SUI price hits a new all-time high - but valuation issues still exist
SUI has recently attracted widespread follow, and its development has reached its peak. At the close of the week, its price reached a historical high of $2.30, ranking higher than top AltCoins such as Polkadot (DOT), thus entering the top 15 Cryptocurrencies. This achievement has inspired hope for those who support SUI, as they believe it will become a major competitor in the market.
Decentralized Finance noticed the price surge of SUI, with Total Value Locked (TVL) reaching $1 billion. The token ranks higher than Avalanche (AVAX) and Polygon (MATIC). Investors have noticed the growing importance of SUI in the Decentralized Finance market, and SUI's forecast shows a continued positive trend in the next three months, with an increase of up to 240%.
Currently, the trading price of SUI is $2.04, which has decreased by 4.3% in the past 24 hours, but has continued to pump by 8.7% in the past 7 days. The rapid rise of SUI has excited many people, but it has also raised doubts. In fact, some analysts doubt whether the current market capitalization of the Token is in line with its actual fundamentals.
The value pump has sparked a debate as people try to measure the Market Cap of SUI to identify potential issues. This situation is not uncommon for rapidly expanding coins or Tokens; however, it can also raise some concerns for potential buyers.
Insider dumping is another worrisome issue. During the recent pump of Token, a large volume of transactions in the foundation's wallet has raised concerns about its price sustainability. Withdrawing funds during a price surge may indicate insecurity among insiders, leading investors to doubt the long-term prospects.
The complexity of SUI's current situation is exacerbated by its Fully Diluted Valuation. SUI has a Fully Diluted Valuation of $1.2 billion, significantly lower than Solana's $4.7 billion. Some market experts claim that Solana's pricing may be incorrect because Solana's Fully Diluted Valuation is less than a third of Ethereum's. This has led some to conclude that SUI is currently overvalued.
This comparison also raises the issue of potential market mispricing, which requires investors to weigh the pros and cons before participating. Currently, there is competition among various cryptocurrencies, and understanding the valuation of such projects relative to other tokens can help people better understand each token.
Despite the concerns, the recent prospects for SUI remain optimistic. From the perspective of PA, the stock will show a pump trend, as forecasts indicate a significant increase in market size in the coming months. Over the next three months, the price of SUI is expected to pump by 244%, attracting many hopeful investors.
Investors are advised to proceed with caution. Given the large volume of insider trading and concerns about valuation, the future may not be as optimistic as expected. It is crucial to monitor market trends and perform Technical Analysis to address the risks brought by the rapid rise of SUI.
(Data Source: Christian Encila)
