Over the past few months, the SUI token has been gaining momentum in the crypto market, with investors looking forward to its future. However, the upcoming multiple large-scale token unlocking events are like a storm hidden behind expectations and may become a key factor in determining the price direction of SUI.
Unlocking is coming: the eve of the market storm
On November 1, 2024, SUI will usher in the first round of unlocking, with a total of 64.19 million tokens, worth about 133 million US dollars. This unlocking volume accounts for 2.32% of the circulating supply of SUI, which will inevitably have a significant impact on market supply and demand. Subsequently, the same number of tokens will be unlocked on December 1 and January 1, 2025. Within three months, more than 190 million SUI will enter the circulation market, which is undoubtedly a huge stress test for the price of SUI.
Will a large number of unlockings trigger a sell-off?
From historical experience, unlocking events are often accompanied by fluctuations in token prices, especially when investors choose to sell quickly after unlocking. For SUI unlocking, the situation can be more complicated. In the face of the upcoming huge unlocking, market participants may adjust their positions in advance, which undoubtedly increases the market's short-term selling pressure expectations. However, that doesn't mean a selloff is guaranteed. Investors' decisions are affected by a variety of factors, including overall market trends, project development prospects, etc. Investors' decisions are affected by a variety of factors, including the overall market trend, project development prospects, etc.
Unlocking data overview
Unlocking on November 1, 2024: 64.19 million SUI, about 133 million US dollars;
Unlocking on December 1, 2024: 64.19 million SUI, about 133 million US dollars;
Unlocking on January 1, 2025: 64.19 million SUI, about 133 million US dollars.
Total locked amount: 202 million SUI, accounting for about 20.23% of the total supply;
To be unlocked: 522 million SUI, accounting for 52.17% of the total supply.
These data indicate that more than half of SUI tokens are still locked, and unlocking plans over the next few years will continue to put supply pressure on the market.
The unlocking of SUI tokens has undoubtedly brought great uncertainty to the market. Investors need to pay close attention to market dynamics and make decisions carefully. At the same time, the project party also needs to take corresponding measures to alleviate the pressure brought by the unlocking and stabilize the token price. In this price storm, the future of SUI is full of challenges and opportunities.
So I continue to be bearish on SUI
It should be emphasized that this article is for reference only and does not represent investment advice.
