Last week, the high-cap section produced 3 winners. Sui (130%), Helium (60%), and Bittensor (50%).
We have 2 of them in our portfolio! But what makes Sui special? There are many reasons, including its high-quality fundamentals, team, investors, etc. But a few other interesting reasons emerged recently.
#1: Grayscale involvement
Grayscale announced two new crypto funds that invest in the native tokens of Bittensor Protocol (TAO) and Sui last week. This triggered massive fomo among investors, and the rally happened. But is Grayscale that important for the SUI price action? The short answer is NO.
Grayscale has only managed to accumulate $1M in the Grayscale Sui Fund yet. $1M buying pressure can NOT push SUI 80%. So, we can assume influential whales are buying SUI.
#2: Substantial OTC Bids
Whales have been accumulating SUI. At the beginning of the bull run, the rally was led by Injective (INJ).
- It had excellent tokenomics
- Alternative to Ethereum in DeFi
- Excellent marketing and project onboarding
- Successor to failed Luna
So, we can assume that a similar coin will lead the second phase of the bull run. SUI ticks all the boxes.
#3: Excellent Tokenomics
- 52% supply will be allocated after 2030
- Investors hold 16.6%
- The team holds 6%
#4: Vesting
- The team and investor vestings started in May 2024
- Each month, around $80M worth of tokens are unlocked
#5: Sentiment
- Sui is slowly taking over the meme space from Solana.
- Ever since Solana became a top L1, the growth rate of SOL has been slow and limited. SOL can still do 5X in this bull run, but it is still not seen as a reliable chain.
- The price action helped SUI massively
- SUI did a full reset of the bull run. It dumped to the All Time Low levels, and whales saw this as the perfect opportunity to load up SUI bags
- Thanks to this sentiment, the lending protocols added over $132M to the TVL in one week
- This TVL was previously achieved when SUI was at its ATH of $2.1. This means the increase is mainly because of stablecoins inflow. This will largely benefit the SUI ecosystem in the coming months.
- Excluding Bitcoin, Sui is the second largest non-EVM L1 after Solana.
- This project also has an impressive Marketcap/TVL ratio. It shows how undervalued a chain is compared to the real activity in the chain.
- Solana marketcap is 14 times its TVL. Ton’s marketcap is 26 times its TVL. While SUI is merely 4 times.
- To understand the full impact, this number is 6.5 for Ethereum and 17 for BNBChain.
Conclusion
If we take the current Mcap/TVL ratio of Ton and the All-Time High ratios, we can assume the bull top number is usually 30 for an L1. This means the current 2B mcap shall be 2B*30 = $60B at the bull market top.
The road to this $60B? The 5 Reasons we explained above. This also implies a 30X for this token from the current price.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
