Sui has emerged as a strong competitor to Solana and is set to challenge its position as the leading L1.
So far, Sui has outperformed in terms of market growth and might even have a higher throughput.
The ecosystem is also looking towards a USDC launch on its platform, as well as a new gaming console.
However, the total unlocked supply of $SUI tokens poses a major risk for crypto investors.
Overall, the battle for dominance among L1s continues with Ethereum remaining unchallenged for now.
Solana was one of the biggest competitors to Ethereum. From 2020 until today, the network has earned a name for itself as one of the most scalable blockchains and the ultimate "Ethereum Killer."
However, another competitor has emerged to challenge Solana as an alternative Layer-1.
According to K33 Research, this competitor is SUI.
Let’s see all of the things that make this new L1 strong enough to challenge one of the top blockchains on the market.
K33 research made these speculations in a new note on Thursday this week.
Simply put, Sui's technical abilities, its rapid growth, and upcoming upgrades make it poised to become one of the strongest chains on the market.
The analytics platform even describes Sui as Solana's "fiercest competitor."
But can this new kid on the block take out one of the top dogs?
Despite Solana's slow start to the year, Sui has outperformed it in terms of market growth.
The report from K33 Research highlights that while the SOL/ETH pair rose by around 6% in August, SUI/SOL is up by an impressive 115%.
This shows great growth on Sui's price despite the ongoing market-wide bearishness.
One of Solana's most notable features is its high throughput.
From the start, Solana has been marketed as one of the fastest blockchains on the market, with theoretical TPS (transactions per second) speeds hitting a high of 65,000.
However, a lesser-known fact is that Sui vastly outstrips Solana with a maximum throughput of 297,000 transactions per second.
Fastest blockchains
It should be noted, though, that TPS differs from real-world performance.
This said, according to CoinGecko, Solana's highest TPS has increased to around 1,053, while Sui's peaked at around 854 in July 2023.
However, despite the blurry lines between them, Sui's internal workings are still seen as impressive within the blockchain space.
This new chain can still outshine Solana, given its ability to attract more users and liquidity.
Circle's (issuers of USDC) recent plans to launch its native stablecoin on the former's infrastructure further demonstrate this massive growth with Sui.
This shows that the network is seeing a new wave of investor interest and is now being recognized by key industry players.
If this trend continues, Sui is expected to soar in use cases and appeal soon.
In addition to the incoming stablecoin integration, the network is also set to launch a new handheld gaming console called SuiPlay0x1.
The console will be similar to the Play Station Portable and will be developed by Mysten Labs.
It is also scheduled to ship next year along with a native "Eternals" NFT that could offer users several rewards.
This is similar to Solana’s marketing strategy with its Saga phones, which sold out in mere weeks.
Interestingly, while Sui has been making strides in technology and strategy, its tokenomics are a major hurdle.
For example, according to Token Unlocks, only around 27% of its total supply of 10 billion tokens has been unlocked so far, leaving about 7.4 billion in its escrow accounts.
Unlocked supply of Sui
This creates significant risk for investors, considering how all 7.4 billion being released over the years could lead to a massive sell-off.
In contrast, Solana already has around 80% of its supply in circulation, which means it is more stable.
Ethereum remains unchallenged so far, with the main competition being in the battle among other L1 networks like Solana.
To carve out a niche for itself, Sui must continue to build on its real-world performance metrics and manage its tokenomics.
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