Since its launch nearly a decade ago, Ethereum (ETH 0.52%) has skyrocketed in price from around $0.30 to about $3,000, making it one of the most successful crypto investments of all time. On its path to the top, Ethereum has gained a dominant market share in just about every niche of the blockchain world and now ranks as the second most valuable crypto in the world, with a huge $354 billion market valuation.
Those are difficult footsteps to follow, but there's one cryptocurrency that is starting to remind me a lot of what Ethereum looked like in 2015. You've probably never heard of Sui (SUI 0.55%), but it has very quietly become a Top 50 crypto, as ranked by market cap. It may still be early, but there are several good reasons it could be ready for a major move.
What is Sui, and why should you care?
The first thing you should know about Sui (pronounced "swee") is that it is a Layer 1 blockchain, just like Ethereum. But it claims to be much faster, efficient, and cheaper to use than Ethereum. In theory, at least, Sui offers the potential to handle 297,000 transactions per second, with record-breaking low latency (lag time) and 100% uptime, which measures reliability. That makes the blockchain a great fit for both decentralized finance (DeFi) and Web3 gaming.
The cryptocurrency also has a world-class founding team, with top executives and developers from Facebook (before it was rebranded as Meta). While at Facebook, these technologists worked on blockchain projects such as Diem, which was Facebook's initial stab at a worldwide digital currency. Given this pedigree, venture capitalists have been more than willing to invest over $300 million into Mysten Labs, the company behind Sui.
Just keep in mind, the Sui blockchain officially launched in May 2023, so it's still very early innings here. Ethereum has literally had an eight-year head start, and it's going to be difficult wrangling away market share in key blockchain niches such as DeFi. But there is no denying that Sui is a new blockchain challenger that needs to be taken seriously, if only because of all the money and top talent behind it.
Sui has a mobile crypto strategy
Sui also has a fantastic catalyst for 2025: The launch of a new handheld gaming device that will be completely integrated with the Sui blockchain. The new device, known as the SuiPlay0x1, is still in the developmental phase, and won't be available until next year.
In terms of appearance, this new device has been compared to both a PlayStation Portable and a Steam Deck. In terms of cost, it will likely be priced around the $500 mark, so it won't be cheap. And in terms of which games will be available to play, it will include games from Sui, as well as several other gaming partners.
Image source: Getty Images.
But will this new product be a hit? That might be a question that only teenagers and young adults will be able to answer. My best advice is to create a list of all games coming to Sui, show them to any young adults or teens in your household, and ask them what they think. Early reviews on social media have been positive, but there are a lot of unknowns.
How high can Sui soar?
Back in July 2015, when it officially launched, Ethereum traded for less than $1. By March 2016, it reached the $10 mark. By May 2017, it reached the $100 mark. So, in just its first two years, Ethereum skyrocketed in value by more than 100-fold. And that was just the start, as Ethereum eventually went on to hit an all-time high of $4,892 in 2021.
Could we see the same phenomenon with Sui? Right now, Sui trades around the $1 mark. If people think that its new mobile crypto strategy is going to be a hit, Sui might start to make a move to the $10 level, if not higher. But think really big -- what if Sui starts taking market share away from Ethereum in key areas such as DeFi? The sky's the limit for how high Sui might go.
Of course, we've heard this story before when it comes to cryptocurrencies claiming to be the next Ethereum. Nobody has been able to topple the market leader yet, so maybe it's unlikely that Sui will be able to succeed when others have not. But if you missed out on Ethereum the first time around, Sui might be worth a closer look.
