Sui Network (SUI) has made waves in the crypto market, positioning itself as a “Solana (SOL) killer” or “the next big thing like Solana.” However, SUI’s price rise appears to be following high social volume, which is currently mostly negative.
Finbold extracted the bonus data from Sentiment‘s SunBase Pro trending coins on August 16. Notably, SUI is the most trending cryptocurrency with 48.92% negative and 38.13% positive sentiment.
Among the criticisms, commentators mentioned the high fully diluted value (FDV) of the token, as well as concerns about incoming unlocks from vesting contracts. On the other hand, people praised the Move language and the efficiency of Sui transactions with fast finalization and low fees.
Fully diluted value refers to the projected market capitalization of a cryptocurrency when all of its tokens are in circulation. In fact, Sui Network still has less than 26% of its maximum supply circulating, with high projected supply inflation.
SUI Price Analysis
Despite the prevailing negative sentiment, technical indicators remain slightly bullish, suggesting a possible short-term price rally. At the time of writing, SUI is trading at $0.825, up 6.16% year-to-date, having fully recovered from its peak of $2.09.
Is SUI still the ‘Solana killer’?
In this context, Web3 researcher and developer Sandra Leow shared a few thoughts about X regarding SUI on August 15. First, the analyst began to wonder whether Sui was “still a Solana killer?” Leow turned to her Web3 Intelligence platform for data, KaitoAI.
According to Sandra, Sui saw an influx of positive sentiment in early August, reaching its highest positive level since launch. On that note, Sui’s sentiment index rose from 0.34 to 2.34 by August 7.
However, the most notable jump was in SUI’s attention share, from 0.08% on August 6 to 0.66% on August 9, when the token price also rose from $0.53 to $0.83. Interestingly, on the same day, Raoul Pal wrote about Sui being “the next big thing after Solana,” as reported by Finbold.
The attention share peaked at 2.18% three days later, on August 12. This is relatively high for a project with Sui’s market cap, considering SOL’s is between 6% and 8%.
Currently, Sui’s momentum seems to have cooled, but so do all other cryptocurrencies. The market has seen a crash caused by the sell-off in Bitcoin (BTC) and Ethereum (ETH), which has increased the bearish sentiment.
From a technical analysis perspective, the Solana killer could regain momentum if Sui maintains its current price support around $0.80 while aiming for higher gains. However, this short-term gain would still need to overcome medium- to long-term tokenomics that could hold it back.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
