SUI Price Prediction

The price of SUI today is $1.81, changing within the past 24 hours for 1.02% and 7.3% over the week. SUI’s price action is characterized by the Neutral sentiment.

The current volatility index for SUI is measured at 10.21%. SUI’s circulating supply is 3.79B. In the big picture, the highest price SUI has reached is $5.3415 and its lowest observed price was $0.364.

What are Sui and SUI Crypto?

Sui is a decentralized smart contract platform that enables near-instantaneous execution even of high-complexity transactions. It is sometimes referred to as a blockchain but its underlying architecture is slightly different. Sui is a so-called object-oriented network, which implies many complicated intricacies, but suffice it to say that it enables it to process a near infinite amount of simple transactions at once.

Sui has been in development since 2021 and received over $336M in funding. Its mainnet release was on May 3, 2023. Core contributors to the platform are Mysten Labs, a research and development company founded and led by ex-Meta engineers. In other words, Sui was built with the know-how that was meant for the Meta’s stablecoin Diem (previously Libra).

The role of the SUI coin on the platform is rather standard: it serves as a gas token and is required for staking. Staking SUI also lets validators vote on matters concerning the future of Sui. There is a little more than that to the Sui token, though: the platform has a storage fund that compensates and incentivizes on-chain data storage.

The ChangeHero team has a Beginner’s Guide about Sui (SUI). Make sure you know what the project is all about before you read this forecast!

What Influences the Price of Sui Coin?

Adoption

Sui is one of the many crypto and Web3 projects building infrastructure for the new digital economy. After all, should this transition occur in reality, service providers will see some wins. Those who built the infrastructure, however, will show what real early advantage means.

This is also the reason why competition in the Layer-1 niche is so tense right now. Even though the Web3 transition is a fringe topic with the general public, it does not mean it will happen momentarily. The building blocks are being laid out and L1s race to support the most services and use cases.

In recent news, Mysten Labs, have announced a partnership with Alibaba Cloud, a branch of a Chinese e-commerce giant. The scope of the collaboration is nothing unusual: full node services and tools for Move developers. Besides, Alibaba Cloud already works with TON, Avalanche, and Near, to name a few blockchain platforms. Nevertheless, the juxtaposition of brand names in these announcements never fails to grab the headlines and boost the price.

Network Growth

As more services get built and migrate to a blockchain, more users and network activity should follow. This seems to be the case with Sui as well: its recent rally that reached a peak price seems to be fuelled by ecosystem growth. Over a week, its DEX volumes grew explosively along with total value locked (TVL). At the time of writing, the Sui network is second only to Solana among all non-EVM chains in terms of TVL.

The increase is fueled by DeFi protocols mostly working on Sui exclusively, with multi-chain protocols being less common. Most TVL is locked in lending protocols, DEXs, and liquid staking.

Speaking of staking, it is also a telling metric when viewed through this lens. Sui reports a very high rate of locked assets, above 50%. This is a good sign for network security but not for those who see SUI as a financial instrument. Firstly, the less unlocked SUI there is, the lower the liquidity. Secondly, treating staking as a means of passive income rather than participation in the network puts the Sui blockchain in the crosshairs of regulators as if it were an investment contract. This point will become especially important moving on.

Supply Dynamics

In October 2023, SUI was trading near its all-time low. The reason for it was a legal probe by the South Korean Financial Supervisory Service on allegations of supply manipulation. More precisely, a lawmaker expressed concerns that the Sui Foundation sold the interest that came from staking the locked SUI tokens in their possession. The Foundation, in turn, denied ever selling any SUI after the initial community sale.

The token release schedule also influences the SUI price in the short term. When tokens get released, traders interpret it as a bearish signal, as the value of the currently circulating token supply gets diluted. Only 11% of Sui tokens are in circulation right now, and the releases are irregular. However, they can come up to large sums in USD: the previous SUI unlock was estimated to be worth $31M.

SUI Sentiment

Which way the market swings today? Overall, technical indicators show that currently, the sentiment in the SUI markets is Neutral. The Fear and Greed Index for SUI today is in the 25 (Extreme Fear) zone.