Sui Price Surge Stalls as Investors Brace for Token Unlocks

Sui Price Surge Stalls as Investors Brace for Token Unlocks

Following a strong bullish trend, the Sui token has experienced consistent growth over the past few weeks, culminating in an impressive 126% rise over the last month. However, recent market behavior suggests that this momentum may be slowing down as attention shifts to upcoming Sui token unlocks.

Sui Faces Market Volatility with $112M Token Unlock Ahead

Sui, a layer-1 blockchain, is set to release approximately $112 million worth of tokens in October, which represents 2.4% of its total circulating supply. Token unlock events often introduce significant volatility, with a potential decrease in price as more tokens enter the market and increase supply.

Despite the looming unlock, SUI has surged by 47% in the past week, largely driven by the recent launch of Grayscale’s SUI Trust. This development has instilled greater confidence among investors, further bolstered by a sharp rise in the platform’s Total Value Locked (TVL), which has quintupled since the start of the year. By September 29, Sui’s TVL had reached a record high of $1.03 billion.

While the token unlock could trigger short-term volatility, the strong growth in SUI’s TVL reflects investor optimism in the project’s long-term potential. All eyes are now on whether the altcoin’s recent gains can withstand the impact of increased supply.

Sui Price Swings Amid Market Anticipation

Today, the Sui price has been highly volatile, fluctuating between $1.70 and $1.83. At the time of writing, the token is trading at $1.80, representing a 1.42% drop in the past 24 hours. This movement is part of a broader trend over the past year, during which Sui reached an all-time high of $2.18 six months ago but has since declined by 15.78% from that peak.

Despite the recent pullback, Sui has posted impressive gains from its all-time low of $0.3643, recorded nearly a year ago, marking a staggering 403.27% increase to its current price.

According to DeFiLlama, Sui’s TVL has recently reached $997.32 million, reflecting growing capital inflows and heightened interest in the blockchain’s decentralized finance ecosystem.

Outlook: Price Fluctuations Likely After Token Unlock

Following the token unlock, Sui may experience a sell-off that could push the price down to around $1.75 or $1.70. However, the platform’s strong TVL figures suggest sustained investor confidence, which could help mitigate steep price declines.