Up-and-coming finance-focused layer-1 blockchain protocol Sui (SUI) has been blasting higher recently, with the SUI price gaining 35% in the past seven days to hit $1.18, per CoinMarketCap data.
The surge in the Sui price comes as the blockchain experiences a massive surge in crypto asset inflows.
According to DeFi Llama, Sui’s total value locked (TLV) in smart contracts was last around $740 million, up $400 million from early August lows of around $340 million.
TVL refers to the USD-denominated value of crypto assets locked in smart contracts on a blockchain.
A rising TVL is a sign that a blockchain is benefitting from increased adoption.
Sui adoption is likely to continue surging. Circle’s native USD stablecoin, USDC, will soon arrive on the blockchain, substantially enhancing its utility for crypto users.
Per an announcement on X, Circle announced that Sui would soon be added to the Cross-Chain Transfer Protocol.
1/
We’re excited to announce that native $USDC and Cross-Chain Transfer Protocol (#CCTP) are coming soon to @SuiNetwork!
Explore what native USDC and CCTP will mean for Sui.https://t.co/ctP3iAXcgL— Circle (@circle) September 17, 2024
Macro could also be set to act as a tailwind for major cryptocurrencies, Sui included.
The Fed will kick off a new rate-cutting cycle today after lifting interest rates to multi-decade highs in 2023 to dampen surging inflation.
The Fed is expected to cut interest rates tomorrow.
The last time the Fed cut rates, Bitcoin went parabolic
If history repeats itself, the next 6-12 months are going to be insane.
h/t/ @milkroaddaily pic.twitter.com/GxNtThDDwS— Lark Davis (@TheCryptoLark) September 17, 2024
Markets are likely to see some short-term volatility amid uncertainty over whether the rate cut will be 25 or 50bps.
But the trend is clear – lower US interest rates and a more favorable liquidity environment are coming.
Assuming that coincides with a “soft landing” for the US economy (i.e., the economy avoids recession), this should be a good environment for risk assets.
So, how high could Sui go?
Is $10 Sui Price on the Cards?
With the Sui price convincingly back north of its 21 and 50DMA, a break above the key $1.20 resistance area could catalyze a return to yearly highs at $2.17.
That could mean near-term gains of as much as 2x for the crypto, making it potentially the best crypto to buy now.
A modest market cap of $3 billion also suggests plenty of room left for growth, assuming adoption continues to accelerate.
If Sui becomes a leading blockchain, as its advocates hope, it could reach a market cap in the $10s of billions.
A $10 SUI price is certainly a possibility.
That said, inflation could be a big problem for Sui. The crypto’s fully diluted market cap is close to $12 billion.
That means many more tokens will be hitting the market in the coming years.
Long-term investors need to be wary of this supply and whether the blockchain’s strong fundamentals justify buying.
Investors might want to consider investing in cryptos that launch with fairer tokenomics than Sui.
If they want exposure to 20x+ potential projects, they might also want to check out crypto presales.
One new project in the GambleFi space called Mega Dice (DICE) is gaining much traction.
Mega Dice is a new Telegram casino that is shooting to become a leader in the space.
Its bumper presales and strong userbase suggest it’s making much progress.
Popular crypto presale analyst Michael Wrubel explains in the video below why he is bullish on DICE.
Meanwhile, fellow YouTuber Crypto Boy explains in the video below why he thinks DICE has 100x potential.
Those seeking exposure to the fast-growing GambleFi space should check out Mega Dice here.
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