Market News

SUI Faces Price Challenges Despite Grayscale's Innovative ETF Launch in the US

The launch of the first U.S. spot SUI ETFs by Grayscale and Canary Capital has not halted SUI's decline, which has dipped below $1.

These ETFs, offering integrated staking rewards, were intended to drive institutional participation in the SUI ecosystem.

Despite the introduction of GSUI and SUIS, SUI's price has dropped nearly 40% over the past month, trading around $0.95 at the time of reporting.

Market sentiment remains weak, indicated by declining trading volumes and a nearly 30% drop in derivatives open interest.

Total value locked in Sui’s DeFi ecosystem has also fallen back to approximately $565 million, mirroring pre-2023 market conditions.

Analysts highlight that maintaining a price above $0.88 is crucial, as failure to do so may lead SUI to test lower support levels near $0.70.

An upcoming token unlock on March 1, releasing around 43 million SUI tokens, could further influence the token's volatility.

Though the ETFs signal enhanced institutional interest, skepticism remains prevalent due to current liquidity challenges and market dynamics.

Overall, the impact of these ETFs on SUI's recovery will hinge on how effectively the token can engage cautious investors amid broader market headwinds.

As SUI navigates this evolving landscape, its ability to leverage recent developments will be pivotal in determining its future trajectory.