Sui's TVL Surges 100% to $1.8 Billion, Stablecoin Supply Triples in 2024

Sui’s ecosystem has demonstrated remarkable growth, with its total value locked (TVL) surging to $1.8 billion, placing it third among non-EVM chains in terms of DeFi activity. This surge in TVL indicates a significant increase in user trust and liquidity within the Sui network. Additionally, the stablecoin supply on Sui has tripled in 2024, further signaling rising user confidence and liquidity.

The native token of the Sui ecosystem, SUI, has recently experienced a price correction, with its price nearing the $2.50 support level. The Relative Strength Index (RSI) has dipped, setting the stage for a potential breakout move. This price action, however, contrasts with the robust on-chain activity, presenting a potential long-term opportunity for investors.

Renowned market analyst Michaël van de Poppe has highlighted Sui as one of the most promising non-EVM blockchain projects, citing its rapid growth and technical resilience. The analyst's forecast suggests that a breakout above $3.30 could trigger a major rally, with liquidity above this level acting as fuel for bullish momentum.

Sui’s on-chain growth has been impressive, with stablecoin holdings on the network tripling since January, surging from $400 million to nearly $1.2 billion. This increase reflects growing user trust and liquidity flowing into the ecosystem. Additionally, wallet adoption is gaining momentum, with notable integration with Phantom, a popular multi-chain wallet, and the rebranding of the native SUI wallet to Slush, bringing a more user-friendly identity and interface to the platform.

Lending activity on Sui is also booming, with SuiLend, the protocol’s native lending platform, securing over $600 million in TVL. This marks a 90% increase in just one month, further highlighting the ecosystem's growth and potential.

Despite the recent market dip, which has pulled SUI’s price to $2.94, down 13.71% over the past week, the decline may present an opportunity. According to van de Poppe, Sui is mirroring a previous pattern where a breakout above $3.30 could trigger a major rally. Technical indicators support a cautious but watchful stance, with the MACD showing bearish momentum and the RSI approaching oversold territory but not quite there yet.

The SUI Spot Netflow chart indicates strong outflows since April, pointing to potential profit-taking or cautious sentiment. On June 17, net outflows totaled over $770,000. While this adds short-term pressure, such trends often reverse if technical support holds and fundamentals stay strong. The next move for SUI will be closely watched by investors and analysts alike, as the ecosystem continues to show impressive fundamental strength despite recent price corrections.