SUI and Solana have recently attracted attention due to a significant shift in institutional interest. Over the past few weeks, SUI has gained significant popularity, outperforming Solana to become one of the leading assets for institutional investment.
The question arises: is this a temporary trend, or are institutions really shifting their focus to SUI as the next big contender in the blockchain space?
Sui is outpacing Solana
April was a pivotal moment for SUI as it surpassed Solana in institutional investment volumes. SUI attracted $14.7 million in investments, while Solana experienced an outflow of $13.9 million during the same period.
Even since the beginning of the year, SUI is creating serious competition for Solana, with investments of $72 million. This shift in investor sentiment may indicate broader changes in the market, suggesting that institutions prefer SUI over its well-known competitor. This trend is particularly important given the performance of both assets. While Solana has long been considered a strong player in the blockchain space, the recent rise of SUI indicates that investors may diversify their assets among leading platforms.
Juan Pelliser, senior research analyst at IntoTheBlock, shared similar views with BeInCrypto regarding SUI.
"Institutions diversify rather than replace Solana with SUI. A portion of capital has shifted, with signs that 60% of Solana outflows have moved to SUI, attracted by its growth potential and newer technologies. However, Solana's market capitalization of $73 billion, established ecosystem, and strong ETF momentum keep it as a core asset, complementing SUI's role in diversified institutional portfolios," said Pelliser of BeInCrypto.
The macroeconomic momentum of both assets should also be taken into account, especially when comparing Grayscale Trusts for SUI (SUIFUND) and Solana (GSOL). Over the past six months, the net asset value (NAV) of Grayscale SUI Trust has increased by 71.8%, while Solana's NAV has remained the same.
This stark contrast in performance highlights the difference in demand for these tokens and the subsequent impact on their investment instruments. Additionally, CBOE recently filed for approval with the U.S. Securities and Exchange Commission (SEC) for a SUI ETF from Canary Capital. However, Pelliser believes this may not happen anytime soon.
"SUI ETF is less likely to be approved before Solana ETF. Solana's filing in June 2024, its market capitalization of $73 billion, and support from major firms such as Fidelity prioritize it for decisions in mid-2025. SUI's filing in March 2025 and its smaller market presence face delays due to its new status and past allegations, though pro-crypto SEC may allow approval sooner than expected."
Comparison of price dynamics between SUI and Solana
Both SUI and Solana have experienced price declines since the beginning of the year, with SUI down 14% and Solana down 19%. However, April marked a significant shift for both tokens, with SUI rising by 56.6% to $3.54, while Solana showed a more modest increase of 21%, reaching $151.
Despite the rise in April, it's important to note the difference in market capitalization between the two assets. The $11 billion growth in Solana's market capitalization in April was equivalent to the entire market capitalization of SUI. This difference in market capitalization growth suggests that while SUI's growth is impressive, Solana's larger market capitalization gives it a more established market presence. However, SUI's strong performance in April highlights an internal shift in interest, driven by its more scalable chain and increasing partnerships. This trend may continue, fueling further growth for SUI in the second and third quarters as it builds its momentum. However, SUI is still far from surpassing Solana as the institutional favorite.#Write2Earn #BinanceSquare #BinanceAlphaAlert #Binance #crypto $SUI