The Sui market is witnessing significant changes including institutional investments and tokenomics concerns. This article examines the key factors affecting the current state of Sui.
Institutional Catalysts of Interest
Mysten Labs has appointed former Goldman Sachs digital assets head Mustafa Al Niama to lead real-world assets (RWA) capital market integration as part of Sui’s tokenization strategy. This move is complemented by several institutional initiatives. 21Shares launched a SUI Staking ETP on the SIX Swiss Exchange, providing European investors with regulated access to the token. Additionally, Mill City Ventures has committed $450 million to the SUI treasury reserve, validating long-term demand. However, the SEC’s delayed decision on the proposed SUI ETF from Canary Capital adds uncertainty.
Token Unlock Concerns
Despite institutional interest, tokenomics remain a significant 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 maximum supply of 10 billion), investors are wary of dilution. Analysts warn that unless demand consistently absorbs new issuance, price growth may stagnate.
DeFi Growth and Security Risks
Sui’s DeFi ecosystem continues to expand, with total value locked (TVL) reaching $2.15 billion, and BTCfi protocols accounting for 10% of that figure. However, security issues remain a vulnerability. The $223 million Cetus Protocol exploit in May triggered a sharp sell-off and reignited debates about validator centralization. While developers emphasize network upgrades, recurring failures could undermine trust in the platform.
Amid active institutional interest, Sui faces various challenges. Tokenomics concerns and security issues remain on the agenda and could impact the growth and evolution of the ecosystem.
