Sui (SUI) continues to attract institutional attention in 2025, though its price action reflects the tug-of-war between fresh adoption and persistent supply pressures.
At press time, SUI trades at $3.75 with a market cap of $13.18 billion, down nearly 5% over the past week.
Institutional Catalysts Fueling Interest
Mysten Labs has appointed former Goldman Sachs digital assets head Mustafa Al Niama to spearhead capital markets integration, strengthening Sui’s real-world asset (RWA) tokenization strategy under the GENIUS Act framework. The move comes alongside a string of institutional signals:
21Shares launched a SUI Staking ETP on the SIX Swiss Exchange, giving European investors regulated exposure.
Mill City Ventures committed $450 million in a SUI treasury reserve, further validating long-term demand.
However, the SEC’s delayed ruling on Canary Capital’s proposed SUI ETF introduces uncertainty. Approval could mirror the inflows seen with Bitcoin and Ethereum ETFs, while a drawn-out review risks limiting momentum.
Token Unlocks Raise Dilution Concerns
Despite institutional interest, tokenomics remain a major headwind. On August 1, 2025, 44 million SUI tokens worth $171 million were unlocked, part of a monthly schedule extending through 2030. With 3.51 billion SUI already circulating (35% of its 10B max supply), investors remain wary of dilution. Analysts warn that unless demand consistently absorbs new issuance, price growth could stall – a concern amplified by a 25% liquidity drop across altcoin markets.
DeFi Growth vs. Security Risks
Sui’s DeFi ecosystem continues to expand, with total value locked (TVL) reaching $2.15 billion. BTCfi protocols now account for 10% of that figure, supported by OKX’s xBTC integrations. At the same time, projects like Walrus storage and Move VM 2.0 upgrades showcase Sui’s innovation pipeline.
But security remains a vulnerability. The $223 million Cetus Protocol exploit in May triggered a sharp sell-off and reignited debates about validator centralization. While developers emphasize network upgrades, repeated failures could undermine confidence.
Technical Outlook and Market Factors
Crypto analyst Michaël van de Poppe highlighted that Sui is holding key higher-timeframe support and may be preparing for a breakout, citing ecosystem strength and Grayscale’s Walrus Trust as positive drivers. His outlook aligns with bullish chart analyses, such as Ali Martinez’s call for a potential $7 target if momentum builds.
Still, broader market forces could limit upside. Persistent U.S. inflation and Bitcoin’s 59% dominance remain macro headwinds, suggesting Sui’s price trajectory depends on whether institutional inflows through ETPs and ETFs can counterbalance ongoing token unlock pressures.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/sui-battles-token-unlocks-as-etf-momentum-builds-will-7-be-the-next-target/