and build a robust ecosystem of applications, it has the potential to overcome these hurdles and solidify its position in the competitive Layer-1 landscape.
Only time will tell if coin can fulfill its potential and become a major player in the blockchain ecosystem. The continued development of its network and the success of applications built on coin will be crucial factors to watch. With its recent price surge and the backing of influential figures like Pal, Sui has undoubtedly captured the attention of the crypto community. The coming months will be telling as Sui navigates its token release schedule and strives to establish itself as a leading Layer-1 blockchain platform.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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