After a strong bullish trend, the Sui (SUI) price has consistently climbed over recent weeks. This upward momentum has culminated in an impressive 126% increase in the past month. However, current trends indicate a slight cooling in the market. This shift occurs as investors anticipate upcoming Sui token unlocks.
Sui Price Faces Volatility Ahead of Token Release
Sui Price, a layer-1 blockchain, is on the brink of releasing approximately $112 million worth of tokens, accounting for 2.40% of its total circulating supply. This event is scheduled for October. Such token releases often lead to market turbulence and, potentially, a decrease in price due to the sudden influx of supply.
However, the value of SUI has surged by 47% in the past week, primarily fueled by Grayscale’s launch of the SUI Trust. This has significantly boosted investor confidence, as evidenced by the Total Value Locked (TVL) in the project, which has quintupled since January. As of September 29, the TVL reached a record peak of $1.03 billion.
🔓 Weekly Cliff Unlocks : 30 Sep – 6 Oct ’24 🔓
🔥 $ 465.9m+ 🔥
🌟 Unlock Highlights 🌟$ENA (22.53%) – $172.08m$SUI (2.40%) – $112.34m$OP (2.50%) – $57.67m$IMX (2.02%) – $55.53m$ZETA (13.43%) – $36.84m$DYDX (1.57%) – $10.70m$MAV (9.56%) – $8.36m
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( % of cir. supply) pic.twitter.com/XM9xKK8jJy— Token Unlocks (@Token_Unlocks) September 30, 2024
While the upcoming token unlocks might initially trigger high volatility, the robust growth in SUI’s TVL suggests enduring hope in the cryptocurrency’s value. Observers and investors are closely watching to see if the altcoin’s recent gains can withstand the increased market supply.
The SUI price has been volatile today, oscillating between $1.70 and $1.83. At the time of writing, the cryptocurrency trades at $1.80, marking a 1.42% decrease over the past 24 hours.
This recent fluctuation follows a notable trend over the past year, where Sui hit an all-time high of $2.18 six months ago, only to retract by 15.78% from its current price. Despite the day’s losses, Sui has shown significant growth from its all-time low of $0.3643, recorded nearly a year ago, demonstrating a robust increase of over 403.27%.
According to DeFiLlama, the total value locked (TVL) in Sui has reached an impressive $997.32 million. This figure highlights the growing interest and capital inflow into the Sui platform, signaling strong market confidence and a robust expansion in its decentralized finance ecosystem.
After the token unlocks, Sui may experience a sell-off, potentially driving prices towards $1.75 or even $1.70. However, the robust Total Value Locked indicates sustained market confidence, which might cushion sharp declines.
Frequently Asked Questions (FAQs)
Approximately $112 million worth of Sui tokens, accounting for 2.40% of its total circulating supply, is scheduled to be released.
The token unlock event is scheduled for October, though specific dates might vary.
Token unlocks increase the available supply abruptly, which can lead to price volatility as market participants react to the influx of new tokens.
Coingape Staff
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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