SUI Price Gains 127% after Overtaking Solana with $227M ETH Inflows

SUI Price Prediction:

SUI price broke above the $1 mark on Thursday, Sept 12, reflecting a remarkable 127% rebound from its yearly timeframe low of $0.46 recorded on Aug 6. On-chain data trends from Wormhole Bridge shows SUI has pulled the highest inflows from Ethereum network in the past year.

SUI Price Breaks $1 Barrier as CPI data Sparks Demand across Crypto Market

The global cryptocurrency market has reacted positively as the US CPI inflation data published on Wednesday Sept 11 lent further credence to the likelihood of a US Fed rate cut this month.

A glance at the top gainers charts, within 24-hours of the positive CPI report, shows that SUI has emerged one of the best performing crypto assets, and considerably outperforming the broader altcoin market average.

SUI price has increased by 11% within the last 24-hours to hit the $1.04 level at the time of publication on Sept 12.

But, zooming out, the yellow-patch in the chart shows how SUI has been on a remarkable run over the past 40-days, setting a series of higher lows as it scored 127.56% gains between Aug 5 and Sept 12.

With this remarkable triple-digit price performance, SUI has outperformed major mega cap assets, racing into the top 30 most valuable crypto assets as its market capitalization skyrocketed above the $2.5 billion mark.

Meanwhile, during that period, market headwinds has subdued the likes of Ethereum (ETH), Bitcoin (BTC) and Solana (SOL), to less than 20% gains, respectively.

Why is SUI price Going Up?

SUI Pulls $227M Inflows from Ethereum in 30-Days

SUI is a layer-1 blockchain developed by Mysten Labs, designed to provide high scalability, low-latency transactions, and decentralized application support. More so, SUI is compatible with Ethereum Virtual Machine (EVM), enabling users to bridge assets across multiple networks seamlessly

As analysed above, SUI price outperforming the market over the past month signals the presence of an active internal bullish catalyst, nullifying bearish headwinds from the uncertain global macroeconomic landscape.

Notably, the Ethereum network has faced significant challenges in H2 2024. Firstly the performance of the newly-launched Ethereum ETFs has been lackluster.

More so, recently, declining DeFi activity has seen ETH burns fall below beacon chain staking emissions, creating unintended inflationary pressures.

On-chain data trends shows that investors making attempts to avoid the downside of Ethereum’s struggles, may have contributed to SUI’s rally this week.

Cross-chain trading activity on Ethereum’s Wormhole Bridge shows that SUI has overtaken Solana to become the most-preferred layer-1 blockchain ecosystem for DeFi users and investors seeking to bridge-out their underperforming ETH assets.

In the last 30 days, Ethereum investors have bridged out a total of $340 million worth of assets into other EVM-compatible chains. The chart above shows that the SUI blockchain attracted $227.3 million, reflecting 48.85% of Ethereum’s total outflow volumes.

When viewed over the past 90 days, Solana received the highest bridged asset volumes, exceeding $1.39 billion, compared to SUI’s $640 million at the time. A steady flow of bridged assets into a blockchain can be a bullish signal for several reasons.

First, it suggests increased demand for utility on the receiving network. This could mean that DeFi protocols, dApps, or other services on that blockchain are gaining traction, which drives ecosystem growth.

Second, it reflects growing investor confidence in the blockchain’s security, scalability, and performance, signaling further adoption and potential price appreciation for its native token.

This partly explains why SUI’s $227m surge in ETH bridge asset volumes pikes has coincided with 127.56% price surge.

SUI Price Prediction: $1.5 Breakout Imminent?

SUI overtaking Solana in the last 30 days could mark a paradigm shift in the Ethereum EVM sector and the broader DeFi space. With Ethereum still largely underperforming, the SUI ecosystem remains well-poised to receive more inflows, a move that could potentially propel its price toward the $1.5 level in the weeks ahead.

The chart indicates SUI is currently trading at around $1.04, up 11.82% on the day. A key resistance level to watch is at $1.10, where price previously stalled.

If bulls push through this, the next major resistance level will be $1.20, and breaking this could set the stage for a move toward $1.50.

On the downside, immediate support is seen at $0.90. If price drops below this, the next support level would be $0.74, marking a critical zone for bulls to defend. A breakdown below this could shift momentum bearish.