OriginTrail (trac) 
The Sui token has experienced a significant decline, falling for three consecutive days and erasing most of the gains made last week. On Tuesday, Aug. 27, Sui retreated to $0.90, down by 20% from its highest point last week, bringing its market value to $2.3 billion.
This decline coincided with Bitcoin losing momentum and dropping to $62,000. Other assets that rallied after Jerome Powell’s dovish tone have also pulled back, with the Nasdaq 100, S&P 500, and Russell 2000 indices falling by over 30 basis points on Monday.
Sui Token Performance
Like most tokens launched on Binance, Sui has not met expectations, crashing by nearly 60% from its peak earlier this year. Despite this, supporters believe that Sui could surpass Solana in key metrics such as market capitalization, Decentralized Finance (DeFi) total value locked, and developer activity. They argue that Sui’s blockchain is faster and has lower transaction costs compared to Solana.
Notably, Sui is seen as a better alternative because Solana has faced congestion issues due to its popularity among DeFi, meme coins, and Decentralized Public Infrastructure (DePIN) developers. Tim Kravchunovsky, the creator of Chirp, a DePIN for telecoms, has made a case for using Sui for DePIN developers.
Comparison with Solana
Sui has a long way to go to catch up with Solana, which is the fifth-largest cryptocurrency with a market cap of over $71 billion. Data shows that Solana has over $5.7 billion in DeFi assets and almost $4 billion in stablecoins. Solana is also the second-largest chain in terms of DEX volume after Ethereum.
In comparison, Sui has $652 million in DeFi assets and just 38 decentralized applications (dApps). It also has $373 million in stablecoins, significantly lower than Solana. Additionally, Sui’s DEX volume in the last seven days was $222 million, while Solana had $5.96 billion.
It’s important to note that Sui is still in its growth phase, having been launched in 2023, while Solana has been around since 2020.
Token Supply and Future Prospects
Another concern about Sui is its future token unlocks. Sui has a maximum supply limit of 10 billion $SUI tokens, of which 25%—or 2.6 million—have been unlocked. Meanwhile, 80% of all SOL tokens have been unlocked, indicating lower future dilution for Solana.
Sui has a fixed supply of 10 billion tokens, ensuring no more will be created, which supports its deflationary model.
Technical Analysis
Recently, the Sui token has pulled back after forming a double-top chart pattern at $1.056, with the neckline at $0.8051. Typically, a double-top leads to a strong bearish breakout. However, on the positive side, the Sui token remains above the 50-day moving average and has formed an inverse head and shoulders pattern. The ongoing retreat also occurred after it retested the 23.6% retracement point.
Therefore, a bullish breakout cannot be ruled out. This view will be confirmed if the price moves above the double-top point at $1.056.
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