Sui value has moved sideways up to now few days as a somber temper has engulfed the cryptocurrency business. The token, which exists on Ethereum’s community, was buying and selling at $1 on Friday, decrease than its all-time excessive of $2. Sui nonetheless has a market cap of over $558 million, making it one of many largest cryptocurrencies on the earth.
Reasons to keep away from Sui token
There are a number of the explanation why I consider that Sui isn’t a very good funding. First, Sui is a brand new blockchain in an business that has turn into extremely aggressive. It describes itself as a decentralized permissionless smart contract platform.
It’s constructed on Diem’s structure, which means that builders can use it to construct decentralized purposes in industries like gaming and decentralized finance (DeFi). The problem is that this business is very aggressive as we speak.
Sui is competing with different layer 1 networks like Ethereum, Solana, Cardano, and Polkadot amongst others. Additionally, it’s competing with layer 2 networks like Optimism, Arbitrum, and Polygon. All these platforms have tasks already, which suggests it should battle to achieve market share because the business is maturing.
We’ve got seen this occur with different new sensible contract platforms lately. For instance, Aptos, one other Diem platform, has additionally struggled to achieve important mass.
Second, Sui was launched in the identical interval because the meme coin season was getting underway. Among the prime meme cash which can be changing into in style are Pepe, Mrs Pepe, Ben, and Milady Meme Coin (LADYS). Subsequently, whereas Sui isn’t a meme coin, many merchants are placing it in that class.
Consequently, since I count on many of those meme cash to implode, there’s a chance that it too will crash laborious if this occurs.
Lastly, I think that many insiders and early buyers, together with enterprise capital corporations will begin dumping their stakes. That is vital since Sui Network boasted a valuation of over $2 billion earlier than its mainnet launch. I think that these holders will now try to exit their positions to at the very least recoup their preliminary investments.
Sui value prediction
It’s comparatively troublesome to make a very good Sui Network value prediction utilizing technical evaluation as a result of there is no such thing as a sufficient knowledge. On the 30-minute chart, we see that the SUI token has been in a sluggish downward pattern up to now few days. Notably, the quantity traded has dropped up to now three days.
Subsequently, within the close to time period, SUI value will rely on that of Bitcoin. If BTC sell-off continues, SUI will fall as nicely. In the long run, nevertheless, I think that the token will underperform different mainstream cash.