SUI Token Unlock May Trigger Market Volatility Amid 61% Price Rally
2min read The sui network is on the cusp of a significant event as nearly 74 million tokens, valued at approximately $265 million, are set to unlock on May 1. This batch represents around 2.28% of SUI’s current circulating supply, with only about 33% of the total supply having been released so far. The unlocking of such a large number of tokens could introduce fresh volatility into the market, as it will increase the circulating supply and potentially affect market dynamics and investor sentiment.
Over the past month, the SUI network has experienced impressive growth in decentralized finance (DeFi) activity, stablecoin issuance, and total value locked (TVL). This growth has positioned the platform as one of the fastest-expanding layer-1 networks of 2025. The recent price hike of SUI, which has rallied over 61% after breaking resistance levels, reflects growing investor interest. This momentum has been further fueled by rising developer activity on the network and strategic partnerships aimed at strengthening the network’s utility. However, as the token unlock approaches, market participants are weighing whether SUI’s fundamentals can support its recent gains or if the influx of new tokens could trigger a temporary pullback.
The SUI network has shown signs of strength, with the Total Value Locked (TVL) across SUI-based protocols surging by around 40%. This growth indicates increased confidence and interest in the SUI blockchain and its DeFi ecosystem. The TVL has reached $1.735 billion, with the daily decentralized exchange (DEX) volume consistently hovering around $500 million and total trading activity for the past 7 days surpassing $3.6 billion. This has fueled volume beyond $11 billion, clearly indicating investors’ confidence that the market may absorb the upcoming supply without major disruptions.
As of April 28, 2025, the SUI price is at $3.6799, marking a 3.42% increase in the past 24 hours. The SUI token recently broke through an important resistance level of $3.30 and continues to show bullish momentum. However, the relative strength index (RSI) reading of 78 suggests SUI appears overbought, raising the possibility of a short-term pullback. The moving average convergence divergence (MACD) remains supportive of buyers, with all major moving averages aligned with a buy signal. If demand for the SUI token continues, it could climb toward the psychological resistance at $4.00, a level that may attract even more trading volume, creating positive sentiment for the SUI network and its token.
While SUI token optimism remains, the upcoming token unlock introduces the risk that traders are carefully watching. If selling pressure mounts, the SUI price could retest support at $3.30; a deeper correction might find stronger footing around the $3.00 mark. This will align with the 10-day exponential moving average (EMA). Should the market successfully absorb the new supply, the SUI token could consolidate between $3.30 and $3.60 in the near term before determining its next major move. Overall, SUI price action in the near future will be a critical test of its underlying market strength. The SUI uptrend will depend on the strong on-chain fundamentals and its ability to sustain trading volume to create a sense of optimism, along with investor reaction to the upcoming $265 million unlock.
Ask Aime: What's the impact of 74 million SUI tokens unlocking on May 1?
