SUI has recently closed the week at its all-time high (ATH) price of $2.30, outperforming top altcoins such as Polkadot (DOT) and ranking among the top 15 cryptocurrencies.
DeFi observed a significant increase in SUI’ price and its total value locked (TVL) achieving $1B. Investors are turning to SUI’s expanding presence, with forecasts indicating sustained positive momentum and an impressive 240% growth anticipated over the next three months.
As of writing, SUI was trading at $2.04, down 4.3% since the last 24 hours, but sustained an 8.7% in the last seven days, according to Coingecko data.
Valuation Concerns Arise
The rapid rise of SUI has raised doubts among many investors and crypto enthusiasts. Indeed, some analysts are questioning the relationship between the prevailing market cap of SUI and its real fundamentals.
Another concern is insider selling. Large transactions from a foundation wallet during the token’s recent surge have sparked doubts about the sustainability of its price. Selling off during a price increase could signal a lack of confidence from insiders, leading investors to question the token’s long-term potential.
Comparison of Fully Diluted Valuation
People are also confused by SUI’s fully diluted valuation. The FDV of SUI is $1.2 billion, far lower than Solana’s $4.7 billion. Many market experts assert that Solana could be mispriced since the fully diluted valuation of Solana is less than one-third that of Ethereum. This is the reason why some conclude that SUI is overvalued currently.
What’s Next for SUI?
Despite the concerns, the outlook for SUI’s near-term development remains positive. Price analysis suggests an upward trend, with projections indicating a significant market size increase in the coming months. SUI’s price is expected to rise by 244% over the next three months, drawing interest from many optimistic investors.
However, investors should proceed with caution. Given the high volume of insider sales and concerns over valuations, the future may not be as bright as predicted. Monitoring market dynamics and relying on technical analysis will be crucial to managing the risks associated with SUI’s rapid growth.
