Sui (SUI) Price Analysis – Break Above $5.0 Imminent as On-chain Activity Booms
On the eve of Christmas Day 2024, the Sui (SUI) bulls remain in control, with the price currently around $4.60, just below the record highs it reached near $5.0 earlier this month.
SUI continues to receive strong support when retesting its major moving averages, including a significant bounce last week from the 50DMA. This suggests that the desire to buy the dip remains high, and there may be pressure for a breakout above the $5.0 level in the coming weeks.
The bullish price action of Sui is not surprising given the increasing on-chain activity, rising trading volumes, and a positive fundamental backdrop that supports the crypto market as we enter 2025.
According to DeFi Llama, the USD value of crypto locked in smart contracts on the Sui blockchain has reached a record high of around $1.8 billion. On-chain volumes consistently range from $400 million to $600 million, and perpetual volumes are trending towards their highest levels of the year.
Sui’s official X page recently tweeted a summary of the blockchain’s impressive growth in the past year.
While the Fed’s signaling of fewer rate cuts in 2025 caused some turbulence in risk assets, there is still hope that the pro-crypto incoming Trump administration and Congress will bring about a new era of growth for the crypto industry and markets in the US, thereby accelerating global adoption.
Bitcoin is expected to dominate the headlines in 2025, especially with the potential establishment of a US Bitcoin strategic reserve. However, high-performing chains like Sui are also poised for significant growth.
In terms of the Sui (SUI) price, a breakout above $5.0 in the near term seems highly likely. However, since Sui is already in a phase of price discovery, there are not many easily identifiable price targets for the crypto. A 2x rally to $10 is a possibility, but considering Sui’s current market cap of around $46 billion fully diluted ($13.5 billion circulating), even greater gains could be in store for the crypto.
Sui is currently proving itself as one of the best-performing layer-1 protocols in the market, and it has the potential to catch up significantly with its larger rivals like Solana and Ethereum. Solana’s fully diluted market cap is currently around $116 billion, while Ethereum’s is around $420 billion, and both are expected to expand further in 2025.
Is it possible for Sui to reach a fully diluted valuation in the hundreds of billions in this cycle? It is certainly a possibility, assuming its chain continues to lead in terms of web3 adoption, as it currently does. A Sui price in the $20 range becomes a realistic target if these assumptions hold, making it a strong candidate for the best crypto to buy now.
Of course, crypto investors are advised to diversify their portfolios across several high-potential coins. Bitcoin may still see 2x gains next year, or even more if strategic reserves gain traction. Other leading tokens like Ethereum and Solana are also expected to perform well. But Sui is certainly a great addition to any investor’s crypto portfolio.
