Sui Prepares for 1.63% Token Unlock, Driving Market Volatility

Sui, a Layer-1 blockchain designed for low-latency and scalable decentralized applications (dApps), is preparing for a significant token unlock event. The Sui Foundation is set to unlock 5.22 billion tokens, which represents 1.63% of the total supply. This recurring monthly event, scheduled to continue through 2030, has become a significant driver of volatility for the Sui network. The unlock event is part of Sui's strategy to gradually release tokens into the market, aiming to balance supply and demand while fostering ecosystem growth.

Sui was created by Mysten Labs, a company founded in 2021 by former Meta (Facebook) engineers who had previously worked on the Diem blockchain and its smart contract language, Move. The blockchain is designed to support a wide range of dApps, from decentralized finance (DeFi) platforms to gaming applications. The upcoming token unlock is expected to have a notable impact on the Sui ecosystem, as it will increase the circulating supply of tokens and potentially influence market dynamics.

As the broader crypto market stabilizes post-ceasefire and summer volatility, Sui is pulling investor focus with its aggressive Layer 1 growth. The network has seen impressive surges in early June 2025, driven by a golden cross on the daily chart and a sudden wave of bullish sentiment. This breakout marked one of the strongest rallies among Layer 1 tokens in Q2. However, the rally was short-lived as resistance near $4.20 proved too strong, leading to a 5% pullback. The market is now locked in a technical tug-of-war, with bulls hoping for a rebound above $4 and bears watching closely for support at the $3.30 level.

Despite near-term volatility, Sui’s network fundamentals remain robust. With over $40 billion in aggregator volume, strong TVL in DeFi, and growing daily users, especially on apps like FanTV and RECRD, long-term sentiment remains bullish. Sui’s roadmap includes Mysticeti v2 and Move VM upgrades, helping position it as a fast, scalable Layer 1 blockchain for DeFi and gaming. Based on current projections, analysts place the Sui price prediction 2026 between $5.00 and $7.00, assuming positive market sentiment and continued ecosystem growth. Bearish models, however, suggest Sui could trade closer to $3.50–$4.00 if token unlocks and sell pressure continue to weigh heavily.

As Sui navigates through its token unlock events and market volatility, it continues to build a strong foundation for its ecosystem. The network's focus on low-latency and scalable dApps, combined with its robust fundamentals, positions it as a promising player in the Layer 1 space. Investors and developers alike are keeping a close eye on Sui's developments, anticipating its potential to reshape the crypto landscape in the coming years.