Grayscale Expands into Sui Protocols as SUI Rises 5.06%

Grayscale’s recent expansion into Sui’s core protocols has sent ripples through the cryptocurrency market, with the SUI token surging 5.06% to $3.87 within 24 hours of the announcement [1]. On August 12, the asset manager introduced two new trusts focused on the Sui blockchain’s DeepBook (DEEP) and Walrus (WAL) protocols, moving beyond its existing Sui Trust and marking a strategic shift toward protocol-level investments [2].

These trusts are available to accredited investors and offer exposure to the foundational components of Sui’s architecture—DeepBook’s high-speed order-book system and Walrus’s on-chain data storage. Both protocols are designed to facilitate low-latency trading and scalable, privacy-preserving data solutions, addressing key performance bottlenecks in the broader blockchain ecosystem [3]. Grayscale’s decision highlights an institutional pivot toward infrastructure-oriented tokens, signaling confidence in Sui’s ability to support institutional-grade liquidity and decentralized finance use cases [4].

Rayhaneh Sharif-Askary, Grayscale’s Product & Research Head, emphasized the importance of these protocols in driving innovation within the Sui ecosystem, while Adeniyi Abiodun, CPO of Mysten Labs, called the move a “seminal moment” for the network’s development. However, Grayscale has also issued clear warnings about the risks involved. As new and untested assets, DEEP and WAL carry high volatility and no assurance of secondary market trading authorization [5].

The market responded immediately, with SUI’s trading volume spiking by 32.53% to $1.88 billion in a single day. The token’s price now sits above the $3.75 mid-Bollinger Band, with resistance levels identified at $4.25, $4.50, and $5.00 based on Fibonacci retracement levels. A drop below the $3.25 support level could lead to further downside, analysts noted [6].

Technical indicators suggest a bullish setup for SUI, with the token recently breaking out of a triangle pattern and maintaining higher lows. Analyst Lingrid pointed to this as a potential catalyst for a quick rally, predicting a price target of $4.20–$4.50. More optimistically, analyst Kamran Asghar forecasts a potential short-term jump to $6.20 [7].

While the broader crypto market remains cautious amid regulatory uncertainties, Grayscale’s move is a significant endorsement for Sui. The firm’s inclusion of protocol-level assets reflects a growing institutional interest in blockchain infrastructure that supports high throughput and low latency—key differentiators in a competitive market. However, Sui must continue to prove its long-term utility and stability to retain this institutional backing [8].

The SUI price reaction suggests that investors view Grayscale’s move as a positive development, even if the broader market remains stable. The key question now is whether this institutional support will lead to sustained growth or merely a short-term price bounce. With Grayscale’s endorsement and Sui’s focus on modular design and move-to-earn capabilities, the network is taking clear steps toward broader adoption and recognition [9].

[1] https://coinmarketcap.com/community/articles/689c7e2cb2de5232cc53594d/