He leapfrogged Carlos Alcaraz in the rankings following his victory in Florida to climb to world No. 2 ahead of the clay season.
“Jannik has been playing amazing tennis. It’s impressive to see him keeping this way of playing,” Dimitrov said.
“He plays his shots with zero doubt. It’s just clear that it’s time for his prime tennis.
“Can he play better? I don’t know. He’s the one who has to show up and he’s the best player right now in the world.”
Dimitrov moved up to No. 9 in the world after a run where he defeated top 10 players Hubert Hurkacz, Alcaraz and Alexander Zverev to reach the championship match.
The 32-year-old had no answer to the Italian in a 6-3 6-1 defeat, but enjoyed the experience of going deep at a big event.
“I felt like a rockstar these last few days,” Dimitrov said.
“I really felt embraced, felt the love of the crowd. It’s been amazing weeks honestly.”
“When you lose matches it doesn’t matter if it’s like that or three sets. I need some days off to reassess where I’m at and get back at it, it’s the only way,” he added.
“I still can compete against these guys and do good against them. For sure Sinner is the one to chase right now.”
Although Dimitrov’s defeat came in emphatic style, with the Bulgarian only able to win one game in the second set, he still believes the new generation aren’t at the level of the ‘Big Three’ who came before.
“The toughest player I’ve ever played at his absolute prime was Roger [Federer],” Dimitrov said.
“I remember one day at Wimbledon I wanted to dig a hole and disappear. I’ve not felt that way against the other ones.”
Next up for both players is the Monte-Carlo Masters, another ATP 1000 event and the first big tournament of the clay-court season.