Solana has long been seen as the top alternative to Ethereum in the layer-1 (L1) blockchain space, but new research suggests a fresh contender is emerging—Sui Network. Analysts from K33 Research believe Sui could challenge Solana’s position, thanks to its promising performance, unique architecture, and a highly anticipated gaming console release.
In a research note from September 18, K33’s DeFi analyst David Zimmerman highlighted Sui’s significant price surge compared to Solana. While Solana (SOL) gained 6% against Ethereum since August, Sui (SUI) saw a staggering 115% rally against Solana during the same period. Despite acknowledging that some of Sui’s rise may be due to market “mispricing,” Zimmerman argued that Sui has the technical and strategic potential to sustain its momentum.
Circle’s USDC And Growing Adoption
One key development supporting Sui’s ascent is the recent announcement from stablecoin issuer Circle. On September 17, Circle revealed plans to launch its USD Coin (USDC) on the Sui network, signaling increasing support from major players in the industry. This endorsement not only boosts Sui’s credibility but also strengthens its growing ecosystem.
Zimmerman emphasized that Sui’s technology could pose a real challenge to Solana. With a theoretical maximum of 297,000 transactions per second (TPS), compared to Solana’s 65,000 TPS, Sui shows impressive potential. However, real-world performance is what ultimately matters, and Solana’s actual TPS hovers around 3,000, while Sui’s peaked at 854 TPS in July 2023, according to CoinGecko data.
“Sui has delivered some of the most impressive tech in the space,” Zimmerman remarked. “But we have yet to see it consistently outshine Solana in practice. That could change if Sui continues to attract more users and capital.”
Token Supply Concerns
While Sui’s technology and adoption look promising, Zimmerman highlighted a major hurdle that could impact its long-term price action—token supply. Launched in May 2023, Sui has only 27% of its total token supply in circulation, leaving the market vulnerable to potential sell-offs when future token unlocks occur. In contrast, Solana has 80% of its token supply already circulating, which provides a more stable environment for investors.
Another bullish factor for Sui is the upcoming release of its handheld gaming console, SuiPlay0x1, developed by Mysten Labs. Expected to launch next year, the console will come with a native NFT called “Eternals,” which could offer exclusive rewards to users. Zimmerman compared this to Solana’s Saga mobile device, which distributed airdrops that exceeded the cost of the device itself. Such innovations could give Sui an edge in capturing the gaming and Web3 market.
Also Read: Sui Surges 3.25% With USDC Integration – Is $1.50 The Next Target For This Crypto?
The Bigger Picture – Ethereum Still Untouchable
Despite Sui’s potential to rival Solana, Zimmerman noted that Ethereum remains in a league of its own. “The market continues to view L1s other than Ethereum as competitors to Ethereum, but in reality, Ethereum is beyond competition in the post-US spot ETH ETF world,” he stated. Ethereum’s dominance is secure for now, but the battle among alternative L1s is far from over.
Sui’s success lies in its ability to build a robust ecosystem and maintain steady performance. With technical advantages, key partnerships, and innovative products like the SuiPlay0x1 console, it’s clear that Sui has the potential to emerge as a major player in the ongoing L1 wars. Only time will tell if it can truly dethrone Solana.
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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