The Sui Network has been making headlines for its rapid growth and strong community support. However, the network is now on the cusp of a significant event that could have implications for the altcoin’s market dynamics. On September 3rd, a massive amount of SUI tokens, with an approximate value of $18.7 million, will be unlocked. This unlocking event, given its nature and the substantial sum involved, is likely to impact the market in the coming days.
The Sui Network has been transparent about the details of the unlocking event. According to Token Unlocks, a crypto monitoring platform, a total of 35.6 million SUI tokens will be released. This quantity represents about 5% of the current circulating supply. Interestingly, a significant portion of these tokens may be designated for the network’s early supporters.
In line with the SUI developer Mysten Labs’ initiatives, the unlocking event is expected to reward the SUI network’s Active Contributors and Early Supporters (ACES) program. Launched earlier this year, the ACES program aims to acknowledge and reward the contributions of SUI Discord members who played a crucial role before the altcoin’s mainnet launch. This move demonstrates the network’s commitment to recognizing and thanking its community members.
With a substantial amount of tokens set to unlock, there is a possibility that some early supporters may be tempted to sell their holdings, particularly if a portion of the unlocked tokens is rewarded to Active Contributors and Early Supporters. Historically, massive token unlocks have sometimes led to short-term price depressions due to the increase in market supply. Therefore, there may be a potential sell-off that could affect the market dynamics of the SUI token.
Despite the potential sell-off, it is important to note that the SUI network has experienced rapid expansion. In just 14 days, the network’s user base grew from 3 million to 5 million users. Within another three days, it further increased to 6 million active accounts. Over the past few weeks, the network has been adding approximately 1 million active accounts each week. Such impressive growth rates could cushion any potential bearish impacts resulting from the token unlock.
Currently ranked 89th among larger cryptocurrencies by market capitalization, SUI has seen a significant decline of nearly 10% in the past 7 days. Even in the past 24 hours, the asset has recorded a 1.3% decline, with a market price of $0.49 at the time of writing. These numbers indicate a challenging market environment for SUI, but it remains to be seen how the unlocking event will affect its performance.
As the SUI Network prepares to unlock a substantial number of tokens, the market is bracing for potential shifts. The unlocking event is expected to reward active contributors and early supporters while also providing staking incentives. Given the network’s rapid expansion and growing user base, there is a possibility that any negative impacts from a potential sell-off may be mitigated. However, only time will tell how the market dynamics of the SUI token will unfold in the coming days.