SUI has experienced a notable price increase recently, surpassing XRP in growth and demand. The attention is not solely on its price movement but also on the interest shown by institutional investors in May, indicating a shift in demand that could influence the crypto market in the long run.
As institutional funds increasingly flow into SUI, the spotlight shifts from its price performance to its potential as a Web3-focused ecosystem.
The surge in demand for SUI is evident as institutions have invested $21 million in it so far this month, positioning it as one of the top-performing altcoins after Ethereum. In contrast, XRP, traditionally favored by institutions, has only received $8.6 million in investments during the same period.
The shift towards SUI is concerning for XRP as institutions are now focusing more on SUI's potential rather than XRP's established presence in the market. SUI's appeal lies in its scalability and focus on the Web3 sector, aligning well with the current trends in decentralized finance (DeFi) and blockchain applications.
Institutional inflows into SUI highlight a growing preference for projects that offer more than just financial transactions. SUI's ability to scale decentralized applications (dApps) more effectively positions it as a more attractive option for institutions seeking to align with blockchain technology trends in the long term compared to XRP.
One of the factors driving institutions towards SUI is its absence from major platforms like CME, unlike XRP Futures. This underlines SUI's untapped potential, as XRP Futures' recent launch on CME has made it more accessible to a wider range of investors.
SUI's decentralized, Web3-focused design adds to its growing appeal. While XRP mainly revolves around payment solutions, SUI's focus on scaling dApp ecosystems makes it an attractive choice for institutions diversifying their blockchain investments.
Though XRP has advantages, particularly in terms of potential for exchange-traded funds (ETFs) and the pending Ripple lawsuit resolution, SUI's scalability and Web3 goals have gained institutional interest, placing it ahead of XRP in terms of demand. However, the possibility of an XRP ETF approval remains viable.
XRP has seen a 14% rise in the last 30 days but continues to struggle amid a broader market downtrend and resistance levels. SUI, on the other hand, has surged by 82% in the past month, trading at $3.85 currently, poised to potentially break through resistance levels and reach higher prices.
In conclusion, SUI is experiencing a stronger uptrend than XRP due to institutional interest, its Web3 focus, and scalability.