- SUI’s price remains under pressure as Canary Capital moves closer to launching a SUI exchange-traded fund, pending SEC approval.
- Despite recent network challenges, the Sui blockchain continues to grow its DeFi presence with new integrations and token launches.
The price of SUI, is facing downward pressure as anticipation builds around the potential launch of a new exchange-traded fund (ETF) by Canary Capital. The Nashville-based crypto asset manager, in collaboration with the Chicago Board Options Exchange (Cboe), recently filed paperwork with the U.S. Securities and Exchange Commission (SEC) to create a SUI-focused ETF.
Sui, a high-performance layer-1 blockchain developed by former Facebook engineers, launched in May 2023 as a direct competitor to Ethereum and Solana. Despite being relatively new, the digital asset has quickly gained traction in the decentralized finance (DeFi) space. However, the token was recently trading at $1.98, slightly down over the past 24 hours, according to CoinGecko. With a market cap of $6.4 billion, SUI currently ranks as the 22nd largest cryptocurrency.
While the ETF application marks a potentially bullish development for SUI, investor sentiment appears cautious. The proposed fund from Canary is still pending SEC approval, and the path to regulatory acceptance remains uncertain. The SEC is currently reviewing multiple applications for altcoin ETFs from asset managers like VanEck, Bitwise, and 21Shares, following the successful launch of Bitcoin and Ethereum ETFs in the previous year.
Canary Capital isn’t new to the ETF space, it has also submitted filings for ETFs offering exposure to Solana, XRP, and even Pudgy Penguins. The appeal of such funds lies in their ability to give investors indirect exposure to volatile crypto assets without the need for self-custody.
Meanwhile, the Sui ecosystem continues to evolve. DeepBook, a flagship DeFi platform on Sui, recently announced the upcoming launch of its DEEP token on October 14. The project utilizes a central limit order book, a traditional finance mechanism for matching trades, which may offer greater efficiency and liquidity in Sui’s DeFi applications.
Additionally, Bitcoin restaking platform SatLayer has integrated with Sui, further expanding the network’s capabilities by allowing developers to utilize Bitcoin’s massive liquidity footprint in DeFi applications. Support from widely used wallets like Phantom has also added to the ecosystem’s appeal.
Despite these advancements, the Sui network has not been without setbacks. The team was forced to deny insider trading allegations last year after blockchain data suggested a wallet tied to the Sui Foundation made $400 million amid a sudden price surge. Technical issues have also plagued the network, including a notable outage in November that halted activity for two hours due to a bug.
As Canary’s ETF application advances through the regulatory process, SUI’s short-term price movement may remain volatile. Still, with growing DeFi integrations and institutional interest on the rise, the Sui network could be positioning itself for long-term relevance in the evolving Web3 landscape.