The unlocking of 74 million $SUI tokens will take place on May 1, 2025, which is a critical event that could impact the token's price.
In October 2024, the unlocking of tokens worth $100 million (64 million SUI, 2.4% of supply) initially caused short-term volatility, but the price of SUI sharply increased afterward due to bullish factors, such as the launch of Grayscale's SUI Trust and rising total value locked (TVL). Similarly, the unlocking in September 2024 led to a 20% price drop, but the price subsequently doubled.
Token unlocks often increase selling pressure, but strong fundamentals (e.g., ecosystem growth, institutional interest) can offset bearish trends. For example, SUI's TVL recently surpassed $1 billion, signaling investor confidence.
Most unlocks are allocated to early investors and liquidity providers (e.g., 61% for Series A/B investors in previous unlocks), who may sell tokens for profit.
Community reserves (20%) and treasury allocations can be used to grow the ecosystem, reducing immediate selling pressure.
The current price of SUI is $3.69, which is 915% higher than the historical low, indicating strong long-term momentum.
Technical indicators, such as the 20-day EMA above the 50-day EMA, have historically signaled bullish trends.
While unlocks may cause short-term volatility, strong fundamentals of SUI and historical resilience indicate potential for recovery. A balanced approach (e.g., partial selling or setting stop-loss orders) can mitigate risks while allowing for profit from future increases. Always align your decisions with your personal risk tolerance and investment goals.
