Digital asset management giant Grayscale says one layer-one blockchain is the best-positioned out of any to potentially steal market share away from Ethereum (ETH), the biggest smart contract platform by market cap.
In a new report from Grayscale Research, the firm says Sui (SUI) provides “one of the highest throughput and lowest transaction costs of any single-layer network” without relying on additional scaling layers, as Ethereum does.
Grayscale notes that Sui represents only 0.3% of its Smart Contract Platforms Crypto Sector by market capitalization. According to the firm, its Smart Contract Platforms Crypto Sector index includes crypto assets that serve as the baseline platforms upon which self-executing contracts are developed and deployed.
“Although competition within the Smart Contract Platforms Crypto Sector is likely to remain intense, Grayscale Research believes that Sui is currently the best-positioned third-generation blockchain to capture share from the market leader Ethereum over time.”
At time of writing, SUI has a fully-diluted valuation (FDV) of $25.9 billion, compared to Ethereum’s $242.9 billion.
Says Grayscale,
“Within just about a year, Sui has amassed a substantial $830 million in Total Value Locked (TVL), according to CoinMarketCap. TVL is a measure of the dollar value of digital assets deposited in smart contracts. Sui has also maintained a modest market capitalization of about $1.8 billion, according to CoinMarketCap as of July 31, 2024. This achievement gives Sui a TVL/market cap ratio of 2.16, the second highest among its peers.
For context, this ratio indicates how much value is actively used on the network relative to its market valuation. Sui’s low ratio may imply that it’s undervalued compared to its competitors. Comparatively, Ethereum, the leading platform in the smart contract space, maintains a TVL/market cap ratio of 3.16.”
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