What are Crypto “Seasons”?
The crypto market experiences a phenomenon known as “rotations,” or “seasons.” This can be explained as rising and falling popularity of certain narratives or ecosystems over a period of a few weeks or a few months. It is helpful to be aware of these seasons as they often predict where the liquidity is going and the best opportunities.
For example, in Spring 2024 we had a huge “Solana season.” During this time, we saw both meme-coins and utility projects moon (do very well) on Solana. One such example includes the project SolMail, which rocketed to a $60M market cap in just a few days. And of course the introduction of “Pump Fun” on Solana, which is a new token launching service that created even more hype and frenzy on Solana.
In past articles, I’ve spoken of some new “seasons” coming, such as BNB season, which I still do believe is ahead of us with the recent freeing of CZ, the former CEO of Binance.
However, there is one new season that came out of the blue, which I think you should be aware of.
What is SUI?
SUI is a layer 1 blockchain, just like Binance Smart Chain, Solana, Ethereum, and Avalanche. What sets SUI apart is its founding team, composed of former tech executives from Meta (formerly Facebook). This connection to major U.S. tech firms has provided SUI with significant VC funding and valuable networking opportunities in Silicon Valley. Developed by top blockchain engineers, SUI offers impressive transaction speeds (TPS) and rapid finality times.
SUI Season is Here!
In recent weeks, SUI has seen incredible price appreciation and has outperformed the rest of the crypto market. However, SUI’s market cap is still only ¼ that of Solana, giving it room to run even further.
You might be asking WHY we are seeing SUI season right now. I have discovered that it is better to not ask “why,” as the reasoning behind crypto seasons is often unpredictable and random. Rather, it is better to just accept that it is happening. One of my theories about why it is happening is simply that people like to feel early; they like to feel like they are investing in a new trend and not something that has already peaked recently. We can easily see that the Solana trend is NOT new at all, as such people will not be feeling “early” in continuing to invest in Solana.
This new SUI season is still very new, only a few weeks old, which leads me to believe that SUI could be the “next big blockchain” narrative in Q4 2024. This is important because most crypto experts are predicting a very bullish Q4. I think the $1.75-$2.00 range is a good place to be DCA’ing (dollar-cost averaging) into SUI, and my conservative price target would be about $2.75, and a more aggressive price target could be as high as $6.00, which would put it at a similar market cap to Solana.
SUI Ecosystem and Memecoins
Of course, we know that in these “crypto seasons,” you can also invest in the ecosystem tokens, not just the blockchain token itself – just as we saw with Solana.
The SUI blockchain is not EVM-compatible, meaning that you can’t use most of the usual wallets you’ve been using for ETH, AVAX, BNB, etc. So, there is a bit of a learning curve needed to bridge into the SUI ecosystem, but it is well worth the 30-minute investment you’ll need to make. There are SUI wallets for browsers like Chrome, Brave, and MS Edge, and also SUI wallets for mobile. Make sure not to use any scam links to wallets, always locate the true official wallets by finding links on the SUI Foundation website itself: https://sui.io/
SUI Strategy
Before considering investing in the SUI ecosystem, I am waiting until Bitcoin makes a decisive breakout above the current long-term trading range of about $55,000-$70,000. Small-cap ecosystem tokens such as those on SUI are of course more risky than large caps like Bitcoin and Ethereum, so we would first like to see a decisive upward movement in the market leaders, including the top 10 cryptos by market cap.
I will keep everyone updated on some of my favorite SUI ecosystem gems as the days progress, stay tuned right here for more!
