Solana (SOL) has made huge waves in the cryptocurrency market and, in 2023, consolidated as the best-performing digital asset. Traders and investors now look to the “next big mover” after Solana, speculating on groundbreaking technologies and promising projects.
In particular, Raoul Pal, Founder and CEO of Global Macro Investor and Real Vision, has made his bull market bet. According to the trading expert, Sui Network (SUI) has what it takes to be a leading performer this cycle.
Raoul Pal described Sui as “the groundbreaking ultra-fast L1, super efficient, full blockchain ecosystem” when looking for “signs of the next big L1 mover.” Nevertheless, he disclosed having a position on the Sui Foundation’s board and acknowledged concerns about SUI’s tokenomics with massive unlocks.
The trading and investment executive posted this thread on X on August 8 as cryptocurrencies recovered from a crash.
Sui Network (SUI) bullish case
Raoul Pal attributes his bullish case to Sui’s fundamental aspects and technical analyses against other layer 1 native tokens. The fundamental analysis is primarily based on the idea of being able to efficiently scale Web3 to billions of people.
Meanwhile, price charts suggest SUI could be undervalued against its pairs and ready for a breakout, according to the analysis. Pal compared Sui’s token against the dollar (USD), Aptos (APT), Avalanche (AVAX), Celestia (TIA), Near (NEAR), Bitcoin (BTC), and SOL.
SUI/SOL daily price chart on Coinbase. Source: TradingView / Raoul Pal
Sui Network (SUI) bearish case
Conversely, SUI’s tokenomics put a huge pressure on the supply side, with massive monthly token unlocks ongoing, dumping on retail. Finbold has reported these releases and their effect on the project’s price, losing purchasing power every month at the unlocks.
As explained in the thread, Sui Network is a “high FDV coin, and some people don’t like them.” FDV goes for Fully Diluted Valuation, which measures a cryptocurrency’s future market cap once all tokens are in circulation.
With only 25% of all SUI in circulation at $0.835 per token, the project has a $8.35 billion FDV against a $2.17 billion market cap.
Sui Network (SUI) market data. Source: CoinMarketCap
Interestingly, other investment experts have warned against a “predatory VC” market, explaining how these tokenomics can punish retail investors. Finbold also reported what the founder of the oldest European crypto investment fund called “the Holy Grail of crypto.”
As a new bull run appears to surge in the cryptocurrency landscape, competing projects will dispute investors’ attention – and capital. Remaining cautious and doing proper research on these projects’ fundamentals, value propositions, competitive advantages, and tokenomics is essential moving forward.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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