SUI Network Will Unlock 64 Million Tokens: What is the Impact?

Bittime – Sui (SUI) has scheduled a token unlock on September 1, 2024, at 12:00 AM UTC. The value of Sui's token opening will be more than 64 million tokens. 

So, what will be the impact of unlocking this token on the price of SUI in the future? This article will discuss this further. Watch until the end.

Sui Ready to Unlock 64.19 Million Tokens

Based on TokenUnlocks data, Sui will release 64.19 million SUI tokens into the circulating supply, representing 2.47% of the total. Based on current market prices, these tokens are worth approximately $54 million.

So far, 2.6 billion SUI have been unlocked, representing 26% of the total token supply. However, most of the tokens, namely 5.22 billion SUI or 52.17%, are still locked in the "TBD locked" category. In addition, there are 2.18 billion SUI or 21.83% of the total share locked.

The SUI network unlocks tokens at the start of every month to increase liquidity and support various onchain activities. Sui's last token unlock event was on August 1 when 64.19 million tokens were released for a value of $45.41 million into the circulating supply.

In the last week, the SUI has experienced mild fluctuations amid the broader market decline. SUI seems to be recovering slowly after the upcoming token unlock announcement.

Summer: Over

At the time of writing on August 30, SUI price was trading at $0.8056 or around IDR12,513. This price was obtained because SUI experienced a decline of -1.99% in the last 24 hours.

Read Also: X Empire to Burn Coins: What Does It Mean for Investors?

Possible Reactions from Unlocking SUI Tokens

While the scheduled token unlock aims to improve the Sui network, it will ultimately increase the supply of circulating assets.

This situation can reduce the value of the asset and increase selling pressure, potentially pushing its price downwards.

Investors can expect a drop in SUI prices if this happens. Although SUI is now stable at around $0.8, it may experience bearish sentiment that could push its price to $0.7.

After the token unlock event, SUI price may fall to $0.6, which is its main support level.

However, the latest data from DeFiLlama shows that SUI has reached a new milestone: Its Total Value Locked (TVL) surpassed $620 million. This achievement highlights the growing impact of networks in the Decentralized Finance (DeFi) sector.

This also reflects increased confidence from investors and liquidity in the Sui ecosystem.

Latest Updates about SUI Network

The SUI network, known for its scalable infrastructure and user-friendly features, continues to attract high-profile crypto investment and participation.

Recently, the Network announced a reward scheme for its Bridge testers. The Sui Bridge Incentive Program was introduced to test the robustness of the protocol before it was opened to the public.

With the announcement of these incentives, Sui Bridge fulfills its part of the agreement and maintains trust in its community.

Additionally, Sui was among other high-profile crypto tokens to receive $100 million in net flows from Ethereum. As SUI continues to grow in popularity, the future of this project looks promising.

Read Also: History of Bitcoin Red Every September, How is This Year? Here's the analysis

Potential Impact on SUI Prices

Some of the impacts that may arise after SUI unlocks the token are:

1. Decline Price Temporary: Unlocking tokens may cause a temporary price drop due to additional token supply to the market. This can increase selling pressure and reduce the value of any existing tokens.
2. Increased Liquidity: On the other hand, unlocking tokens can increase liquidity in the SUI market, which can attract more investors and traders. This could have a positive impact on long-term prices.
3. Market Sentiment: The market reaction to the token unlock will depend largely on general sentiment towards the SUI project and overall crypto market conditions. If sentiment is positive, the price decline may not be too significant or may even be followed by a price increase.

SUI Future Predictions

While it is difficult to predict the future with certainty, several factors may influence SUI's future performance:

- Adoption and Use: The more projects and users that adopt the SUI network, the greater the growth potential.
- Technology Development: The development of new technologies and features can increase SUI's attractiveness to developers and investors.
- Strategic Partnerships: Partnerships with important projects in the crypto ecosystem can benefit SUI.
- Crypto Market Conditions: Overall crypto market conditions will also affect SUI's performance. If the crypto market experiences a bullish trend, SUI could experience a more significant price increase.

Conclusion

Unlock The upcoming SUI token can have both good and bad impacts on asset prices. While it can increase liquidity and investor confidence, it can also increase selling pressure and lower prices.

Investors need to monitor market developments closely to make the right investment decisions.

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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

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