As the crypto market regains its color, some altcoins stand out with remarkable performances. SUI is one of them, posting a remarkable performance of +70% over the last 3 months. What are the potential reasons behind such an increase?
Is SUI Cryptocurrency Headed Towards a New ATH?
In recent days, the crypto market has recovered, particularly following last week's announcement by the United States Federal Reserve (FED) that it would lower its key rate by 50 basis points (0.5%).
Although some doubts still persist about the upcoming macroeconomic figures, some altcoins have already drawn enough strength to seek remarkable performances. This is the case of the SUI token, which displays an honorable performance of +65% over the last 14 days.
Over the last 3 months, it has posted the 2nd best performance in the top 100 just after the AAVE token.
SUI is the native token of the eponymous blockchain, which operates in Proof of Stake (PoS) and is developed by Mysten Labs, a company founded by former Meta engineers.
👉 Our analysis and opinion on the Sui blockchain
The recent price performance of the SUI token puts the project in the 22nd position among the most capitalized cryptos, with a market cap of over $4 billion. The SUI token is currently 30% below its all-time high (ATH) price but its capitalization is already at new records. Indeed, SUI tokens are gradually being issued, so there are more SUI tokens in circulation than at its previous ATH. This is called token unlocks, so currently less than 3 billion tokens are in circulation out of the 10 billion in total.
The Sui blockchain’s total value locked (TVL) also hits new records at nearly $900 million:
Total Value Locked in the Sui Blockchain
After a severe retracement that began in May and a bottom In August, Sui's TVL hits new records.
What are the reasons for such enthusiasm?
Although the reasons for such a performance are not clearly linked to any particular news item, there are some avenues to explore.
First, asset manager Grayscale recently announced the launch of a new investment fund indexed to SUI. This news, reflecting the confidence institutional investors have in the project, caused the token to surge in value over the next 24 hours.
The day after the news, the SUI token was trading at over $1.03, which had not happened since last June.
At the same time, since Grayscale's announcement, active addresses on the Sui blockchain have been increasing significantly, as this graph shows: 
Evolution of the number of active addresses on Sui
Active addresses are thus clearly increasing, with a peak reaching 1.6 million addresses on September 18.
More recently, Jeremy Allaire, CEO of Circle, announced the upcoming launch of USDC, the 2nd most capitalized stablecoin on the market, on the Sui blockchain.
These two pieces of news have certainly piqued investors' interest in the SUI token of the eponymous blockchain. However, other, more exotic reasons could also explain the current craze around this cryptocurrency.
✅ Find our recap so you don't miss any of the crypto & economic news this week
Indeed, on the sidelines of the TOKEN2049 event taking place in Singapore, a side event named ” Sui Builder House » was organized, specially dedicated to the Sui blockchain.
During this event reserved exclusively for “ builders “, Georgios Vlachos, Axelar's co-founder announced the upcoming arrival of its protocol on Suiinitiating increased interoperability for the Sui blockchain.
Moreover, Sui recently launched the opening of pre-orders for its portable consolethere ” suiplay0x1 “, which is expected to be released in 2025. Although little information is available about it at this time, Sui clearly announces its intentions to play a leading role in the adoption of Web3 gaming.
Sources: Sui official website, Artemis Terminal
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
67 articles
