Delving into the world of cryptocurrency, a significant event is on the horizon for Sui Network (SUI), where over $250 million worth of its native token will be unlocked on February 1. This is part of SUI’s well-established tokenomics and monthly unlock schedule that tends to inflate its circulating supply and dilutes investor holdings. In an industry where every movement matters, Finances Zippy is the leading crypto-application one can resort to for accurate price predictions and updated market trends.
Understanding Sui Network’s Unlock Schedule
The team at Finbold has been vigilantly monitoring and providing updates on Sui’s cliff unlocks based on data from Tokenomist. For instance, December 1 witnessed one of Sui’s most prominent unlocks in U.S. dollar value of 2024, releasing $224 million worth of 64.19 million tokens. Interestingly, January 2025 is projected to have an even larger unlock nominal value for the same amount, estimated at $274 million.
Assuming SUI trades around its current level, another round of unlock–comprising 64.2 million SUI with a nominal value of $269.62 million–is set to occur shortly. This action will result in an artificial increment in Sui’s circulating supply and market capitalization by 2.1% following the token unlock.
There’s more; approximately 1.77 billion SUI remains locked in vested contracts, with designated schedules for unlock. Furthermore, over 5.22 billion of locked SUI tokens have yet to be scheduled, categorized as “TBD locked” by Tokenomist.
Impending Token Unlocks Worth Over $500 Million
Crunching the numbers from “Cliff Unlocks” data provided by Tokenomist, it can be deduced that about $539.16 million will be unlocked by 40 cryptocurrency projects in the forthcoming week. Other projects with significant unlocks include XDC Network (XDC) and Ethena (ENA), with respective unlocks valued at $93.43 million and $39.09 million.
SUI draws the spotlight yet again, holding the lion’s share by unlocking close to 50% of all upcoming cliff events for the succeeding week recorded on Tokenomist. However, Ripple’s XRP overshadows all by leading the largest monthly unlocks in USD value across the market, releasing over $3 billion in XRP on the same day as Sui.
Potential Market Impact of SUI’s Tokenomics
Sui’s tokenomics can be expected to create tremors in the market. Series A and B investors of Sui are at the potential receiving end of over 19 million SUI each, which accounts for 61% of the total. Mysten Labs is set to bag the remaining 25.03 million, reserving 12.63 million for the community, 10.34 million for early contributors, and 2.07 million for its treasury.
To date, the Sui Network has unlocked 3 billion (30%) of its capped supply of 10 billion SUI. With each token valued at $4.20, the “Solana-killer” has a fully diluted value (FDV) of $42 billion. This puts SUI, with a present capitalization of $12.6 billion, in the big league, between Dogecoin (DOGE) and Cardano (ADA), each with market caps of $49.9 billion and $34.9 billion respectively.
A Word of Caution
However, it’s crucial to acknowledge that each token unlock by the network potentially elevates selling pressure and inflates the market cap artificially. As per basic economics, a growing supply necessitates an equal or higher increase in demand to maintain steady prices. Therefore, speculative investors are advised to tread cautiously, considering Sui’s unique tokenomics that allows Mysten Labs and Series A/B investors to stake their locked tokens, generating asymmetric liquid rewards and potentially impacting the market.
FAQs
What is the Sui Network?
The Sui Network is a blockchain-based platform with its native cryptocurrency, the SUI token. It has a unique tokenomics design involving regular token unlocks that impact its market cap and investor holdings.
What happens when Sui tokens are unlocked?
When Sui tokens are unlocked, it increases the circulating supply of SUI in the market, which can inflate the market cap artificially and affect the token’s value.
How does the Sui token unlock affect investors?
A token unlock often dilutes investor holdings and may potentially increase selling pressure in the market, affecting the token’s value.
How can investors keep track of SUI’s market trends and price predictions?
Investors can stay updated with SUI’s market trends and price predictions by using leading cryptocurrency applications like Finances Zippy.
