positive data growth does not support the price of the crypto

Since its debut on the crypto market in May this year, the Sui blockchain has recorded excellent on-chain data, proving that it is one of the top infrastructures in the industry.

We are still far from the numbers of giants such as Ethereum, Tron, Binance Smart Chain, Arbitrum, Polygon and Optimism, which process hundreds of millions of dollars every day, but the path for SUI seems to be the right one.

However, despite the excellent performance of the crypto network, the SUI token is not performing as well as many expected and is still down -60% from the closing prices of the first week of trading on the crypto market.

Will SUI be able to break all-time highs in the next bull run?

We will find out in this article.

The Sui crypto network and the positive outlook for on-chain data

The SuI blockchain has shown its full value in recent months, recording record on-chain data and establishing itself as a respectable network in the crypto landscape.

Launched in May by the Mysten Labs team, made up of former Meta employees who had worked on the Libra cryptocurrency (a project that was later abandoned), SUI did not receive a great initial response from the crypto community.

After various criticisms regarding the lack of airdrop for the first users of the platform, who had contributed to the pre-launch phases, the chain went through a phase of decreasing its TVL from USD 36 million in May to USD 12 million in July.

Since August, however, things have taken a turn for the better and the network now has more than $100 million in assets: that’s an 830% growth in just four months.

More recently, trading volumes have also started to increase: since October, trader movements have been huge, and two days ago they reached the highest daily value ever transacted with a total of $30.57 million.

Consider that at the end of July this figure was only $580,000.

The credit for this goes mainly to DEX Cetus, which is the tenth largest decentralised exchange in the crypto sector by market volume.

This puts SUI in the top 25 L1 blockchains in DefilLama‘s ranking, ahead of projects such as Aptos, Near, Fantom, Algorand, Tezor, Eos, Ronin and Mantle.

However, with an extremely high LTV, there are still many infrastructures that boast a more thriving decentralised application ecosystem with more developer activity.

The road to breaking into the top 10 most popular crypto networks still seems a long one, but if SUI’s winning streak continues, we could be celebrating this milestone sooner than we think.

Among the network’s successes over the past few months is a very interesting statistic regarding stablecoins: the USDC resource bridged on SUI has surpassed $100 million and is poised to become a central currency in the network’s decentralised exchange structure.

Furthermore, since its launch, SUI has recorded a total of 1.6 billion executed transactions, 7.6 million active accounts, 12.8 million NFTs, 2,500 minted tokens and 198 million objects.

All these data underline the growing confidence of investors in the decentralised network technology, which will soon play a major role in the Defi and Web3 markets due to its security and scalability characteristics.

Finally, the ecosystem has a native social authentication function (ZkLogin) for access to dapps via Google, Twitch and other providers, which should allow it to capture a larger share of the market among newcomers than its competitors.

On-chain data does not reflect the price of crypto SUI

As mentioned above, despite the excellent feedback from on-chain data regarding the activity of the digital infrastructure, Crypto SUI fails to take off and achieve the speculative success it deserves.

Trader pressure is keeping the SUI price firmly below parity with the dollar, a threshold that was breached at the end of May and has never been tested again on the chart.

Although the project’s blockchain is in the top 25 of the most LTV networks on the market, the SUI crypto doesn’t even make it into the top 75 of Coinmarketcap’s ranking of the most capitalised tokens, with a market value of just over $500 million.

Since the 19th of October, the coin has risen along with the rest of the crypto market, but has failed to outperform.

Prices, currently at $0.538 per unit, are still far from the $1.4 price at the end of the currency’s first day of trading on the Binance exchange platform.

We are also close to strong resistance around the $0.6 level which, if breached, will also have to contend with a very extended RSI that is unable to sustain a rally without a prior consolidation phase.

If this level is breached, SUI will have to overcome another hurdle in the $0.8 area before we can celebrate a return to $1 per coin. 

Unfortunately, on-chain data does not go hand in hand with speculation in the crypto financial markets, which take other information into account when valuing assets.

The SUI network is gaining ground by attracting capital into its own dapp, but in parallel the SUI crypto asset is not experiencing a similar rate of adoption.

The utility of crypto is limited to satisfying network consensus through staking and payment of gas fees, without venturing into other areas of particular interest to stakeholders.

However, it is important to remember that the long-term success of the currency is somehow linked to the growth of the infrastructure: even if the crypto SUI does not initially reflect the performance of the proof-of-stake network, it will certainly increase in value in the future if things continue in this direction.

During the next bull run, it is likely that the SUI will once again rise above the dollar in terms of price and explore new horizons.

However, all this is inextricably linked to the growth of the infrastructure and at least reaching the 500 million LTV threshold.