Sui (SUI) Surges 25% in a Week as Grayscale Launches SUI Trust

In a significant development for the Sui blockchain ecosystem, the price of its native token SUI has rached $1.02 on September 12, 2024. This upward momentum is part of a broader recovery that began on September 3, resulting in a remarkable 25% increase over the last seven days.

SUI/USD Price Movement and Market Performance

Data from Cointelegraph Markets Pro and TradingView reveals that SUI climbed from a low of $0.9274 to an intraday high of $1.07 on September 12, representing a 15% intraday gain. This impressive performance has positioned SUI as the top gainer among the top 100 cryptocurrencies by market capitalization, outpacing the broader crypto market’s 1.15% increase.

Grayscale SUI Trust Launch

The primary catalyst behind SUI’s recent price surge appears to be the launch of the Grayscale Sui Trust. On September 12, Grayscale, a leading digital currency asset management firm, officially announced the creation and public launch of this new investment vehicle. The trust is now open to all eligible accredited investors, enabling them to gain exposure to SUI without the complexities of directly buying, storing, and safekeeping the token.

Grayscale stated that the SUI Trust functions similarly to its other single-asset investment trusts, with shares designed to track the SUI market price, less fees and expenses. This move has attracted significant attention and likely spurred increased demand for the SUI token.

Sui Network’s Growing Ecosystem

Sui has established itself as one of the top 30 layer-1 blockchains, boasting over $711 million in total value locked (TVL) on the network, according to data from DefiLlama. The network’s TVL has more than doubled over the last month, rising by 107.5% between August 5 and September 12.

Key protocols contributing to Sui’s rising TVL include:

• Cetus: A decentralized exchange (DEX) with a $121 million TVL, up 22% over the last 30 days
• Navi Protocol: $261 million TVL
• Scallop Lend: $117.75 million TVL
• DeepBook: $29.31 million TVL
• FlowX Finance: $15.78 million TVL

The increasing TVL suggests high user interaction and growing confidence in the Sui network, potentially driving up demand for the SUI token.

Market Sentiment and Future Outlook

Crypto analysts are setting ambitious targets for SUI’s price. Pseudonymous analyst Cryptorphic identified $1.025 as a critical resistance level, suggesting that a breakout above this point could unlock significant upside potential, with a target set at $2.58.

Another analyst, Bmoon, proposed an even more optimistic outlook, suggesting that SUI could reach $3.60 during the last quarter of 2024.

The positive sentiment is further reflected in the derivatives market. Data from Coinglass shows that the total open interest for SUI jumped by over 40% in the past 24 hours, from $212 million to $275 million. Additionally, SUI’s aggregated funding rates have turned positive, indicating a shift in market sentiment favoring long positions.