SUI Surges on Privacy Research and Bullish On-Chain Metrics

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Tuesday, Jan 6, 2026 3:48 am ET2min read
Aime RobotAime Summary

-

surged 14% in 24 hours, outperforming and , driven by privacy research and institutional interest.

- Technical upgrades like Mysticeti v2 achieved 886 TPS and 390ms finality, boosting institutional adoption.

- Derivatives show positive funding rates and balanced long-short ratios, while DEX volume exceeded $800M daily.

- Annualized TVL reached $48.4B, highlighting SUI's utility beyond speculation, despite token unlocks.

- Future growth depends on privacy features and ETF applications, but faces risks from Bitcoin dominance and volatility.

SUI surged 14% in 24 hours, outperforming

and amid broader market gains.
- Derivatives data shows bullish sentiment with balanced long-short ratios and positive funding rates.
- Daily DEX volume exceeds $800M with $48.4B annualized TVL despite token unlocks.
- Mysticeti consensus upgrade achieved 886 TPS with 390ms finality in recent tests.

SUI's token has demonstrated remarkable strength during the recent crypto market rebound. The layer-1 blockchain's native asset

, significantly outpacing Bitcoin and Ethereum. This rally coincides with a Mysten Labs research paper exploring privacy-preserving blockchain designs without legacy privacy coin frameworks. Broader market tailwinds also contributed as Bitcoin reclaimed $90,000 and altcoins rallied. Investor attention remains fixed on SUI's technical infrastructure.

Why Is Outperforming Bitcoin and Ethereum?

SUI's recent price surge reflects growing institutional interest and technological differentiation. The token climbed sharply while Bitcoin gained just 2% over the same period.

Traders reacted to Mysten Labs' research outlining confidential transaction models using zero-knowledge proofs. This positions SUI within the emerging privacy narrative that saw privacy coins outperform in late 2025. Broader altcoin strength provided additional lift as capital rotated toward high-beta assets.

What Do Derivatives and On-Chain Metrics Reveal About SUI?

Derivatives markets signal strong accumulation patterns despite token unlock events. Open interest has declined while funding rates turned positive across major exchanges.

Long-short ratios remain balanced, suggesting measured institutional positioning. On-chain activity shows exceptional resilience with $800+ million daily DEX volume. Annualized TVL reached $48.4 billion, outperforming established layer-1 competitors. These metrics indicate robust utility beyond speculative trading.

Can Network Upgrades Drive Further SUI Growth?

Technical enhancements could strengthen SUI's institutional appeal throughout 2026. The Mysticeti v2 consensus deployed in November 2025 achieved 886 transactions per second with 390ms finality.

Planned privacy features would enable confidential balances using advanced cryptography. Custody solutions from Crypto.com, Sygnum and Fireblocks have accelerated institutional adoption. ETF applications by Bitwise and Canary Capital provide additional validation. These developments support long-term value if adoption continues.

SUI faces potential headwinds from Bitcoin dominance shifts and scheduled token unlocks.

Technical analysis identifies $1.31 as crucial support and $1.68 as the breakout level for extended gains. OBV and MACD indicators suggest accumulation is underway despite recent volatility. The token's performance will likely depend on continued network development and broader market conditions.