SUI Token Records 300% Growth Amid Remarkable DeFi Momentum
Summary:
SUI, the native token of the Sui smart contract platform, has shown a 300% growth over the past three months, gaining attention in the DeFi sector. Despite allegations of supply manipulation in October 2023, recent data indicates improving fundamentals, notably a 2,200% rise in trading volume and an 828% increase in total locked value (TVL). With the support of projects such as Cetus, Navi Protocol, Scallop Lend and others, TVL reached $319 million. The article also notes increasing trader interest, with a high Relative Liquidity Ratio. However, it warns that the token appears massively overbought and could face a correction from profit-taking.
The native cryptocurrency of the Sui smart contract platform, SUI, has been creating ripples in the decentralized finance (DeFi) world following its impressive 300% growth over the past three months. Earlier in October 2023, the currency experienced a dip in price and trader interest due to allegations of supply manipulation by South Korean regulators. However, recent indicators from technical and on-chain data suggest that the upturn in SUI's price is rooted in enhanced fundamentals.
An increase in the broader cryptocurrency market has certainly contributed to SUI's progress. Yet, more importantly, changes in metrics indicating the project's overall health, growth, and sustainability must be observed. CoinMarketCap data reveals that SUI's trade volume eclipsed $950 million on January 13, marking a remarkable growth of 2,200% within three months.
DeFi data from DefiLlama also shows that SUI's total locked value (TVL) has undergone a consistent rise over the same period, ascending over 828% from $54.39 million in early October 2023, to its current position at $319.23 million.
This growth has not gone unnoticed, with Greg Siourounis, the Managing Director of the Sui Foundation, praising the achievement of $300 million in TVL. Noteworthy contributors to this rise in TVL include decentralized exchange Cetus ($62 million locked), Navi Protocol ($60 million in TVL, up 485% in the last 90 days), Scallop Lend ($54 million), DeepBook ($33 million), and FlowX Finance ($31 million).
Having launched its mainnet recently, Sui has managed to gather several new projects with Solana's significant lending protocol, Solend, also expressing expansion plans into Sui.
SUI’s surge in price has been mirrored by a growing interest among traders, with an increased relative liquidity ratio (RLR). This ratio compares the 24-hour trading volume to the market cap, indicating that a higher ratio equates to greater trader interest and token liquidity.
SUI has shown strength in short-term key levels, bouncing back from a $0.36 price zone to achieve a swing high of $1.4486 on January 15. The majority of moving averages continue upward, and with an RSI of 68, it signals that the market is still in favor of bullish traders.
Key levels to look out for include the $1.40 and $1.44 swing high, with further obstacles potentially appearing at the psychological levels of $1.60 and $1.70. However, it is essential to remember that the RSI indicates SUI is considerably overbought, suggesting the current correction could extend further as profit-taking by sellers likely continues.
On the downside, the first cushion could be provided by the 23.6% retracement level at $1.92. Further support could lie at the $1.0 mark, as well as the 61.8% retracement level at $0.80.
This report does not constitute investment guidance or suggestions. Any investment or trading move entails risk, and it is advised that readers perform their own research before making any decisions.
Published At
1/16/2024 10:08:18 PM
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