Why Sui Is Outshining Solana in Crypto Capital Inflows

• Sui’s capital inflows reach $737.6M, showing rapid growth and strong competitiveness among alternative Layer 1 blockchains.
• Sui’s social interactions hit record highs, indicating increased market interest and adoption in the blockchain ecosystem.

This year, the Sui blockchain has emerged as a prominent player in the crypto industry, attracting huge capital inflows and garnering attention from analysts and traders.

According to Jamie Coutts, Chief Crypto Analyst at Real Vision, Sui’s net flows will reach a remarkable $737.6 million in 2024, ranking second among alternative Layer 1 blockchains just behind Solana’s $1.1 billion.

#Crypto capital flows are favouring #Sui

Sui's net flows this year hit $737.6M, 2nd highest among Alt-L1s after Solana's $1.1B. On a relative basis Sui’s inflows are 18% of its market cap, while Solana's are 2%—a 9x difference!

Ethereum leads outflows across the crypto… pic.twitter.com/XRNAZ537k3

— Jamie Coutts CMT (@Jamie1Coutts) September 25, 2024

Sui Capital Inflows Signal Growing Confidence and Competitiveness 

What makes this even more impressive is that Sui’s inflows account for 18% of its overall market capitalization, compared to Solana’s 2%—a 9x difference between the two networks.

This comparison demonstrates how capital is substantially favoring Sui over other competitors, indicating that there is growing confidence in the Sui network’s long-term potential. Ethereum, on the other hand, has seen net outflows, with a large chunk of its money going into Layer 2 solutions.

Despite this trend, some of this capital has found its way into other Layer 1 networks, with Sui being the primary receiver. An amazing 92.9% of Sui’s inflows have come from Ethereum, with Solana accounting for 5.3%.

Net capital flows in a blockchain network are analogous to a country’s capital account; greater inflows indicate increased competitiveness and confidence in the network, just as capital markets reflect a country’s economic strength.

Coutts even used an analogy to emphasize this: he compared Ethereum to the United States, which has deep capital markets and strong property rights; Solana to China, which is known for rapid growth but with more centralization; and Sui to emerging players like South Korea or Singapore in the 2000s, implying that Sui has the technology but is still developing its capital markets and diversification.

Further supporting Sui’s rising trend, on-chain analyst Ali Martinez noted that social engagements around SUI had reached an all-time high following the asset’s roughly 300% price increase over the last month.

However, Martinez noted that, while the rise may still have opportunity to expand, greater market attention could herald a short-term slump.

In terms of overall blockchain rankings, Sui has established itself as a prominent contender. Sui has risen to eighth place among all blockchains, according to CNF, after its Total Value Locked (TVL) increased by 3,285%, exceeding $900 million.

This exponential increase in TVL demonstrates the Sui ecosystem’s quick uptake and growing interest. Analysts currently believe SUI has the potential to hit a new all-time high, with a critical resistance target set at $2.60 following a successful trade over $1.80.

Meanwhile, as of writing, SUI is trading around $1.64, up 13.18% over the last seven days, with a daily trading volume of around $552.11 million.