SUI has recently attracted a lot of interest and has reached the peak of its development. It ended the week with its highest price of $2.30 and ranked above major altcoins such as Polkadot (DOT), therefore ranking among the top 15 cryptocurrencies. Among those who support SUI, this achievement has inspired hope as they believe it will become a major competitor in the market.
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DeFi noted SUI price increase and total value locked (TVL) of $1 billion. The coin is rated higher than Avalanche (AVAX) and Polygon (MATIC). Investors are taking note of SUI’s growing position in the DeFi market, with SUI projections showing a continued positive trend and colossal growth 240% increase in the next three months,
$SUI passes $DOT. Congratulations to whoever listened to me. pic.twitter.com/FtU5vk8f8M
-MartyParty (@martypartymusic) October 13, 2024
At the time this article was written, SUI was traded at $2.04, fell 4.3% in the last 24 hours, but sustained 8.7% in the last seven days, data from Coingecko shows.
Evaluation queries arise
The rapid increase in EUI has sparked enthusiasm among many, but it has also raised questions. In fact, some analysts question whether there is a justification in the token’s prevailing market capitalization for its real fundamentals.
The rising value has sparked a debate because people are trying to measure SUI’s market capitalization to find underlying problems. Such an occurrence is not uncommon for coins and even tokens in the rapidly expanding corner; however, it also tends to raise some doubts in potential buyers.
Insider selling is another concern. Significant transactions from a core wallet during the token’s recent rise have raised questions about its price sustainability. Divestment during a price rally can indicate internal insecurity, causing investors to doubt long-term prospects.
SUI market cap currently at $5.6 billion. Chart: TradingView.com
Fully Diluted Valuation Comparison
The complexity of SUI’s current situation is compounded by its Fully Diluted Valuation. SUI’s FDV is $1.2 billion, much lower than Solana’s $4.7 billion. Several market experts claim that Solana may be misvalued because Solana’s fully diluted valuation is less than a third of Ethereum’s. This has led some to conclude that SUI is overvalued at the moment.
Such a comparison also raises the issue of possible mispricing in the market, which makes it necessary for investors to weigh the pros and cons before getting involved. There is currently competition between several cryptocurrencies and knowing the evaluation of such projects in relation to other tokens makes us better understand each token.
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What’s next for SUI?
Despite concerns, the anticipated development of SUI in the near future is optimistic. Examination of price movement indicates that an upward trend will occur, as estimates show that there will be a substantial increase in the market size within a few months. Over the next three months, the price of SUI is expected to rise by 244%, which attracts many hopeful investors.
Investors are advised to be careful. Considering the high volume of insider sales and concerns about valuations, the future may not be as rosy as projected. Monitoring market dynamics and technical analysis will be very important to address the risk that accompanies the rapid increase in EUI.
Boxmining Featured Image, TradingView Chart