Sui Sees $2.5 Billion Volume Surge After Price Crash – Next Ethereum or Solana?

Sui has declined to $2.85 today, representing a 5% loss in 24 hours and a 13% decline in the past week.

The altcoin hasn’t fallen as steeply as the crypto market as a whole, which is down by 3% in 24 hours, yet it also hasn’t escaped the damage the $1.5 billion Bybit hack has caused.

But while it’s also down by 25% in a month, it holds on to a 76% increase in the past year, while the Sui Network itself has grown exponentially in the past few months.

Given how severely the Bybit hack has weakened demand for Solana and Ethereum, this network growth could be the foundation for some substantial price gains in 2025.

Sui Sees $2.5 Billion Volume Surge After Price Crash – Next Ethereum or Solana?

SUI is now down by 46.5% since reaching an all-time high of $5.35 on January 4, with the coin bouncing up from a medium-term resistance level of $2.75 since this date.

Its chart today is somewhat ambiguous, in that the coin could just easily fall again in the next few days, with its indicators struggling to escape from middling positions.

For instance, its 30-period average (orange) is still pointing downwards, and given that it fell below the 200-period average (blue) only a few days ago, we may still have to wait a while before a bullish reversal happens.

Something similar applies to SUI’s relative strength index (purple), which is seesawing around the 50 level, unable to rise much higher.

This would suggest that, while bulls would like the alt to stage a comeback, the market is still too downbeat at the moment to sustain a concerted recovery.

Demand is low in part because of last week’s Bybit hack, and also because of confirmation that the US will impose tariffs on Mexico and Canada.

US President Donald Trump confirms that his administration plans to implement tariffs of 25% on Canada and Mexico from 2 April.

Live: https://t.co/fHqGBwgmE1

📺 Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/xdBsA2Kp51

— Sky News (@SkyNews) February 26, 2025

Yet in the longer term, Sui continues to look very good, given its fundamentals.

An offshoot of Meta’s abandoned Libra/Diem project, Sui is a layer-one blockchain network that uses the more modular and secure Move programming language.

It has witnessed significant growth in recent months, with its TVL rising to $1.26 billion as such Sui-based apps as Suilend and Navi Protocol attract hundreds of million of dollars in daily volume.

$SUI hit a new all-time high in monthly new active addresses and surpassed 57 million total active accounts today. pic.twitter.com/AoeGlaQaRu

— ToreroRomero (@Torero_Romero) February 27, 2025

It has also seen a big increase in active addresses, which have reached 57 million in the past few days.

This all points to ongoing growth, with the Sui price likely to grow in parallel, potentially reaching $3.25 again by the end of March.

New Project Could Weaken Bull Case for Sui

Sui does look promising, yet its status as a potential rival to Solana may be in danger this year, with one project potentially undermining its appeal.

This project is Solaxy (SOLX), a layer-two network for Solana that has raised more than $23.5 million in its hugely successful presale.

DEV UPDATE 3 CONTINUED:

🛸 Bridging Solana ↔ Ethereum 🛸

Interoperability is at the heart of our vision:

• Partnering with @Hyperlane to establish a secure bridging infrastructure.

• Connecting to the @Hyperlane ecosystem (Solana, Ethereum & more).

• Next: Internal tests…

— SOLAXY (@SOLAXYTOKEN) February 2, 2025

As an L2, it will enable Solana users to avoid failed transactions, outages and congestion, which continue to be an issue for the layer-one network, even with its upgrades over the past couple of years.

SOLX will serve as Solaxy’s native token, with users needing it to pay for the L2’s – low – transaction fees.

And given that Solaxy is also promising very fast transactions and instant bridging, the demand for SOLX could be huge.

Holders will also be able to stake it, earning themselves a passive income on the side, on top of any price gains.

Investors can join its sale by going to the official Solaxy website, where they can buy SOLX at its current price of $0.001648.

This price will rise numerous times before the sale ends, so new investors should act sooner rather than later.