Summary:
Bitcoin has surged 146% year to date and recently hit $108,000.
Another top cryptocurrency, Sui (CRYPTO: SUI), is up 430% year to date.
Sui launched in May 2023, emerging from the crypto winter.
21Shares' report suggests Sui could be a Solana killer, indicating a $68 billion market opportunity.
Sui is currently trading around $4.50, facing challenges at the $5 psychological barrier.
The performance of Bitcoin (CRYPTO: BTC) this year has been nothing short of extraordinary. It's now up about 46% since the election on Nov. 5, and 146% year to date. Best of all, Bitcoin recently broke through the $100,000 price level to hit another all-time high just north of $108,000.
But what if I told you there is another top cryptocurrency that is up more than 120% since the election, and 430% year to date? That cryptocurrency is Sui (CRYPTO: SUI), which now ranks 14th among all cryptocurrencies with a $13 billion market cap.
If you’ve never heard of Sui, that’s understandable. The cryptocurrency only launched in May 2023, just as the market was emerging from the crypto winter of 2022. Its launch flew under the radar of investors due to the aftermath of the collapse and scandal of crypto exchange FTX in November 2022.
Fast-forward to August 2024. That’s when 21Shares — the company that partnered with Cathie Wood's Ark Invest on the launch of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum (CRYPTO: ETH) — released a research report on Sui, detailing all of its unique characteristics. For example, it described how a new technical upgrade made Sui faster than any other top blockchain by a substantial margin. It pointed out how Sui was rapidly growing in terms of total value locked (TVL), a key metric indicating the relative strength of a particular blockchain.
The title of the report ("Is Sui a Solana (CRYPTO: SOL) Killer?") was provocative for crypto investors. It suggested that Sui had the technological chops to take on Solana, which now ranks as the fifth-largest cryptocurrency. For several years, Solana has been positioned as the next Ethereum, so Sui being seen as a potential Solana killer is significant. In fact, 21Shares suggested there might be a $68 billion market opportunity for Sui if it can compete with Solana successfully.
However, my primary concern with Sui is that it may be overheating. Like Bitcoin, it is smashing through all-time high after all-time high. Currently, Sui is trading at about $4.50 after briefly testing the $5 price level. For crypto traders, $5 represents a psychological price barrier similar to the $100,000 level for Bitcoin. It took Bitcoin a while to break through that level, so Sui may face challenges breaking through the $5 price level by the end of this year.
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