The SUI cryptocurrency faces a significant downturn following a recent token unlock event, sharply affecting its market capitalization.
Market Situation for SUI
SUI experienced a sharp decline starting Monday, marking its first significant bearish shift since late June. Over the past days, SUI lost over $3 billion in market cap, translating to a drop of over 20% from its $4.4 peak to a price of $3.36 at press time.
Aftermath of Token Unlock
The latest decline followed the much-anticipated token unlock event on August 1, when approximately 56.91 million new SUI tokens entered circulation. This token unlock made SUI have the highest number of tokens added this month and likely contributed heavily to the selloff as investors exited the asset in anticipation of potential downside.
Overall Performance of SUI Network
Despite the current downturn, SUI network has shown remarkable performance over the last few months. In July, the decentralized exchange (DEX) volume surged to a record high of $14.26 billion, indicating continued robust activity. The total value locked on the platform also reached a historic peak of $2.29 billion.
The SUI price faces notable challenges following the token unlock, yet network activity remains strong. The potential for recovery hinges on market sell pressure dynamics.
