Sui as Ethereum’s Biggest Challenger, Says Grayscale
Grayscale Research has identified Sui as a strong contender among next-generation blockchains that could challenge Ethereum’s dominance in the smart contract space.
In its latest analysis, the firm points to Sui’s ability to process high transaction volumes at minimal costs, all without requiring additional scaling layers—a key differentiator from Ethereum’s reliance on solutions like rollups.
Despite its relatively small footprint, Sui has been making significant strides in the blockchain industry. It currently represents just 0.3% of Grayscale’s Smart Contract Platforms Crypto Sector by market cap, but the firm believes it is the most well-positioned third-generation blockchain to gradually gain market share from Ethereum over time.
At present, Sui has a fully diluted valuation (FDV) of $25.9 billion—dwarfed by Ethereum’s $242.9 billion. However, its rapid adoption has been notable, with the network accumulating an impressive $830 million in Total Value Locked (TVL) within just a year. TVL measures the total value of digital assets locked in smart contracts, and for Sui, this figure signals strong engagement from users and developers alike.
A key indicator of Sui’s potential is its TVL-to-market cap ratio, which stands at 2.16—one of the highest among competing blockchains. This ratio reflects how much value is actively utilized on the network relative to its overall market valuation. A higher ratio suggests stronger utility, and in comparison, Ethereum currently holds a TVL-to-market cap ratio of 3.16.
With its growing adoption and efficient transaction model, Grayscale suggests that Sui could emerge as a major force in the blockchain space, offering a competitive alternative to Ethereum as the industry continues to evolve.
Editorial Team
Reporter at Coindoo
