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SUI Overtakes XRP As Institutions Choose The Former; Here’s Why

source-logo  beincrypto.com 20 May 2025 15:35, UTC
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The price of $SUI has seen a significant uptick recently, outshining $XRP in terms of growth and demand. However, it’s not just the price action that’s noteworthy. In May, $SUI has drawn the attention of institutional investors, marking a shift in demand that could have long-term implications for the crypto market.

As institutional inflows flow more freely into $SUI, the focus shifts from its price performance to its potential as a Web3-focused ecosystem.

$SUI Sees A Surge In Demand

Institutions are increasingly flocking to $SUI, as evidenced by $21 million in inflows month-to-date, making it one of the top-performing altcoins, second only to Ethereum. In comparison, $XRP, historically an institutional favorite, has seen inflows of just $8.6 million in the same period.

This shift is concerning for $XRP as institutions begin to focus more on $SUI’s potential rather than its established presence in the market. $SUI’s appeal to institutional investors is based on its scalability and focus on the Web3 space, which aligns well with current trends in decentralized finance (DeFi) and blockchain-based applications.

$SUI vs $XRP Institutional Flows. Source; CoinShares

$SUI’s increasing institutional inflows highlight a growing preference for projects that offer more than just financial transactions. $XRP, while still maintaining institutional backing with $263 million in 2025, has not been able to capture as much attention in recent weeks. $SUI’s ability to scale decentralized applications (dApps) more effectively than $XRP positions it as a better choice for institutions looking to align with long-term trends in blockchain technology.

$XRP Makes It To CME

One key factor driving institutions to $SUI is its lack of listing on major platforms like CME, unlike $XRP Futures, which further solidifies its untapped potential. $XRP Futures recently launched on CME, making the token more accessible to a wider range of investors.

However, this development also diminishes $XRP’s image as an overlooked asset, giving $SUI a unique advantage by remaining relatively underexposed. As more investors seek high-growth opportunities, $SUI offers them the chance to get in early before the token is fully accessible on major platforms.

$SUI’s decentralized, Web3-focused design also plays a large role in its growing appeal. Unlike $XRP, which is predominantly centered around payment and remittance solutions, $SUI focuses on scaling dApp ecosystems, a feature highly sought after by institutions entering the Web3 space. This increased focus on scalability and decentralized applications positions $SUI as an ideal choice for institutions looking to diversify their blockchain investments.

$SUI vs $XRP – Which Has A Better ETF Prospect?

$XRP has its own advantages, especially regarding the potential for exchange-traded funds (ETFs). $XRP’s status as an established digital asset gives it an edge when it comes to ETF approvals. The ongoing Ripple lawsuit also seems close to a resolution, pending court proceedings, likely boosting $XRP’s clean image.

The SEC’s settlement with Ripple would increase investor confidence in $XRP, giving it a stable footing in the long term. However, for the time being, $SUI’s scalability and Web3 ambitions have won the attention of institutional investors, pushing it ahead of $XRP in terms of demand. Nevertheless, $XRP ETF will likely see the light of day first.

Furthermore, Juan Pellicer, Head of Research at Sentora, discussed with BeInCrypto the major factors that could push $XRP for an early ETF.

$XRP’s decade-long trading record and early ETF filings put it first in the regulatory queue, while Sui still needs deeper liquidity and a longer track-record before the SEC is likely comfortable green-lighting a $SUI ETF.”

$XRP Price Needs A Boost

$XRP has risen by 14% over the last 30 days, but it is still fighting against a macro downtrend. The broader market conditions make a breakout rally unlikely, with $XRP struggling under resistance levels.

The current price range for $XRP is facing challenges, as a lack of bullish momentum continues to hold it back. However, if $XRP follows Bitcoin’s rise and leverages its CME debut hype, it could see an increase in price, potentially reaching $2.56 and beyond. A breakout above this level would end the downtrend and allow $XRP to surge higher.

$XRP Price Analysis. Source: TradingView

But if $XRP fails to breach this resistance level, it risks further consolidation. This would likely send it toward a drop to $2.12, falling through $2.27, invalidating any bullish predictions for the short term.

$SUI Price Wins This Round

$SUI has shown an impressive 82% rise over the past month, trading at $3.85 at the time of writing. Despite encountering resistance at $4.05, $SUI has yet to see a significant correction, suggesting continued bullish momentum.

Given the ongoing demand for $SUI, its price is expected to stay above $3.59, allowing it to break through the $4.05 resistance. A breach of this level could propel $SUI towards $4.35 or higher.

$SUI Price Analysis. Source: TradingView

On the other hand, a drop below the support level of $3.59 would suggest that investors are beginning to book profits. In that case, the price could fall to $3.18, invalidating the current bullish outlook for $SUI. However, based on institutional demand and $SUI’s infrastructure, it appears likely that its price will continue to rise in the short to medium term.

beincrypto.com