Solana currently stands firmly as the leading Layer 1 network alongside Ethereum, but Sui Network has the potential to achieve the same position, according to analysts from K33 Research.
In a September 18 research note, David Zimmerman, DeFi analyst at K33, said Sui ’s superior development compared to Solana, coupled with its architecture and upcoming gaming console launch, could make it a top contender in the “Alt L1” group.
“Solana has typically dominated the L1 battle, but while SOL/ ETH is up 6% since August, Sui/ SOL is up 115% over the same period.”
He admitted that much of Sui ’s recent outperformance, with the Sui Token up 36% over the past week, could be due to “mispricing” in the broader market, but asserted that Sui “definitely” has factors supporting this rally.
On September 17, Circle announced the launch ofUSD Coin (USDC) on the Sui network, demonstrating growing adoption from key industry players. Zimmerman explained that Sui has the technical potential to compete with Solana, with a theoretical capacity of 297,000 transactions per second, compared to Solana's 65,000.
Still, he noted that there is a big difference between theoretical TPS and actual TPS; Solana 's actual TPS is close to 3,000, while Sui is expected to reach 854 by July 2023.
“Sui has developed impressive technology, but we have yet to see it outperform Solana in the real world,” Zimmerman stressed, suggesting that this could change if Sui continues to attract users and Capital .
However, the analyst also pointed out that Sui is facing a major hurdle regarding Token supply. With only 27% of the total supply in circulation, current investors could face a sell-off when Token Lockup unlocks occur in the future, while 80% of Solana 's total Token supply has already been issued.
One piece of positive news for Sui is the upcoming release of the SuiPlay0x1 handheld gaming console, developed by Mysten Labs. Scheduled to launch next year, the device will come with “Eternals” Non-Fungible Token that unlock exclusive rewards for users. Zimmerman compared the console to Solana’s first mobile device, Saga , and noted:
“This is the real value for speculators.”
Still, he stressed that while Sui may gain an advantage in the “L1 war,” Ethereum is not in danger in the near term.
“Sui has a lot of potential in the L1 competitive landscape. The market still sees other L1s besides Ethereum as ‘competitors’, while Ethereum has already established its own niche.”
Sui is a Layer 1 blockchain and smart contract platform that simplifies the process of creating applications in the Web3 ecosystem, with a model based on the Move programming language and the ability to execute transactions in parallel.
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According to Cointelegraph
