Sui has emerged as one of the strongest-performing altcoins in recent weeks, overtaking Solana in several key metrics that point to its rising dominance in the crypto market. In the past week alone, Sui-based investment products attracted $11.7 million in institutional inflows, a sharp jump from the mere $0.3 million recorded the week before. This performance sharply contrasts with Solana, which registered $3.3 million in outflows, according to the latest CoinShares report.

The trend marks a significant shift in sentiment. While both networks have historically competed closely in terms of institutional attention, Sui appears to be taking the lead in 2025. The platform has shown consistent price strength, outperforming Solana since late 2024. Between November and mid-January 2025, Sui gained over 177% against SOL. This momentum carried into the second quarter, with an additional 60% surge during the ongoing market recovery.

On the technical front, analysts have noted that Sui has formed a bullish flag pattern, a setup often associated with continued upward movement. If confirmed, this pattern could signal a further 35% rally, potentially positioning Sui closer to its all-time high of $5.4. Currently trading near the $4 mark, such a move would represent a solid 34% price increase.

What makes Sui’s outperformance even more compelling is its rising on-chain activity. Despite Solana maintaining a lead in total value locked (TVL), daily active addresses, and raw DEX volume, Sui has posted far greater growth rates on a year-to-date basis. According to data from Artemis, Sui’s daily active addresses have jumped 137% in 2025, reaching 1.5 million users. In contrast, Solana has seen a 24% decline, with its daily active users dropping to around 3.8 million.

Sui’s DEX volume, a key indicator of speculative and trading activity within a blockchain ecosystem, has also exploded. The platform recorded a nearly 140% increase in DEX trading volume, highlighting its rising popularity among users and traders. Solana, meanwhile, saw a modest 8% uptick by comparison. These figures suggest that Sui is not only growing faster but also attracting a more active and engaged user base.

The platform’s growing appeal can also be traced to recent ecosystem developments. A major catalyst was the integration of the Phantom wallet with the Sui network. Phantom, a well-known wallet provider in the Solana ecosystem, is widely used by crypto traders and NFT enthusiasts. Its support for Sui is likely to bring in additional users, further boosting trading volume and overall market engagement.

Analyst sentiment continues to remain bullish. Crypto strategist Ali Martinez believes that Sui’s current trajectory could take the asset back to its all-time high of $5.4, marking a 34% upside from current levels. Meanwhile, analyst Kaleo observed that Sui’s price movement closely mirrors the pattern Solana exhibited during its explosive run in the 2020–2021 cycle. If the correlation continues, Sui could be preparing for a similar breakout.

Sui’s rise is also aided by a favorable market environment that currently supports risk-on assets like altcoins. While broader macroeconomic trends could still pose risks to its rally, especially if sentiment turns bearish, Sui seems well-positioned to maintain its momentum. The altcoin has shown it possesses both strong technical patterns and fundamental growth indicators—two critical factors that often precede major rallies.

With robust institutional interest, accelerating user adoption, and growing developer support, Sui is carving out a clear identity as more than just a Solana rival. It’s emerging as a major contender in the Layer 1 blockchain space, capable of sustaining its growth and possibly pushing toward new highs in the near term.