2023-05-04
According to Sui official Twitter account, Sui mainnet went live on May 3, 2023 and SUI are available for trading on crypto exchanges on May 3 as well. Price of SUI trading on May 4 is $1.43 per token.
What should be the fair price of SUI?
First
let’s take a look at the market cap of smart contract blockchains.
Valuation of Smart Contract Blockchains
1.
Ethereum $228 billion
2.
BNB $50 billion
3.
Cardano $13 billion
4.
Polygon $9.2 billion
5.
Solana $8.8 billion
6.
Polkadot $6.8 billion
7.
Avalanche $5.6 billion
8.
Cosmos $3.1 billion
9.
Aptos $1.8 billion
10.
Near Protocol $1.6 billion
(As
of May 4,
2023)
Looking
at the valuation of smart contract blockchains. SUI fair price should be around
$2 billion because SUI and Aptos are very similar in term of technology.
Both
Aptos and Sui are overprice. Aptos has fully diluted market cap of $10.3
billion. Whereas, SUI has fully diluted market cap of $14.2 billion. Making the
market cap of Aptos and Sui even more expensive than Solana and Polygon. The
fair price of SUI should be around $2 billion market cap at a fully diluted
market cap.
In
the end the market will value cryptocurrencies using fully diluted market cap.
The market values Bitcoin and Ethereum using fully diluted market cap. Fully
diluted market cap is calculate by max supply times the price of the token.
As
more SUI tokens get into circulation the value of SUI will be diluted. SUI
currently has 528 million circulating supply and 9.472 billion SUI are not
circulate in the market yet.
The
total supply of SUI is capped at 10 billion. In order for SUI to have $2
billion market cap, the price of SUI need to be $0.2 per SUI. The reason
why the price of SUI should be $0.2 because the fair price of SUI is $2 billion
market cap.
