The Sui (SUI) Ecosystem: Strong Fundamentals Amidst Price Correction

The Sui (SUI) ecosystem continues to show impressive fundamental strength despite a notable price correction of its native token. A detailed look at the data reveals a significant discrepancy between the network’s thriving on-chain activity and its recent price performance, which analysts see as a potential long-term opportunity.

Renowned market analyst Michaël van de Poppe highlighted Sui as one of the most promising non-EVM blockchain projects, noting its rapid growth and technical resilience.

Sui’s On-Chain Growth Accelerates as Key Metrics Soar

Sui has demonstrated remarkable expansion across multiple on-chain metrics. Stablecoin holdings on the network have tripled since January, increasing from $400 million to nearly $1.2 billion.

This surge in supply reflects growing user trust and liquidity entering the ecosystem. Moreover, the total value locked (TVL) now stands at $1.8 billion, making Sui the third-largest among non-EVM chains—an impressive achievement in a competitive landscape.

Wallet adoption is also increasing, with the Sui ecosystem integrating with Phantom, a popular multi-chain wallet. Additionally, the native SUI wallet has been rebranded to Slush, offering a more user-friendly identity and interface.

Lending activity is booming as well. SuiLend, the native lending platform, now secures over $600 million in TVL—a 90% increase in just one month.

> $SUI remains super interesting as an ecosystem.
>
> Fundamentally, they have been adding updates:
>
> – The amount of stablecoins on the chain has gone vertical, rising from $400M in January to nearly $1.2B.
> – Total value locked has reached $1.8B, making it the 3rd among non-EVM chains.
>

Market Correction Presents a Potential Opportunity

The recent market dip has pulled SUI’s price to $2.94, reflecting a 13.71% decline over the past week. However, this drop may present an opportunity. According to van de Poppe, Sui is mirroring a prior pattern where a breakout above $3.30 could trigger a significant rally. Liquidity above this level may fuel bullish momentum, should buyers find key support near $2.50.

Technical Analysis

The daily price chart for SUI/USD via TradingView shows technical indicators supporting a cautious but watchful stance. The MACD reveals bearish momentum, with a negative histogram reading of 0.0308. The RSI sits at 38.39, nearing oversold territory but not quite there yet. Historically, such levels have preceded rebounds.

Monitoring the Next Move

The SUI Spot Netflow chart indicates strong outflows since April, suggesting profit-taking or cautious sentiment. As of June 17, net outflows totaled over $770,000. While this adds short-term pressure, such trends often reverse if technical support holds and fundamentals remain strong.

Disclaimer: The information presented in this article is for informational and educational purposes only. This article does not constitute financial advice. Coin Edition is not responsible for any losses incurred. Readers are advised to exercise caution before taking any action related to the company.