Sui token price has done well this week even as other cryptocurrencies plunged. The crypto token surged to a high of $1.2565 on Saturday, its highest point since May 1st last year. It has jumped by more than 250% from the lowest point in December. This makes it one of the biggest new cryptocurrencies in the world.

Suiswap gaining momentum

Sui is a relatively new blockchain network that was launched in 2023 to challenge other networks like Ethereum, Solana, and Cardano. Its goal is to supercharge the Web3 industry by having a platform with a high throughput and low transaction costs.

Sui’s network has been growing rapidly in the past few months, which explains why its token has reached a market cap of more than $1.39 billion. This makes it one of the biggest cryptocurrencies in the world.

One way of looking at a blockchain’s growth is the size of its Decentralized Finance (DeFi) ecosystem. In this case, Sui has grown quickly, with its total market cap surging to a high of $293 million. The biggest DeFi dApps in the ecosystem are NAVI Protocol, Cetus, Scallop Lend, and FlowX Finance.

Suiswap, an upcoming DeFi exchange is also gaining traction. For example, the Suiswap token price has jumped by more than 52% in the past 24 hours and is nearing its all-time high. Its total market cap has jumped to more than $41 million.

Sui is also seeing traction in the fast-growing industry of decentralized public infrastructure (DePin). In a statement, the developers announced a partnership with Karrier One in a deal that will create a leading decentralized network in the world.

DePin is one of the fastest-growing industries in the world. For example, Helium, a leading platform in Solana’s ecosystem, has continued to gain market share. Similarly, Hivemapper, a network aiming to disrupt the mapping industry has also mapped millions of kilometers in the past few months.

Sui growth challenges remain

Still, Sui faces several challenges ahead. The biggest challenge is that it is competing with many blockchains that are all seeking to gain market share in the crypto industry. Ethereum, Solana, Avalanche, and Cosmos are some of the most notable blockchains. Beating these ones will be difficult

For Sui investors, there is also the challenge of token dilution. Like other proof-of-stake tokens, Sui has only released a limited number of tokens. In this case, it only has 1.1 billion tokens in circulation against a total supply cap of 10 billion.

All this means that the token will have numerous token unlocks in the coming years. These token unlocks usually lead to dilution of existing investors, which is a bad thing. It is compared to when a company issues new shares and dilutes existing investors.

Sui price forecast

Turning to the daily chart, we see that the Sui crypto price has gone parabolic in the past few months. This rally happened even as cryptocurrencies like Bitcoin, Litecoin, and Solana plunged after the spot Bitcoin ETF approval. 

The token has risen above the 50-day and 100-day Exponential Moving Averages (EMA). It also jumped above the key resistance point at $0.9418, the highest point on January 4th. Therefore, I believe that the coin is getting a bit overbought, meaning that it will likely retreat and retest the support at $0.9420. 

By Crispus Kanyaru

With a keen eye for market trends and a knack for translating complex financial concepts into engaging narratives, Crispus has established himself as a trusted voice in the world of finance. His work has graced the pages of esteemed publications like Benzinga, Forbes, Invezz, and Banklesstimes, reaching a diverse audience eager to navigate the ever-evolving financial landscape. Crispus's journey began with a deep curiosity about the forces shaping the global economy. This natural inquisitiveness led them to pursue a degree in finance and CPIA, equipping them with a solid foundation in financial theory and analysis. But Crispus knew that knowledge alone wasn't enough. He craved to bridge the gap between dry data and real-world experiences, to make finance accessible and relatable to everyone.