SUI leads the crypto market with a 27% weekly gain — What is behind the momentum?
2024.09.12 16:42
Sui (SUI) price is up 13% in one day, to trade at $1.02 on Sept. 12. This is part of a prevailing rebound that began on Sept. 3 and has seen Sui rise more than 27% over the last seven days.
Data from Cointelegraph Markets Pro and TradingView shows SUI rose from a low of $0.9274 on Sept. 12, climbing as much as 15% to an intraday high of $1.07.
SUI/USD daily chart. Source: TradingView
Compared against SUI, the total crypto market capitalization is up 1.15%, to $2.02 trillion. As such, SUI’s performance over the last 24 hours has seen it become the highest gainer among the top 100 cryptocurrencies by market cap.
Top gainers Sept. 12. Source: CoinMarketCap
“SUI’s recent price surge, which saw it outperform the broader market,” declared crypto markets commentator Crypto Banter in a Sept. 12 post on X.
“This is largely due to the launch of the Grayscale Sui Trust. This new investment vehicle has attracted attention and likely spurred increased demand for the $SUI token!”
On Sept. 12, Grayscale officially announced the creation and public launch of the Grayscale SUI Trust, which enables investors to gain exposure to SUI. The trust is now open to all eligible accredited investors.
Source: Grayscale
The US-based digital currency asset management firm noted that Grayscale SUI Trust functions like Grayscale’s other single-asset investment trusts and is solely invested in the token underpinning the SUI layer-1 blockchain.
“Shares are designed to track the SUI market price, less fees and expenses.”
Sui remains among the top 30 layer-1 blockchains with more than $711 million in total value locked (TVL) on the network, according to data from DefiLlama. The chart below shows that the SUI’s TVL has risen more than doubled over the last month, climbing by 107.5% between Aug. 5 and Sept. 12.
TVL on Sui network. Source: DefiLlama
The protocols behind SUI’s rising TVL are Cetus, a decentralized exchange (DEX) with a $121 million TVL that is up 22% over the last 30 days; Navi Protocol, which has a $261 million TVL; Scallop Lend at $117.75 million, DeepBook ($29.31 million), and FlowX Finance ($15.78 million).
An increasing TVL suggests high user interaction and increased confidence in the network. In some cases this increases demand for the native token and drivies its price higher.
Related: Grayscale to launch US XRP trust, paving way for potential ETF
Traders set ambitious targets for SUI price
“SUI is showing strength as it approaches a critical resistance level,” declared pseudonymous crypto analyst Cryptorphic in his latest SUI analysis on X.
Cryptorphic was referring to the $1.025 level that has been rested twice recently. According to their analysis, a breakout above this level would “unlock a major upside potential, with the upside target set at the upper boundary of the rising channel around $2.58.”
“A confirmed breakout could push SUI into a price discovery phase, opening up the potential for significant gains.”SUI/USD daily chart. Source: Cryptorphic
Meanwhile, fellow analyst Bmoon set a more ambitious target for SUI price, suggesting that it could reach $3.60 during the last quarter of 2024.
“$SUI target for this Q4 is $3.60. I’ve been bull-calling on @SuiNetwork for a few weeks and they still surprise me with how good the price holds. #DeFi on Sui is going strong also.”
SUI/USD weekly chart. Source: Bmoon
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
