During the past decade, Bitcoin (CRYPTO: BTC) has been one of the best cryptocurrency investments you could have made. Since 2013, when Bitcoin first passed the $100 mark, it has exploded in value by nearly 63,000%. But even if you're long-term bullish on crypto, you have to admit that Bitcoin may never be able to replicate that performance.

But that's perfectly OK, because there's another cryptocurrency that could be ready to make major waves. Most likely, you've never heard of Sui (CRYPTO: SUI), but it's already the 21st most valuable cryptocurrency in the world. For the year, Sui has roughly doubled, compared to about a 50% gain for Bitcoin. So what makes Sui (pronounced "swee") so special?

Can Sui topple Ethereum?

Sui is a Layer-1 blockchain network, and that means its rivals include the likes of Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL). In fact, Sui has often been described as a "Solana killer," due to its potential to overtake Solana one day. And, in turn, Solana has been described as an "Ethereum killer." So you can see where I'm going with this: Sui has the long-term potential to become the leading Layer-1 blockchain network in the world, surpassing both Solana and Ethereum.

Right now, Sui has a market cap of about $4.5 billion compared to Ethereum's $310 billion. So if Sui were to overtake Ethereum one day, that implies an 80-fold increase in market cap -- least based on today's prices. That sounds fantastic, but just keep in mind: For the past decade, other Layer-1 blockchain networks have been attempting to overtake Ethereum, but with limited success, so there also is plenty of reason to be skeptical about Sui's chances.

The good news is that Sui is starting to see significant improvement in its underlying performance metrics. For example, in August, Sui carried out a blockchain upgrade that theoretically makes it faster than Solana when it comes to transaction processing speed. Sui can now process 297,000 transactions per second, compared to 65,000 for Solana.

And Sui is also seeing tremendous gains in total value locked (TVL), a key metric for determining the overall health of a blockchain ecosystem. TVL refers to the total dollar value staked, or locked, within a blockchain. So the higher the TVL, the more attractive it becomes to users and developers. Right now, Sui is closing in on $1 billion in TVL, placing it in the top 10 of all blockchains.

A huge catalyst for 2025

Sui also has a brand new catalyst for 2025: the launch of the world's first Web3 handheld gaming device. This new product has the potential to make Sui an important player in the world of Web3 gaming. In early September, Sui started taking preorders for the $599 device, which it expects to launch in the first half of 2025.

Nearly 20 million handheld gaming devices were sold in 2023, and analyst forecast the market to expand to 29 million gaming devices by 2028. So if Sui can capture even a tiny part of this market opportunity, it could be huge. Of course, it remains to be seen how Sui's device will stack up against other entrants in the field. Sui says there will be a mix of traditional games and Web3 games offered for the device, and that Web3 games will look and feel much like traditional video games. All of which could help it move into the mainstream.

Sui will join Solana as one of only two Layer-1 blockchains with hardware devices specifically created for the world of Web3, a decentralized version on the internet. For its part, Solana has the Saga mobile phone and the Seeker Web3 mobile device. And now Sui will have the SuiPlay0x1. The launch of a new hardware device is huge for attracting new users, new developers, and, yes, new investors. For first-time crypto investors, the world of blockchain and crypto can seem very abstract, so having a physical product that you can pick up and touch can go a long way.

How high can Sui go?

In August, Sui was one of the top-performing altcoins (basically all crypto other than Bitcoin) and analysts now say that it has a chance to replicate the enormous gains of Solana as it evolved from a blockchain upstart to potential Ethereum killer. Solana rose more than 900% in 2023, so that gives you a good idea of just how rapid the ascent might be for Sui.

Of course, this is crypto, so there is no such thing as a slam-dunk investment. You should expect extreme volatility with Sui, which took a big hit during the crypto "flash crash" in August. But if you are looking for a crypto with tremendous upside potential, you might want to do your due diligence on Sui.

Should you invest $1,000 in SUI right now?

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Dominic Basulto has positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has a disclosure policy.

This Could Be the Next Cryptocurrency to Make Major Waves. was originally published by The Motley Fool