SUI Eyes Growth Amid ETF Filings and Upcoming Privacy Upgrade

• SUI's TVL hit $2.63B in October 2025 while DEX volume plunged 50%, revealing liquidity fragility.
• Developer activity surged 219% since early 2024 with 1,300+ monthly active builders on Sui.

Sui (SUI) faces a pivotal moment as institutional interest grows through ETF filings and a major protocol upgrade. The layer-1 blockchain's upcoming privacy features could unlock regulated payment use cases by 2026. Meanwhile, Bitwise's proposed hybrid ETF structure offers a potential gateway for billions in institutional capital. These catalysts emerge against a backdrop of strong ecosystem growth but persistent liquidity concerns.

How Will Sui's Native Private Transactions Reshape Institutional Adoption?

Sui Network will embed private transactions directly into its protocol layer by 2026. These features work by default without user opt-in, ensuring confidentiality while meeting institutional transparency needs. Only senders and recipients can view transaction details under this new system.

The upgrade employs battle-tested privacy primitives rather than experimental tools to maintain Sui's throughput. Institutions gain compliant confidentiality for payments and DeFi through this built-in approach. This integration directly counters quantum threats with post-quantum cryptography. Financial entities require such balanced solutions for sensitive blockchain activities.

What Does Bitwise's ETF Filing Mean for SUI's Liquidity and Demand?

Bitwise submitted SUI ETF paperwork to the SEC on December 30, 2025. Its hybrid model allocates up to 60% to direct token holdings and 40% to derivatives or ETPs. Approval would provide regulated institutional exposure to SUI around mid-March 2026.

The proposed fund falls under Bitwise's strategy ETF series targeting specific blockchain protocols. Sui appears alongside DeFi leaders like AAVE and privacy coin ZEC in the filings. This marks Bitwise's largest single-day crypto ETF submission ever recorded.

Why Is SUI's Fundamental Strength Not Reflected in Its Price?

SUI's TVL reached $2.63 billion by October 2025 amid institutional inflows. However DEX volume collapsed 50% that same month, exposing liquidity fragility. October's token unlocks added 43 million SUI to circulation, amplifying selling pressure.

Developer growth remains robust with 1,300-1,400 monthly active builders. Recent listings on Robinhood and Coinbase NY improved U.S. retail access. Technical upgrades like Mysticeti consensus slashed latency to 390 milliseconds. Market conditions must improve to close this valuation gap.

Sui maintains significant ecosystem advantages despite thin order books. The network's object-centric architecture enables parallel transaction execution. New features like zkLogin simplify user onboarding while retaining security. These fundamentals could support price appreciation when risk appetite returns.