Sui Emerges as a Strong Contender to Challenge Solana's Dominance in Layer 1

Recently, the high-performance Layer 1 blockchain Sui, developed by Mysten Labs and using the Move programming language, has demonstrated remarkable strength in its price performance. Over the past 46 days, Sui’s price has surged by over 200% from its August 5 low, making it one of the top-performing cryptocurrencies among the top 50 by market cap.

According to a report published by K33 Research, Sui is poised to become Solana’s most formidable challenger. Researcher David Zimmerman cited Sui's architectural design, performance, and the upcoming release of its gaming console as key factors positioning it as a top Layer 1 blockchain contender.

Comparative Performance Between Sui and Solana

Zimmerman pointed out that while Solana has traditionally been seen as the leading "Ethereum killer" and remains widely used, Sui’s recent price gains have far outpaced Solana’s. Since August, SUI/SOL has risen by 115%, whereas SOL/ETH has only increased by 6%. He acknowledged that some of Sui’s recent price performance could be due to pricing discrepancies, but noted that positive developments around the blockchain are likely fuelling the surge.

On September 17, Mysten Labs announced a partnership with Circle to issue USDC on the Sui network during the Token2049 event in Singapore. Additionally, Grayscale launched a Sui trust fund in August, further supporting the blockchain’s development.

Technical Capabilities: Sui vs. Solana

While Sui’s theoretical maximum transactions per second (TPS) stands at an impressive 297,000, surpassing Solana’s 65,000 TPS, the actual performance gap between the two remains notable. According to CoinGecko, Solana's real-world TPS reaches up to 3,000, while Sui’s highest recorded TPS, in July 2023, peaked at 854.

Zimmerman praised Sui’s technological achievements but stated that Sui has yet to surpass Solana in terms of real-world performance metrics, such as daily transaction volumes.

SuiPlay0x1: A Potential Game-Changer?

Another aspect boosting Sui’s bullish outlook is its upcoming handheld gaming console, SuiPlay0x1, which is set to be developed and released by Mysten Labs. The device, expected to ship next year, will include NFTs and may offer airdrop rewards from the Sui ecosystem.

Zimmerman compared the anticipated impact of SuiPlay0x1 to Solana’s first mobile device, Saga, which became a "rewards magnet" for users, providing airdrops that exceeded the device’s purchase price.

related reading：Solana's second-generation smartphone seeker is ready to be launched. First-generation saga buyers can directly receive airdrop rewards if they purchase again

Challenges Ahead: Token Supply Concerns

However, Zimmerman warned that Sui’s token supply could pose a significant hurdle in its challenge to Solana. Currently, only 27% of Sui’s total token supply is in circulation, with the rest yet to be unlocked. This could lead to sell-offs by early investors when these tokens are unlocked, unlike Solana, where 80% of tokens are already circulating.

While Sui’s potential to compete in the Layer 1 space is evident, Zimmerman noted that Ethereum’s position is secure. With the upcoming Ethereum spot ETF listing in the U.S., he believes that no alternative Layer 1 blockchain poses a serious threat to Ethereum in the near future.

related reading：Sui Network TVL Hits All-Time High as SUI Token Surges 30%