The price of Sui (SUI) recorded a sharp drop of 4.71% on August 5, attributed to trader sell-offs and decreasing altcoin interest.
Overview of Sui's Price Drop
On August 5, Sui fell by 4.71%, dropping from a daily high of $3.61 to $3.39, according to crypto.news data. This decline outpaced the overall crypto market's 1.57% drop and modest reductions of around 3% from Ethereum and Solana, highlighting the vulnerability of altcoins during Bitcoin's strength.
Macroeconomic Factors and Market Impact
This decrease followed a $162 million token unlock on August 1, marking the largest such event for Sui. With new tokens entering circulation, selling pressure escalated, compounding losses already triggered by macroeconomic headwinds and altcoin fatigue. SUI has now lost over 20% since peaking near $4.40 earlier this month, erasing approximately $3 billion in market capitalization.
Fundamentals of Sui and Price Impact
Despite strong fundamentals, such as total value locked remaining near $2 billion and active network signals, interest in SUI has waned. On August 5, AMINA Bank became the first regulated entity to offer SUI custody and trading. However, the ongoing price action suggests that current fundamentals are insufficient to support high valuations in a market increasingly shaped by macro narratives.
With Bitcoin's dominance growing and macroeconomic uncertainty lingering, interest in altcoins, including Sui, continues to fade. Despite positive fundamental trends, SUI's price remains under pressure.
