Sui (SUI) Price Review – Surge Past $5.0 Likely with Increased On-chain Activity

The Sui (SUI) bulls are firmly in command as Christmas Day 2024 approaches, with the price hovering around $4.60, just shy of the record highs close to $5.0 reached earlier this month.

SUI has consistently found robust support during retests of its key moving averages, including a notable rebound last week from the 50DMA.

This indicates that the demand to buy the dip remains strong, and there may be mounting pressure for a significant breakout above the $5.0 mark in the upcoming weeks.

The optimistic price movements of Sui should not be unexpected given the surge in on-chain activity, declining trading volumes, and a fundamental environment that acts as a solid tailwind for cryptocurrency markets heading into 2025.

According to DeFi Llama, the USD value of cryptocurrency locked in smart contracts on the Sui blockchain has reached record levels near $1.8 billion, while on-chain volumes are consistently ranging from $400 million to $600 million, and perpetual volumes are trending back toward their peak levels of the year.

Sui’s official X account recently shared a recap of the blockchain’s remarkable year of expansion.

2024 has been incredible for the Sui community; words simply can’t capture it…
…so we opted to use numbers!
And trust us, the figures in this summary are genuinely impressive pic.twitter.com/W8DwuRYHeh

— Sui (@SuiNetwork) December 23, 2024

Meanwhile, although the Federal Reserve created a stir in risk assets by indicating fewer rate cuts in 2025 than the market had anticipated last week, optimism remains high that the pro-crypto incoming Trump administration and Congress will usher in a new golden age for the crypto sector and markets in the United States, accelerating global adoption.

Bitcoin is expected to dominate the headlines in 2025 with the potential establishment of a US Bitcoin strategic reserve. However, high-performing chains like Sui are also poised for significant growth.

Schwab predicts #Bitcoin might reach $500K–$1M when Trump sets up a Strategic Bitcoin Reserve. pic.twitter.com/3cArfgRYTU

— Bitcoin Archive (@BTC_Archive) December 6, 2024

What’s Next for the Sui (SUI) Price?

Given all of this, a short-term breakout above $5.0 appears highly probable for the Sui price.

However, with Sui already undergoing a phase of price discovery, there are not many easily identifiable price targets for the cryptocurrency.

A 2x rally to $10 is certainly a possibility. But considering Sui’s current market cap of around $46 billion fully diluted ($13.5 billion circulating), much larger gains than 2x could be on the horizon for the cryptocurrency.

Sui is currently establishing itself as one of the top-performing layer-1 protocols in the industry, and there is potential for significant catch-up to its larger competitors like Solana and Ethereum.

Solana’s fully diluted market cap was recently around $116 billion, while Ethereum’s stood at approximately $420 billion, with both expected to see substantial growth in 2025.

Is it possible for Sui to achieve a fully diluted valuation in the hundreds of billions during this cycle? It’s certainly feasible, assuming its chain continues to lead in web3 adoption, as is currently the case.

A Sui price in the $20 range becomes a realistic target if these assumptions hold. This makes it a compelling candidate for the best cryptocurrency to invest in now.

Of course, cryptocurrency investors would be wise to diversify their portfolio across several high-potential coins.

Bitcoin could still achieve 2x gains next year, or even more if strategic reserves become established. Other prominent tokens like Ethereum and Solana are also likely to perform exceptionally well.

Nevertheless, Sui is undoubtedly a valuable addition to any investor’s cryptocurrency portfolio.

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