Sui and Sei remain among the biggest underperformers since 2024 started, decreasing by a combined 210%. This makes the two tokens unprofitable, with many investors disappointed with how the past few months turned out for them. Here’s an analysis of each of the two tokens and the reason behind their decline.
Massive Combined Decline of Over 210% in One Year For Sui and Sei
The past year has been catastrophic for Sui and Sei, with their prices dropping to levels that investors didn’t expect. Below, we will examine the price declines of each token for the past year.
Sui Declines by Over 90%
Sui has also declined within the past year, remaining unprofitable in the monthly, three-month, and year-to-date data. According to CoinMarketCap data, Sui had a decline of around 28% in the past month, decreasing from over $1 to less than $0.57. Moreover, the price declined by 50% and 12% in the three months, and YTD data shows a bearish outlook. The highest price for this token was $2.17 back in March, and the current price is 66.29% lower than the all-time high price.
Sei Declines By Over 130%
Sei seems to be the one with the most declines, assuming both tokens are compared with declines of over 130% in the past year. Note that this is a combination of its downturn in the past month, 90 days, and its year-to-date data is also in losses.
According to data from CoinMarketCap, the price of this token decreased by more than 30% in One month. Apparently, there was a price decline from $0.55 to less than $0.24. Moreover, in the three-month chart, the price reduced from $0.68 to $0.23, representing a 48% decline.
Another piece of data from CoinGecko shows that the highest price paid for Sei (SEI) was $1.14, recorded on March 16, 2024. Thus, the current price of this token is 71.03% lower than the all-time high. Nevertheless, it is also 246.18% higher than the all-time low. Despite these changes, Sei is still down by over 50% in the past year.
Why are Sui and Sei Underperforming?
For Sui, one of the key issues is the concentration of Total Value Locked (TVL) in a few protocols, particularly Cetus and NAVI, which hold over 70% of Sui’s TVL. This concentration indicates a lack of diversification within the ecosystem, suggesting that not many projects are generating significant volume on the blockchain.
Besides the downturn from the broader crypto market, Sui’s theoretical high transaction per second (TPS) capability of 297,000 is not being realized in practice. In fact, the actual TPS averaged only around 4. The massive difference between the theory and reality indicates issues with adoption and activity on the network
Just like Sui, the primary concentration of Sei’s TVL is between two networks, Yei Finance and Dragon Swap. The two hold over $63 million of the $79 million total value locked. Furthermore, the price decline of Bitcoin has also been affecting cryptocurrencies such as Sei.
Conclusion
Sui and Sei are two cryptocurrencies that have been underperforming in the crypto market since the year started, recording a combined decline of over 210%. Between the two tokens, Sei seems to have the most drop, with over 50% losses in the YTD data and over 80% losses in the monthly and three-month charts. One of the primary causes of the decline between the two cryptocurrencies is the lack of diversification within their ecosystem. Moreover, the downturn of Bitcoin in the past few months has greatly affected the price of the broader crypto market.
Cover Image from Microsoft Designer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
