🚨 Why is SUI Dumping? Analyzing the Plunge Amid Cetus Protocol Exploit 🚨
The SUI token has seen a sharp decline recently, with growing concerns tied to an apparent $260M exploit targeting Cetus Protocol—Sui’s largest liquidity provider and decentralized exchange (DEX). Here’s a breakdown of the key factors behind the sell-off:
➡️ Cetus Protocol Exploit Spooks Investors
- Reports confirm Cetus, a cornerstone of Sui’s DeFi ecosystem, was hacked, causing Sui-based tokens to plummet ~90%.
- The breach has eroded confidence in Sui’s security infrastructure, especially since Cetus was a major hub for liquidity and trading activity.
➡️ Liquidity Crisis and TVL Impact
- Prior to the exploit, Sui’s Total Value Locked (TVL) hit a record $1.835B, but the attack may trigger mass withdrawals.
- Protocols like Suilend, which dominate Sui’s DeFi TVL, could face collateral damage if users flee to safer chains.