Comparing APTOS vs SUI A Lesson in Structure
A year of volatility and competition from the chain created by Ex Meta engineers. Learn what we think at knowledge tree capital.
MARKET INSIGHTS
8/29/20243 min read
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and you should do your own research or consult a financial advisor before making any decisions.
Aptos vs. Sui: Understanding the Choice
Aptos and Sui use the same language and both are Ex Meta.
Aptos and Sui have emerged as two of the most notable blockchain platforms utilizing the Move language, but they have been developed independently by different teams. Aptos was developed by Aptos Labs, which includes many former members of the Diem project, and focuses on scalability, security, and user experience. Sui, developed by Mysten Labs, another team of former Diem developers, also emphasizes scalability and aims to offer innovative features like parallel execution of transactions and an object-centric data model
Give their shared foundation in the Move language, both can offer similar capabilities in terms of smart contract development and digital asset management, but each platform has tailored its blockchain to meet different needs and uses cases. To learn more about the similarities and differences between the chains read our article here.
So how does one choose one over another? Especially with other Layer 1 solutions garnering so much attention in this bull cycle?
Comparing Metrics: Sui Outpaces Aptos
Total Value Locked (TVL): Sui's Impressive Growth
In 2024, Sui has outperformed Aptos in terms of Total Value Locked (TVL), reaching approximately $650M, a significant 75% increase over Aptos's $371M. This achievement is noteworthy considering that Aptos had a six-month head start in the market. The higher TVL suggests that developers and users are increasingly favoring Sui for their blockchain needs.
Trading Volume: Sui Leads the Pack
At the time of writing, Sui also surpasses Aptos in trading volume, with $340M compared to Aptos's $276M. This metric further indicates a strong preference for Sui among investors and traders.
Market Cap to Fully Diluted Valuation (MC/FDV) Ratio: A Cautionary Metric
While Sui leads in TVL and trading volume, Aptos shines in the Market Cap (MC) to Fully Diluted Valuation (FDV) ratio, boasting a ratio of 0.44 compared to Sui's 0.26. At knowledge tree capital, we prioritize projects with higher MC/FDV ratios as they indicate lower potential dilution unless we have a strong understanding of the token release schedule is over a long time horizon. This helps us understand future price impact from sell offs from potential token release dates.
In this analysis, Sui has over taken Aptos in key metrics that are important for continued usage of a network that would sustain network effects which has fallen for Aptos.
Price Structure Analysis: Sui vs. Aptos
Aptos: A Cautious Outlook
Aptos has experienced significant selling pressure since its release, and its price movements in 2023 have been largely corrective rather than impulsive. This is a cause for concern, as most altcoins and Bitcoin have shown impulsive waves, pushing prices to new highs. However, Aptos has struggled to break above its previous all-time high of $18, making us at knowledge tree capital cautious about its future prospects.
Sui: Strong Recovery and Promising Structure
In contrast, Sui has demonstrated strong percentage yields and has shown a remarkable ability to recover from price retracements. . Sui's ability to bounce back from retrace levels positions it as a more attractive option for investors. From a structure perspective Sui's percentage yields have proven to strong and in the most current price retracement, Sui has been able to recover in price much more violently.
Conclusion: Sui Takes the Lead, but Caution is Key
While both Aptos and Sui offer compelling blockchain solutions, Sui has outperformed Aptos in key metrics such as TVL and trading volume. However, Aptos's higher MC/FDV ratio suggests it may have less potential for dilution, making it a more stable option in certain scenarios. At knowledge tree capital, we approach Aptos with caution and hold higher confidence in Sui's future potential.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and you should do your own research or consult a financial advisor before making any decisions. The author is not liable for any financial losses incurred based on the information provided.
