Its Trace registry has recorded more than 250 million data contributions since launching in June. It now processes over three million receipts daily, according to the Sui Foundation.
Under the agreement, $DATA Network and Trace will operate on Sui. Walrus, a data storage platform connected to Sui, will store information used by $DATA Foundation’s applications.
With the $30 million investment, Sui will become $DATA Network’s largest institutional investor. Surprisingly, neither the announcement of the acquisition nor the valuation and number of tokens acquired by Sui were provided.
Upon completion, no independent blockchain from $DATA Network will be running anymore. Tokens will map to the new Sui blockchain on a one-to-one basis, meaning that a user who owns X tokens should be getting X tokens on the new chain instead.
Locked tokens and the current release schedule stay intact, and it is proposed that the old network will be running until migration is complete.
No exact date has been announced. Sui and $DATA Foundation noted that they would provide the details about the timeline for the switch before it occurs.
$SUI price struggles despite the announcement
After a crash of roughly 5.6%, $SUI was trading above the $1.07 level. The fall made it trade below its short-term average around the $1.09 level.
It still remains well above the levels seen before its sharp September rally. But trading activity has eased since that advance, suggesting buyers have not returned with the same strength.
The closest level to look at will be the $1 area. If $SUI falls below it, the next support is sitting around the $0.97 price level, where there are two longer-term averages.
The short-term outlook could become more positive once it moves beyond the $1.10 mark, which would be another point of challenge near the $1.20 mark [an area from which the uptrend had lost momentum during earlier attempts].
The chart does not indicate that investors reacted to the $DATA Network arrangement by taking it as an instant driver to buy.
However, the significance could stem from the fact that the migration attracts persistent activity to Sui after completion, rather than acting as a short-term incentive for price change.
Final Summary
- Sui Foundation is investing $30 million as the $DATA Network protocol and token are moved onto Sui.
- $SUI, despite falling over 5%, has to defend the $1 price area following this announcement.
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