Sui Battles Token Unlocks as ETF Momentum Builds – Will $7 Be the Next Target?
The post Sui Battles Token Unlocks as ETF Momentum Builds – Will $7 Be the Next Target? appeared on BitcoinEthereumNews.com.
Altcoin Analysis Sui (SUI) continues to attract institutional attention in 2025, though its price action reflects the tug-of-war between fresh adoption and persistent supply pressures. At press time, SUI trades at $3.75 with a market cap of $13.18 billion, down nearly 5% over the past week. Institutional Catalysts Fueling Interest Mysten Labs has appointed former Goldman Sachs digital assets head Mustafa Al Niama to spearhead capital markets integration, strengthening Sui’s real-world asset (RWA) tokenization strategy under the GENIUS Act framework. The move comes alongside a string of institutional signals: 21Shares launched a SUI Staking ETP on the SIX Swiss Exchange, giving European investors regulated exposure. Mill City Ventures committed $450 million in a SUI treasury reserve, further validating long-term demand. However, the SEC’s delayed ruling on Canary Capital’s proposed SUI ETF introduces uncertainty. Approval could mirror the inflows seen with Bitcoin and Ethereum ETFs, while a drawn-out review risks limiting momentum. Token Unlocks Raise Dilution Concerns Despite institutional interest, tokenomics remain a major headwind. On August 1, 2025, 44 million SUI tokens worth $171 million were unlocked, part of a monthly schedule extending through 2030. With 3.51 billion SUI already circulating (35% of its 10B max supply), investors remain wary of dilution. Analysts warn that unless demand consistently absorbs new issuance, price growth could stall – a concern amplified by a 25% liquidity drop across altcoin markets. DeFi Growth vs. Security Risks Sui’s DeFi ecosystem continues to expand, with total value locked (TVL) reaching $2.15 billion. BTCfi protocols now account for 10% of that figure, supported by OKX’s xBTC integrations. At the same time, projects like Walrus storage and Move VM 2.0 upgrades showcase Sui’s innovation pipeline. But security remains a vulnerability. The $223 million Cetus Protocol exploit in May triggered a sharp sell-off and reignited debates about validator centralization.…
Filed under: News - @ August 16, 2025 6:27 pm