The crypto market kicked off Q3 with a strong price surge, with nearly $500 billion flowing in just two weeks. Excluding Bitcoin (BTC), there is still capital worth up to $160 billion entering the broader space.
With strong capital inflow, Sui (SUI) recorded a breakout by rising over 40% in July. Currently trading around $3.85, this altcoin shows superior performance compared to all other major crypto assets.
SUI/BTC turns green as the rotation begins
The SUI/BTC ratio just recorded the strongest daily increase in over two months, bouncing back by 10.14%, recovering strongly after the decline at the end of Q2.
In contrast, both ETH/BTC and SOL/BTC are stalling at resistance levels.
The signal is very clear. Capital is flowing into SUI. It has increased by over 30% this week, closely following Bitcoin's 10% breakout and establishing typical altcoin rotation.
Additionally, SUI's market capitalization has increased by 44% since July, surpassing Ethereum's (ETH) 9.2% increase during the same timeframe.
However, can this altcoin maintain its leading position? The price is currently approaching an important supply zone, where previous selling pressure has hindered the uptrend.
SUI has often followed BTC in this cycle
SUI has recorded strong upward momentum, climbing 13.52% in a day and trading at $3.96, just before the important supply threshold of $4.
Interestingly, each time BTC recovers in this cycle, it leads to sharp green candles on SUI's daily chart, reinforcing the strength of the SUI/BTC model.
But importantly, the total value locked (TVL) of SUI just reached an ATH of $2.219 billion, showing real appeal from the ecosystem.
High TVL means more capital is being allocated to SUI's DeFi protocols.
Users are not just chasing prices; instead, they are locking value in chains, signaling deeper participation in the ecosystem.
L1 Divergence: Fees and Capital Flow
SUI is no longer solely dependent on BTC. In addition to the growth driven by BTC, SUI is attracting real liquidity, boosting monthly fees by 42% to $42,000, double that of Ethereum during the same period.
If this divergence continues, this altcoin is shaping up for a breakout in Q3, with a spectacular breakout above $4 potentially being just the first confirmation of that trend.
