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Could SUI’s rapid growth challenge Solana’s market dominance?
Sui has become cheaper and faster than Solana, cementing its position as a formidable alternative.
- SUI has outperformed SOL on key fronts.
- Some market commentators believe that its growth could derail SOL.
Sui [SUI] seems ready to eat into Solana’s [SOL] market share amid massive growth on key fronts.
On 5th October, the Layer 1 platform outpaced Solana on transaction counts. It hit over 58 million transactions, while Solana executed 35 million on the same day.
SUI’s aggressive growth
Reacting to the growth, Adeniyi Abiodun, one of the Sui insiders, said,
“With no failed transactions, no sandwich attack, and swaps still sub-second!”
However, SUI has also experienced notable growth on other fronts. At press time, it also outpaced Solana’s throughput, knocking 756 transactions per second (tps) as SOL clocked 726 tps.
Source: Sui Vision
More notable traction was also noted across Ethereum-based outflows and average costs. SUI’s weekly Ethereum outflows stood at $55 million, while SOL bled $69 million over the same period.
Regarding user charges, SUI proved to be a cheaper alternative to Solana. Its average fee was $0.00018, against SOL’s $0.0044. In short, SUI checked all the boxes that made Solana a better alternative to Ethereum [ETH].
In a way, some market commentators have deemed its aggressive traction a
threat to Solana’s dominance. Some even doubted whether SOL could hit $1000 amid Sui’s massive growth.
Source: SUI/SOL ratio
Interestingly, the traction was also visible on price charts. The SUI/SOL ratio, which tracks the relative performance of SUI against SOL, has been on a steady rise since August.
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It increased by +200% from 0.003 to 0.013, underscoring SUI’s price rally. At press time, SUI price consolidated below $2 and was close to hitting a price discovery.
However, SOL’s TVL (total value locked) eclipsed SUI’s. SOL boosted $5.5 billion in TVL against SUI’s $1 billion, underscoring that more investors were still parked in the Solana network.
