SUI Outperforms SOL by 30% in January, Fueling Speculation of a Potential Flip of Cardano

The cryptocurrency market has witnessed a significant development in January, with Sui (SUI) outperforming Solana (SOL) by 30%. This trend, which began in September, has solidified SUI’s position as a strong competitor in the layer 1 space. Notably, SUI’s remarkable traction has caught the attention of prominent investors, including Raoul Pal.

SUI’s Impressive Performance

Since the November US elections, SUI has outperformed SOL by an impressive 166%. This means that SOL investors would have been better off holding SUI over the past three months. According to data from TradingView, SUI’s price has surged, while SOL’s has remained relatively stagnant.

Network Activity Soars

SUI’s recent rally has been accompanied by strong network growth. In early January, gas consumption soared from 16k to over 21k, indicating a significant increase in transactions within the Sui network. Additionally, active addresses increased from 590k to over 770k in less than two weeks, representing a 30% increase. This uptick in network activity and demand has contributed to SUI’s price jump to $5, with the altcoin still holding onto some of its New Year’s gains.

Price Chart Analysis

On the price chart, SUI has formed an ascending channel, with traders targeting the range of highs and lows for entry and profit-taking. If the channel holds over the next few weeks, SUI could potentially climb to $6 or above. This bullish sentiment is shared by some users, who expect SUI to flip Cardano (ADA) by February.

Flipping Cardano: A Possibility?

Currently, ADA is ranked as the ninth-largest cryptocurrency by market capitalization, with a market size of approximately $32 billion. SUI, on the other hand, is ranked 11th with a market size of around $15 billion. To flip ADA, SUI would need to double its current value to over $10. While this is a challenging task, it’s not impossible, especially considering the bullish sentiment surrounding SUI.

Market Sentiment

According to Coinglass data, 57% of top traders’ positions on the Binance exchange are betting on SUI’s upswing. If market sentiment improves, this bullish sentiment could fuel further traction for the altcoin.

Conclusion

In conclusion, SUI’s impressive performance in January has solidified its position as a strong competitor in the layer 1 space. With strong network growth, a bullish price chart, and improving market sentiment, SUI is definitely a cryptocurrency to watch in the coming weeks. While flipping Cardano is a challenging task, it’s not impossible, and SUI’s potential should not be underestimated.

Source: Ambcrypto.com

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