- Sui’s blockchain has seen the number of active addresses jump to over 1M.
- However, the total value locked (TVL) in its DeFi ecosystem has dropped to $13M.
Sui price has made a strong recovery in the past few months. After falling to a low of $0.511 on June 10th, the token has jumped by over 43% to the current $0.7326. Its market cap has jumped to over $485 million.
Sui volume rises
Sui is an upcoming layer 1 blockchain that seeks to be an alternative to other popular blockchains like Ethereum, Hedera Hashgraph, and Solana. The network has been used to build applications in industries like Decentralized Finance (DeFi) and Non-Fungible Tokens (NFT).
Sui has been growing at a fast pace in the past few months. In a tweet, the developers noted that they had raised over 1 million active addresses in less than 70 days. This makes it one of the fastest-growing blockchains in the world.
A likely reason is that the developers recently inked a partnership with Red Bull Racing, which is leading the current Formula 1 championship. This is an important partnership since Formula 1 has millions of fans around the world.
However, the challenge for Sui is that the total value locked (TVL) in its DeFi ecosystem has been in a downward trend. In all, the TVL in the ecosystem stands at $13.32 million, which is much lower than its all-time high of over $36 million. The biggest dApps in the ecosystem are Cetus, Turbos, FlowX Finance.
The challenge for Sui and other blockchains is that popular chains like Ethereum have captured a substantial market share in the industry. It controls the biggest DEXes in the industry like Uniswap and dYdX.
As I wrote last week, Algorand’s AlgoFi decided to shut down because of low market activity in the ecosystem. I believe that Sui and other blockchains will likely suffer the same fate.
Sui price prediction
The 4H chart shows that the SUI crypto price has been in a slow bullish trend in the past few days. This recovery coincided with rising volumes. Data compiled by CoinMarketCap shows that the volume jumped by 190% in the past 24 hours to over $453 million.
Sui price has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has continued rising. Therefore, the coin will likely continue rising as buyers target the next resistance point at $0.90.
