Re-rating in progress: SUI's fundamentals tell a bigger story.

The cryptocurrency market is known for its dynamism, with protocols constantly shifting in the blockchain leaderboard. Recently, a deeper analysis suggests that a recalibration might be unfolding, placing newer protocols in a favorable light.

Specifically, a comparative glance at SUI and Cardano [ADA] reveals interesting insights.

While a casual glance at the 24-hour metrics might suggest otherwise, deeper examination reveals that SUI’s DeFi TVL has slid 4.74% to $2.838 billion, contrasting with Cardano’s TVL, which went down 3.82% to $414.92 million.

Moreover, SUI’s daily active addresses have surged 1,770.9% to 1.4 million, showcasing a significant increase in user engagement. On the other hand, Cardano’s daily active addresses slipped 26.2% to 23.5k.

In terms of transaction throughput, fee generation, and revenue metrics, SUI outperforms across the board. Additionally, stablecoin supply on SUI has reached 908 million, propelling liquidity and, in turn, accelerating staking, farming, and overall network engagement.

Source: DefiLlama

Despite being just two years old, SUI is undervalued compared to the eight-year-old Cardano, an argument that is supported by data-driven trends.

With SUI’s fundamentals outperforming and user activity shifting, the calculus of Layer 1 dominance seems to be changing, suggesting a potential upward re-rating of SUI on the blockchain leaderboard.

Beyond the numbers, price action is also noteworthy. Both SUI and Cardano have faced the brunt of market FUD, but it’s the bounce-back that investors are focused on.

Looking at the monthly returns, SUI has soared 51%, presenting more of a “double-your-money” moment with a 100% return in just 30 days. In comparison, Cardano saw a modest 5% gain.

Of course, ADA still boasts a 116% gain from its Black Friday lows, while SUI has slid over 40% from its highs.

However, SUI’s latest rally has brought it back to mid-February price levels, whereas Cardano hasn’t even retested the psychological $1 mark.

This difference in price action might influence investor preferences as momentum chasers and fundamentals-driven traders are gravitating toward SUI for its structural growth and price resilience.

While the battle for L1 dominance is far from over, the message is clear: SUI, despite its youth, is quickly closing in on Cardano’s legacy, and it’s not just a rumor.