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SUI could benefit from the Cryptocurrency rally in the remainder of the year.
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Unlike other crypto assets, SUI is inflationary.
The SUI cryptocurrency has started October standing out in the market. Its price registers the largest monthly increase of the main 100 crypto assets and has just entered the list of the 20 with the highest capitalization. In this way, it exhibits positive signs for the last quarter of the year, a period in which high volatility is expected.
Precisely, Its price has experienced an increase of 138% during the last monththe highest performance of the 100 most capitalized crypto assets. With this performance, which can be seen below, it is currently trading at 1.8 dollars (USD).
Cryptoassets that appreciated the most in the last month of the 100 with the most capitalization. Fountain: CoinMarketCap.
In this way, SUI is now 13% from the historical maximum price it registered seven months ago, which was USD 2.1. This can be seen in the following graph. Therefore, recovering such a level could be the market’s next objective if demand remains solid.
SUI price in recent months. Fountain: TradingView.
Grayscale, investment fund issuing company, added SUI to the list of 20 assets from various cryptocurrency sectors that, in their opinion, They have high potential for the fourth quarter of the year. This play takes place after will throw a product that invests in the token, facilitating its adoption.
“Unlike Bitcoin, which dominates the cryptocurrency sector, Ethereum faces significant competition within the cryptocurrency sector from smart contract platforms,” notes Grayscale. Regarding the latter, he indicates that a series of platforms have gained ground this year, such as Sui.
For Grayscale, Sui can be considered an example of high-performance infrastructure for smart contracts. It distinguishes that two months ago it underwent an update that improved its transaction speed by 80%, surpassing that of Solana. “This has led to a recent surge in online adoption,” he explains.
Unlike other smart contract networks that have been on the market longer, Sui was launched just over a year ago. This, which was developed as a layer 1 (L1) by former Meta developers, debuted in May 2023.
“A price of between 3 and 4 dollars is expected this October for SUI,” commented today a pseudonymous trader holdersignals on the social network X. “It will be the best L1 like SOL in the last bullish rally,” he considered. Likewise, the Altcoin enthusiast known as ElonTrades revealed that its target for said token in the current cycle is $16.9.
However, it should be taken into account that this token It is inflationary, which means that its issuance will continue to rise, generating a growing supply that makes it difficult to increase its price. Currently, there are 2.7 billion SUI in circulation, which is just 27% of its supply.
Therefore, It will be vital for SUI use cases to grow so that it can solve the supply pressure of the release of its supply. Otherwise, no matter how much bullish price projections abound, demand will not be enough to materialize them.
Circle drives SUI adoption
Two weeks ago, the company Circle announced the launch of its stablecoin USD Coin (USDC) in Sui, something that may motivate its adoption. “The biggest winner here could be Sui,” said investor Lark Davis.
“As the new kid on the Blockchain block, Sui is an L1 that aims to be a powerful and secure platform for the development of other Web3 applications,” Davis elaborates. Therefore, he believes that initiatives like Circle’s can be key to its growth.
Besides, The macroeconomic scenario is currently better positioned for risk marketsif they do not grow recession risks. The United States and China cut interest rates increasing liquidity in the economy, at a key time for investments.
With the arrival of October, the last quarter of the year begins, a period that is usually bullish for the markets. This is due to the beginning of autumn in the northern hemisphere, a season in which economic activities are reactivated after the summer holidays. Furthermore, this also happens during elections in the United States.
In this sense, as long as its network continues to grow, SUI demand could benefit of this scenario and the US presidential elections scheduled for November.
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