The Sui Network, known for its fast-paced growth and community support, is about to experience a significant event. On September 3rd, a massive amount of SUI tokens, worth approximately $18.7 million, will be unlocked. This unlocking event has the potential to impact the altcoin’s market dynamics in the coming days.
The details of this unlocking event have been transparently shared with the public. According to Token Unlocks, a crypto monitoring platform, this release will include 35.6 million SUI tokens, which represents about 5% of the current circulating supply. Interestingly, a majority of these tokens could be allocated for the network’s early supporters.
With this event, it is possible that some of the unlocked tokens may be used to reward SUI’s Active Contributors and Early Supporters (ACES) program. The ACES program, established by the SUI developer, Mysten Labs, earlier this year, aims to acknowledge and reward those SUI Discord members whose contributions were crucial before the altcoin’s mainnet launch. Additionally, Token Unlocks data suggests that SUI also plans to set aside a portion of the unlocked tokens for staking incentives.
However, the temptation to sell might arise for some early supporters, especially if a portion of the unlocked tokens is rewarded to Active Contributors and Early Supporters. This could potentially lead to a sell-off and result in short-term price depressions, considering the increased market supply that comes with massive token unlocks.
Despite the potential impact on the market, the Sui Network has witnessed rapid expansion. Within a short period, the network’s user base has grown from 3 million to 5 million users, and then further to 6 million active accounts. Additionally, the network has been experiencing an increase of approximately 1 million active accounts weekly in recent weeks. These growth rates could potentially cushion any potential bearish impacts caused by the token unlock.
While SUI currently ranks 89th among larger cryptocurrencies in terms of market cap, it has experienced a notable plunge of nearly 10% in the past 7 days. Even in the past 24 hours, the asset has recorded a 1.3% decline, with a current market price of $0.49. It is important to note that the cryptocurrency market as a whole has been facing some decline, with various assets experiencing price decreases.
In conclusion, the upcoming token unlock event for the Sui Network has the potential to impact its market dynamics. The allocation of tokens for early supporters and staking incentives, along with the possibility of a sell-off, could influence the short-term price. However, the network’s rapid expansion and growing user base may help cushion any potential bearish impacts. As always, it is advisable for investors and traders to stay updated on the market movements and conduct thorough research before making any decisions.