In light of the recent downward trends in the crypto market, the SUI blockchain token has stood tall and experienced an impressive 37% growth spurt in the last 30 days.
Naturally, this sudden spike in SUI token price has become a major surprise for many industry experts, with an unlikely coin emerging as a strong candidate to reach an all-time high valuation. But does the SUI coin have what it takes to reach the $1.5 valuation? Let’s discuss.
The SUI blockchain was announced in early 2022 and launched on May 3, 2023. Industry specialists and enthusiasts eagerly awaited this date since the SUI blockchain was shaping up to be a legitimate contender in the competitive blockchain mainnet sector.
The massive hype was understandable, considering that SUI Blockchain was being developed by former Meta employees who founded Mysten Labs. The purpose of Mysten Labs is to create a better decentralised digital landscape, and the SUI blockchain plays a central role in their ambitious roadmap.
The SUI blockchain creators promised a mainnet network to fix the everpresent congestion and delay issues. They also formulated an innovative payment processing method, allowing the network to process several transactions simultaneously instead of using a queue system like that of conventional blockchains.
Moreover, the SUI blockchain was developed with a proof-of-stake consensus algorithm, which is widely regarded as an optimal mechanism for swift payment processing.
The SUI crypto token was launched simultaneously with its namesake Blockchain network, providing on-chain liquidity, supporting the PoS consensus algorithm, and paying for the network gas fees. The announcement of the SUI token presale garnered a lot of attention due to the hype surrounding the entire project.
The SUI token supply was capped at 10 billion units, providing ample units to satisfy the gas fee payment needs on the platform and facilitate an active environment within the network.
It is possible to buy SUI tokens on most major platforms, including Binance and Coinbase. There are also convenient opportunities to swap SUI token using the Suiswap decentralised exchange built on the SUI blockchain network.
The initial price of SUI was quite competitive considering its massive coin pool, starting off at a $0.97 valuation. However, the early theories about the token’s oversupply concern have motivated investors to exit their positions or refrain from purchasing SUI.
In simple terms, the founding team behind SUI decided to present a roadmap of coin distribution that was too much and too fast, according to many experts.
Oversupplying the market with coins can potentially lead to value dilution, which is why many high-profile investors encouraged traders to hold off on the SUI investment.
Moreover, SUI’s price was also affected by its unfortunate arrival date. The half-year of 2023 was a rocky period for the crypto market, with the industry still suffering from the late 2022 crypto winter.
January has been similarly rocky for the market, with the flagship Bitcoin currency failing to achieve its 50K milestone and even going down to the $38,000 valuation in the current week. However, unlike the late 2023, the SUI token has made a substantial comeback. Let’s discuss how that happened.
To understand and appreciate the impressiveness of SUI’s price uptick, it is essential to mention that the current crypto market is volatile. The anticipated bull market has been postponed, with almost every major coin suffering 5-10% valuation losses in the previous two weeks. The general condition of the market is unfavourable to newcomer tokens, and it is general knowledge that when the crypto market suffers, new coins bear the brunt of the losses.
So, despite the short-term crypto bearish market in January 2024, SUI has managed to post an impressive 37% growth upside.
This value uptick can be attributed to the strong foundation that is built by the Mysten Labs team. The practical values and effortless scaling solutions of the SUI blockchain are being appreciated across the global crypto market. Many projects are planning to build their foundations on the SUI blockchain, and investors believe that this project is a no-brainer bet for 2024.
It is difficult to say if the SUI token will maintain this upward momentum or hit an inevitable plateau shortly. However, many experts believe that SUI is bound to reach a $1.5 valuation even before the crypto bear market is over.
Showing such vital signs of growth is an excellent sign for SUI, as the current crypto market cycle is bound to enter a bull run at some point near the half-year period. Of course, everything could go sideways, as the SUI token drop came unexpectedly in 2023 as well.
Despite successful financing rounds, the SUI token price trend in 2023 was quite jarring. So, traders should exercise caution and carefully monitor SUI’s progression in the coming weeks.