Why I'm Going All In On This New Blockchain

If you haven’t noticed Sui’s price explosion and increased awareness over the past month, you haven’t been paying close attention to the crypto space. Since I last wrote about Sui in Fundamentals & Hype on This Altcoin Is Screaming BUY! I've gone further down the Sui rabbit hole and like what I see.

Today, I’m going to explain how and why Sui is positioned to be the next big contender in blockchains. Since I have already gone over the fundamentals and narrative in my last story, I’ll fill you in on some updates and go further under the surface about what I see in Sui that makes it unique.

Finally, I will discuss my strategy for investing in the Sui ecosystem.

Updates since my last article

With nearly $1 billion in total value locked at the time of writing, Sui has had some big news in the past six weeks: Grayscale launched a SUI trust for its accredited investors, Circle announced they are bringing native USDC to Sui, and nearly 2,000 of the suiplay0x1 handheld gaming devices were pre-ordered.

Unsurprisingly, the price of the SUI token has breached $1.50, and it’s only trading 32% below its all-time high—something very few altcoins can say today.

Faster, Cheaper, and Easier Is Just the Beginning

Most blockchains are competing to be the fastest or cheapest. Meanwhile, fast and cheap transactions have already been built into Sui. We can thank Mark Zuckerberg for that since most of the development for the Move programming language was written at his expense.

But I want to share what makes Sui different from the dozens of Ethereum Layer 2s, Solana, and Avalanche. The biggest and most important thing I see are the platforms built on Sui.

Being a DeFi native, I was naturally drawn to the DeFi ecosystem. Like every other chain, there are Dexes, lending platforms, and derivative platforms.

However, Sui also has some unique DeFi properties that other chains don’t have. For example, Typus.finance has built a user-friendly synthetic-covered call-and-put call-and-put selling platform.

Deepbook is a central limit order book capable of providing deep liquidity to dapps in the Sui DeFi ecosystem. This will provide traders with the fastest and fairest pricing on trades.

Further, Sui hosts a CDP protocol and multiple liquid staking opportunities. Unlike Ethereum where liquidity is fractionalized between the main chain and all of the Layer 2’s, the Sui protocols are capable of growing significantly larger without having to spend time re-coding for every new tech upgrade.

More than just DeFi

Yes, Sui has NFTs, a Pump.fun copycat, and memecoins for speculators to gamble on. But Sui is building a lot more to attract real users, not just degens.

For example, the Sui handheld gaming system is a huge step in testing proof of concept for Web3 gaming. Sui is attracting multiple game developers, which can hopefully attract millions of users.

On Ethereum and Solana, sending crypto privately is a hassle and fee-intensive. Meanwhile, zKpay.sui affords users to send their Sui privately and cheaply.

Social apps such as DeSui, FanTV, LiquidLink, MyBlue, and RCRD can be real use cases that effectively bridge web2 to web3 and aren’t centered primarily on getting rich quickly.

What’s amazing is that these platforms aren’t blatant money grabs, launching a token before building a product. This is a refreshing change from the greedy devs on other chains, who too often create tokens and cash out without delivering anything.

While I can’t use it as a US citizen, Sui has a Telegram wallet and offers easy login and connections to introduce new users into its ecosystem easily.

If you are investing in or thinking of investing in SUI, I’d encourage you to check out their explorer, www.suiscan.xyz. It is, hands down, the most complete and best blockchain website I’ve seen, including analytics, news (updated multiple times every week), dapps in the Sui ecosystem, and all the contract and wallet information you expect.

My Sui Strategy

Most of my portfolio allocation for the Sui ecosystem is in the SUI token itself. It trades on multiple exchanges and is in the sweet spot that retail can gobble up at $1.50 (at the time of writing).

I can easily see the SUI token growing its market cap as it continues growing and maintains its momentum.

Next, I’m employing a strategy from Miles Deutscher, where you buy the biggest Dex, the biggest memecoin, and the biggest lending protocol on the chain.

The thesis is that these tokens can see a significant upside as the ecosystem grows. For example, when more native USDCs launch, there will be greater demand for trading (on a Dex) and earning yield (on a lending platform). More liquidity typically means more memecoin degeneracy. These low-cap altcoins also carry the lowest relative risk.

I’ve invested in the lending platform Navi Protocol (NAVX), the largest Dex, Cetus Protocol (CETUS), and the BLUB memecoin. At the time of writing, all three command less than a $50 million market cap.

This represents a great risk/reward ratio, considering that the top Dex on Solana has a $422 million market cap and functions like an absolute garbage diaper trashcan.

Uniswap has a $4 billion market cap and is fighting with the SEC. And L2 Dexes such as Aerodrome (on Base) and PancakeSwap (on Binance Smart Chain) command $525 million and $497 million market caps, respectively.

At the same time, Navi Protocol has only a $21 million market cap compared with Aave on Ethereum ($2.25 billion market cap), Kamino on Solana ($107 million market cap), and Venus on Binance Smart Chain ($119 million market cap).

BLUB’s market cap is barely $28 million, while Pepe's is $3.4 billion, and DogWifHat's is $1.7 billion.

When considering how these competitors are valued, it’s easy to see how the Sui ecosystem can be very rewarding if Sui does what I think it will.

Key Takeaways

In crypto, you want to get positioned in the big stories before retail arrives. Last cycle, Cardano and Polkadot shined. They ended up delivering very little but making many crypto investors a lot of money.

Today, Sui has more users, better Dapps, better tech, and more TVL than Cardano or Polkadot while carrying a lower market cap. It doesn’t take a brain scientist to see where they may get better returns.

It’s important to note that Sui has inflation. But guess what? So do Solana, Ethereum, Arbitrum, Optimism, and every other Layer 1 and 2.

Further, Sui has a gigantic advantage as the new kid in town. With very little competition in new Layer 1’s Sui is positioned to thrive.

Let me know what you think in the comments. Clap if you like my thesis or think that owning SUI makes sense. Let me know if I’m missing anything. Thank you for reading and clapping.

I own SUI, NAVX, CETUS, and BLUB. This information should not be taken as investment advice. I am no more qualified to give financial advice than to star in a commercial with Robert Gronkowski. I have not been paid or compensated to write this article. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing.