Sui, a popular layer-1 network, has emerged as one of the best-performing cryptocurrencies since August, hitting a five-month high.
The Sui token (SUI) has been on the rise for three consecutive weeks and is up more than 240% since its low in August, giving it a market capitalization of over $4.17 billion.
1. The DeFi ecosystem is growing
Sui, often considered a rival to Solana (SOL), has been performing well due to its growing popularity among users and developers. The data shows that the total value locked in its decentralized finance ecosystem has jumped to a record $860 million, up from $383 million in August.
Some of the most notable Sui dApps that have seen an increase in assets include Suilend, Scallop Lend, and Cetus, which have accumulated assets worth over $137 million.
Sui has also attracted $378 million worth of stablecoins, a figure that is likely to increase now that he has activated Circle’s USD Coin.
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Additionally, Sui decentralized exchanges are seeing increased activity, mainly due to their low fees. Its volume increased by 50% in the past seven days to $428 million, making it the ninth-largest chain in the industry. It has surpassed some popular blockchains such as Tron (TRX) and Avalanche (AVAX).
This growth of the ecosystem has led to more transactions on the network. According to SwissThe number of transactions has grown to over 548,000, the highest level since May. Its half-year transactions have increased by 21% to 1.91 billion.
2. Sui is becoming a major player in the gaming world.
Meanwhile, Sui is positioning itself as a major player in the blockchain gaming industry, which is often considered a key use case for blockchain technology.
The developers have launched several gaming tools such as zkLogin, which helps players onboard easily. It also features a kiosk that allows developers to set custom trading policies. Other notable features include closed-loop tokens and parallel transaction processing.
In particular, developers are accepting pre-orders for a gaming console that will have some blockchain features. During the pre-order process, users will create a new wallet that will contain a unique nft upon delivery of the device.
Additionally, Sui has seen a surge in open interest in futures, which soared to an all-time high of $453 million on Sept. 20.
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3. Sui has strong technical skills.
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Sui has also rallied thanks to its strong technical characteristics. The recovery began on August 5, with the formation of a small hammer candle, a popular reversal signal in price action analysis.
Sui has crossed the 50-day and 200-day moving averages, which are about to form a golden cross, an indicator that is usually bullish. The average directional index has risen to 30 and the relative strength index has moved to 83.
These indicators suggest that Sui has bullish momentum, meaning it could continue to rise in the near term. If this happens, the next potential level to watch will be $2.17, its highest level in March and 40% above the current level.
