thecoinrepublic.com
Layer 1 blockchain network Sui (SUI) has scheduled a token unlock event for September 1, 2024, at 12:00 AM UTC. According to TokenUnlocks, this event will see the release of SUI tokens worth approximately $54 million. Investors and traders are now anxious to see how the event will impact SUI’s future price.
Sui Set for 64.19 Million Token Unlock
Per the TokenUnlocks data, Sui will release 64.19 million SUI tokens into the circulating supply, representing 2.47% of the current total. Based on the current market price, these tokens translate to about $54 million.
So far, 2.6 billion SUI have been unlocked, representing 26% of the total token supply. However, a large portion of the token, amounting to 5.22 billion SUI or 52.17%, remains locked under the “TBD locked” category. This is in addition to the 2.18 billion SUI, or 21.83% of the total locked section.
The SUI network conducts token unlock at the beginning of each month to enhance liquidity and support various onchain activities. The last unlock event on August 1 released 64.19 million SUI tokens, valued at $45.41 million, into the circulating supply.
The past week has seen SUI fluctuate slightly amid a broader market downturn. However, SUI seems to be recovering slowly following the upcoming unlock announcement. As of this writing, SUI price was trading at $0.8415, demonstrating a 1.4% increase in the past day.
The trading volume, however, decreased by 9.3% in the same timeframe, suggesting low investor sentiment.
Possible Reaction from SUI Token Unlock
While the scheduled token unlock aims to improve the Sui network, it will eventually add more supply to the asset in circulation. This situation can devalue the asset and increase selling pressure, potentially putting downward pressure on its price.
Investors can expect a downward movement in SUI’s price if this happens. Although SUI now stabilizes at the $0.8 range, it may experience bearish sentiments, which could push its price to $0.7. After the token unlock event, SUI’s price could drop to $0.6, which marks its major support level.
However, recent data from DeFiLlama shows that SUI has reached a new milestone: its Total Value Locked (TVL) surpassing $620 million. This achievement highlights the network’s growing impact in the Decentralized Finance (DeFi) sector.
It also reflects increasing confidence from investors and liquidity within the Sui ecosystem.
Recent Updates on the SUI Network
The SUI Network, known for its scalable infrastructure and user-friendly features, has continued to attract notable investment and crypto participation.
Recently, the Network unveiled a reward scheme for its Bridge testers. The Sui Bridge Incentive Program was introducedto test-proof the protocol before opening to the public. With the incentive announcement, Sui Bridge fulfills its end of the bargain and sustains its trust in its community.
Moreover, Sui is among other high-profile crypto tokens receiving net flows of $100 million from Ethereum. As SUI becomes increasingly popular, the project’s future looks promising.