SUI is one of the best performers following the Federal Reserve funds rate cut by 50 basis points on 18 September. At the time of writing, SUI has gained by 13.9% within 24 hours, showing much momentum. Also, its price has surged by 50.2% during the last 30 days. However, at present SUI is in a sideways channel as it is fluctuating between $1.31 and $1.39 as the following graph indicates.
Now, the market anticipates SUI to rally further. However, looking at its current price action its value may drop as well. Currently SUI is trading at $1.34 SUI/USDT at Gate.io. The other cryptocurrencies that have performed well after the announcement of the Fed rate interest rates cut are bitcoin, Ether, Near and Fantom. Bitcoin has surged above $62,000 while NEAR gained by 13% within the same period to trade at $4.48 NEAR/USDT. On the other hand, the Fantom price has increased by 12%.
The surge in prices of most cryptocurrencies may indicate a possibility of the onset of the altcoin season. Already, we have noticed that the prices of several altcoins have risen by more than double the percentage of the bitcoin rally. For example, within the past 24 hours the price of bitcoin has increased by 6% while that of SUI has soared by 13.9%. This shows that investors are more inclined to buying altcoins than bitcoin. Santiment, a crypto analytic firm, said that many altcoins may break out which could increase their cumulative market dominance. Santiment said, “Altcoins are showing signs of a breakout following the US Fed’s decision to cut interest rates by 50bps. Fantom (+11%) and Sui (+8%) are notable assets seeing mini surges.”
Also, Santiment has reported that there has been an increase in whale buying activity for some digital assets.
Despite the rally following the news of the Fed rates cut Santiment has warned that the current bullish momentum could be short-termed. This is because the crowd sentiment towards the cryptocurrencies may change within a short period.
SUI’s Future is Bright
The current SUI rally has shown that it has much potential on the market. And there are several developments that can help push its price up. For example, Circle, the issuer of USDC, is going to expand its stablecoin capability to SUI blockchain through a Cross-Chain Transfer Protocol (CCTP). That will increase USDC interoperability with other blockchains which will increase its adoption. SUI is a layer-1 blockchain known for its high throughput, security and scalability. The integration with USDC will increase SUI’s liquidity and expand its DeFi operations. After the announcement of the USDC-Sui integration the coin price rose above $1. With the current development analysts predict that SUI will surpass $1.50 soon.
Apart from the integration with USDC, SUI has forged a partnership with MoviePass, a subscription-based movie ticketing service. This move will help to decentralize the movie industry. For example, this alliance will provide tools for producers to improve the quality of their services. At the same time, that will empower the fans to have input into the movie creation process. Posting on X Sui Network said, “We’re partnering with MoviePass to help decentralize the film industry—empowering movie producers with innovative tools and enabling fans to influence how their favorite films come to life. And that’s just the start! MoviePass will soon accept native USDC for subscription payments.”
SUI is also performing much in terms of network activity. For instance, data on Defilama shows that SUI’s total volume locked has been rising since early August. Recently, it reached a peak of $738 million.
As the picture shows, the SUI total value locked started rising in August after it had a dip from June. The rise in the TVL shows a healthy state of the network as it indicates the growth of the ecosystem. That means the protocol may attract more funds. It also shows that the network’s DeFi activity may increase in the near future.
Understanding SUI
SUI is a layer-1 blockchain that enables developers to deploy their smart contracts there. It allows the developer to define custom digital assets to suit their preferences. The Sui Network supports various use cases that include GameFi, decentralized finance and social networking.
SUI is a utility token of the ecosystem as it is used for paying transaction fees. The users can stake their SUI to enhance the network security and integrity. In return the stakers receive staking rewards. In addition, the SUI holders participate in decision making related to developmental issues. Due to its high utility and the efficiency of the blockchain, SUI is a good investment asset. However, like many other cryptocurrencies its price is very volatile and caution should be exercised when investing in it. Investors can purchase SUI on different centralized and decentralized exchanges. For example, Gate.io is a secure crypto exchange to buy and hold SUI.