Sui’s technical capabilities and the upcoming release of a gaming console could position the network as a competitor to Solana, according to a report by K33 Research.
Analysts currently view Solana as the best alternative to Ethereum in the “L1 wars,” but suggest that Sui might challenge this perception over time.
“Since August, SOL/ETH has risen by 6%, whereas SUI/SOL has surged by 115% over the same period,” the report states.
Experts attribute this significant difference to a “correction of undervaluation,” acknowledging that the asset possesses the “necessary ingredients” for such growth.
The blockchain, developed by former Meta employees, boasts a throughput of up to 297,000 TPS, compared to Solana’s 65,000. Currently, peak actual values have reached 853 TPS versus 1504 TPS for its competitor. Sui also holds an advantage in transaction finalization time—0.48 seconds compared to 12.8 seconds.
“Sui has developed impressive technology. […] However, we have yet to see it surpass Solana in practice and in metrics such as average daily TPS,” the specialists noted.
They do not rule out this possibility in the future, provided there is continued user and capital influx into the ecosystem.
Another advantage is the anticipated 2025 release of the portable gaming console SuiPlay0x1, developed by the blockchain’s backing company, Mysten Labs.
Experts drew parallels between Sui’s device and the Saga smartphone by Solana. Owners of the latter participated in airdrops whose value significantly exceeded the phone’s cost.
“The team has much to offer in the competitive L1 landscape. The market largely continues to view networks other than Ethereum as its competitors,” the analysts pointed out.
A significant challenge for Sui is its tokenomics. The mainnet launched in May 2023, when tokenomics with low available supply and high FDV were “widespread.”
As a result, only 27% of Sui’s capitalization is in circulation, posing risks for current investors when new coins are unlocked in the future. In comparison, Solana has 80% of its supply in circulation.
Mysten Labs positions Sui as a general-purpose network with high throughput, fast and cheap transactions, and a user-friendly interface for Web3.
A distinctive feature of the project is its use of the proprietary programming language Sui Move—a modified version of Move, originally developed for the Diem project.
In July, Circle added support for the USDC stablecoin on Sui.
Previously, the Mysten Labs team tested offline transactions via mobile networks and radio waves.