Behind the big pump of the Sui ecosystem: Multiple factors driving high market sentiment

Recently, the Sui ecosystem has experienced a significant rise, with its governance token SUI increasing by over 75% within a week, far exceeding the performance of the broader market during the same period. This phenomenon is driven by multiple intertwined factors, including speculative enthusiasm triggered by market rumors, notable changes in capital flows, and continuous improvements in the ecosystem's fundamentals.

Inflow of funds to the exchange, surge in contract positions

Although the on-chain capital flow of Sui is not obvious, the capital inflow at the exchange level is quite considerable. Data shows that in the past seven days, the spot capital inflow of SUI reached 62.86 million USD, ranking fourth among all cryptocurrencies. At the same time, the contract capital inflow of several Sui ecosystem tokens has also made it to the top, reflecting the capital activity within the ecosystem.

The contract holding amount of the SUI token has been rising sharply since April 21, increasing from 700 million USD to 1.419 billion USD in just one week, approaching a historical high. Meanwhile, most tokens in the Sui ecosystem have also experienced significant increases, with nearly 20% of tokens rising over 100% and 37.5% of tokens rising over 50%, showing a comprehensive bloom.

Multiple positive news boosts market sentiment

Starting from April 21, along with the market rebound, Sui also began to rise, and then several positive news came out:

1. Pokémon Collaboration Rumors: The Pokémon HOME app has updated its privacy policy, listing Sui-related companies as authorized developers, sparking market speculation.

2. Cooperation with financial platforms: Announce a partnership with a financial platform, planning to launch the Sui brand virtual Mastercard in Europe.

3. ETF-related news: The news that a certain asset management company has established a "SUI ETF" statutory trust entity has been widely circulated.

4. Other progress: such as collaboration with the Athens Stock Exchange, launching off-chain privacy solutions, etc.

These positive news have gathered into a whole, providing support for the rise of Sui.

DEX trading volume soars, but faces dual pressure

Since April, the DEX trading volume of the Sui network has remained high, even reaching a historical peak of $998 million on March 29. The leading DEX project in the ecosystem saw a trading volume increase of 84.5% in the past week, and its token price is close to doubling.

This growth is mainly attributed to the airdrop activity of a certain decentralized storage project, which led to a surge in the trading volume of the entire ecosystem. In addition, the increase in developer activity is also one of the important factors for the growth of the Sui network.

However, the Sui ecosystem still faces two major challenges:

1. The selling pressure brought by the continuous unlocking of tokens.

2. The ecosystem lacks "hit" applications that truly attract a large number of users.

Conclusion

The recent rise of the Sui ecosystem is the result of market speculation, influx of funds, and expectations in the derivatives market. However, to convert the current enthusiasm into long-term value, the key lies in whether it can cope with the pressure of token unlocks and incubate high-quality applications that truly attract users within the ecosystem.