Grayscale Research Highlights Sui’s Potential to Compete with Ethereum

According to a new report published by Grayscale Research, layer1 blockchain Sui may gradually gain market share from Ethereum $2,025 . The report emphasizes Sui’s high transaction volume and low transaction costs. While Sui holds a small share in Grayscale’s smart contract platforms index, its technological superiority could provide a competitive advantage in the future.

Sui Coin’s Future

Grayscale highlighted that Sui operates without needing additional scaling layers, offering a more efficient network experience. The report noted Sui’s standout performance regarding transaction fees and speeds. However, considering Ethereum’s substantial market value, Sui occupies a notably different position in the market.

Various experts point out that the weakness in Ethereum’s price is attributed to layer2 solutions attracting users away. Nevertheless, ETH L2 solutions continue to benefit the Ethereum network indirectly. In contrast, alternatives like Sui are drawing users away from Ethereum entirely.

Comparing Sui and Ethereum

The analysis indicates that Sui’s fully diluted value is approximately $25.9 billion, while Ethereum’s value stands around $242.9 billion. Additionally, Sui’s Total Value Locked (TVL) is reported to be about $830 million, with a market value of approximately $1.8 billion. This scenario suggests Sui’s TVL/market value ratio is lower compared to its competitors.

“Despite intense competition in the Smart Contract Platforms sector, Grayscale Research believes Sui is the most suitable third-generation blockchain that can gain market share from Ethereum over time. Within just a year, Sui achieved a remarkable milestone by reaching a total locked value of $830 million.” – Grayscale Research

The report stated that Sui’s advanced technical infrastructure could contribute to broader application areas.

Grayscale’s report provides data that users and market analysts can consider when assessing the potential of innovative blockchains. The analyzed data comparatively reveals Sui’s technological advantages in current market conditions. In the future, the network’s performance metrics are anticipated to influence user preferences.