VanEck, an asset management firm, has predicted a substantial 4x increase for Sui [SUI] by the year’s end.
A recent comparative study report on Sui and Aptos [APT], prominent players in the smart contract platform (SCP) sector, projected,
“A 5.5% share of the SCP market, with an estimated market cap of $61 billion. With 3 billion tokens set to be available by January 2025, this could drive the token price to around $16. This reflects a 326% surge from the current price of $3.75.”
VanEck’s Senior Investment Analyst, Patrick Bush, forecasts that the SCP market might reach $1.1 trillion by 2025.
This potential growth corresponds to a 43% increase, and is associated with the expansion goals of the US M2 money supply.
Based on the firm’s analytics, Sui could capture 5.5% of this SCP market expansion, leading to a probable 4.26X rally for the SUI token.
Upsurge in Sui’s Momentum
Key factors driving Sui’s advantage include robust DeFi engagement, particularly through DEX (Decentralized Exchange) trading volume.
Over the last 100 days, Sui has ranked as the fourth top platform in DEX volume, following Solana, Ethereum, and Arbitrum.
Additionally, Sui has attracted significant market attention compared to Aptos, its primary competitor.
Google Trends data reveals Sui as the third most searched network online, trailing only Solana and Ethereum [ETH].
These indicators position the layer 1 contender strongly for claiming the third spot among smart contract platforms, leveraging its speed and scalability advantages.
Nonetheless, the report warns of potential adverse impacts on mass adoption from regulatory classifications, such as being labeled as a commodity or security.
“The (FIT 21 bill) brings needed clarity but there’s a risk that key players in the crypto space may influence the bill to include strict decentralization requirements. If enacted, such requirements could disqualify chains like Solana, Sui, and Aptos, limiting their tradeability to accredited investors and hindering broader adoption.”
Despite this, Sui experienced a pullback in January, stabilizing around the demand zone above $3.5 (cyan). As of now, the token is up by 12%, trading at $4.1.
A significant rebound could propel Sui back into its upward channel established last November.