Sui-Ethena Partnership: A Liquidity-Driven Catalyst for SUI's Price Surge

The Sui-Ethena partnership has emerged as a pivotal catalyst for liquidity provider (LP) dynamics and SUI token price appreciation in late 2025. By launching suiUSDe and USDi, Sui has positioned itself as the first non-EVM blockchain to host native, high-yield stablecoin infrastructure, backed by Ethena's $14.8 billion TVL protocol and BlackRock's BUIDL tokenized fund, according to Business Wire. This strategic move not only diversifies Sui's financial ecosystem but also creates a flywheel effect for liquidity generation, directly tied to SUI's price trajectory.

Liquidity Provider Incentives and TVL Surge

The partnership's impact on on-chain liquidity is evident in Sui's Total Value Locked (TVL), which surged to $1 billion in September 2025-double the $383 million recorded in August, as reported by Blockchain.News. By June 2025, TVL had already reached $2.1 billion, driven by stablecoin adoption and cross-chain collaborations like the Microsoft partnership, as covered by The Currency Analytics. The introduction of suiUSDe (a yield-bearing synthetic dollar) and USDi (a BUIDL-backed stablecoin) further amplified this growth. For instance, Momentum DEX's HODL Yield Campaign offered up to 155% APY on liquidity pools such as SUI–USDC and xSUI–SUI, incentivizing mass participation and boosting TVL to $2.388 billion by Q3 2025, according to CryptoTimes.

These high-yield incentives are critical for attracting LPs, who benefit from both transaction fees and protocol-generated revenue. Sui's TVL recovery from a May 2025 low of $1.5 billion to $2.388 billion underscores the network's resilience and the effectiveness of Ethena's infrastructure in driving capital inflows, as noted by FXStreet.

Market Sentiment and Price Catalysts

While SUI's price dipped 4.19% in 24 hours in late September 2025, broader fundamentals suggest a bullish outlook. The token rejected at the $3.77 Fibonacci resistance level but remains near key support at $3.27, with RSI (44.55) and MACD indicators signaling weakening bearish momentum, according to MarketBeat. Analysts project a range of $2.60–$7.30 for SUI by year-end, with optimistic targets hinging on sustained TVL growth and institutional adoption; The Currency Analytics projected a $4.20 target under favorable conditions.

Institutional confidence is bolstered by Sui's expanding ecosystem:
- 3.5 million active addresses and 1,400+ developers contributing to the network, per NFTEvening.
- Strategic partnerships with Blockaid (security) and 21Shares (ETF development), highlighted by MoonDigest.
- Treasury reallocations, such as Lion Group converting 1 million SUI into HYPE tokens, reported by CoinMarketCap Academy.

The SUI Foundation's token buyback program, aimed at reducing circulating supply, further reinforces long-term value accrual, according to the SUI Foundation blog.

Risks and Counterarguments

Critics highlight short-term risks, including the unlocking of 76 million SUI tokens ($210M) in August 2025, which increased selling pressure, as noted by CoinMarketCap's analysis. Additionally, regulatory scrutiny of stablecoins and yield-generating protocols could dampen enthusiasm. However, Sui's focus on institutional-grade security (via Blockaid) and diversified stablecoin offerings (suiUSDe + USDi) mitigate these concerns.

Conclusion: A Liquidity-Driven Bull Case

The Sui-Ethena partnership has redefined the blockchain's value proposition by integrating high-yield stablecoin infrastructure with public-market access. With TVL growth outpacing broader crypto trends, APYs attracting LPs, and institutional adoption accelerating, SUI is well-positioned for a price breakout above $3.50–$3.60 resistance levels. Investors should monitor TVL trends, APY incentives, and ETF developments as key catalysts for near-term upside.