SUI leads the crypto market with a 27% weekly gain – what’s behind the push?

The price of Sui (SUI) rose 13% in one day, to trade at $1.02 on September 12. This is part of the extended correction that began on September 3 and has seen the Sui rise more than 27% over the past seven days.

According to data from Cointelegraph Markets Pro and TradingView, SUI rose from a low of $0.9274 on September 12, climbing as much as 15% to an intraday high of $1.07.

Compared to the SUI, the total crypto market capitalization rose 1.15%, to $2.02 trillion. As such, SUI's performance over the past 24 hours has resulted in the highest gain among the top 100 cryptocurrencies by market value.

In a September 12 post on X, crypto markets analyst Crypto Banter said: “SUI's recent price increase, which shows that it outperforms the broader market.

“This is largely due to the launch of the Grayscale Sui Trust. This new investment vehicle has attracted attention and possibly increased demand for the $SUI token!”

On September 12, Greyscale officially announced the creation and public launch of the Greyscale SUI Trust, which allows investors to gain exposure to SUI. The trust is now open to all eligible accredited investors.

Grayscale SUI Trust, a US-based digital currency asset management firm, has revealed that it, like Grayscale, operates as another single-asset investment trust and invests exclusively in the SUI layer-1 blockchain token.

“Shares are designed to track SUI's market value, minimum fees and expenses.”

Sui is among the top 30 layer-1 blockchains with $711 million in total value locked (TVL) on the network, according to data from Defilama. The chart below shows that SUI's TVL has more than doubled in the past month, rising 107.5% between August 5 and September 12.

The protocols behind SUI's growing TVL are Cetus, a decentralized exchange (DEX) with $121 million TVL up 22% in the last 30 days. Navy Protocol with $261 million TVL; Scallop lent $117.75 million, DeepBook ($29.31 million) and FlowX Finance ($15.78 million).

Increasing TVL results in higher user interaction and increased trust in the network. In some cases, this will increase demand for the native token and drive its value higher.

Related: Grayscale US to launch XRP trust, paves way for potential ETF

Traders set high targets for SUI prices.

“SUI is showing strength as it nears critical resistance levels,” said anonymous crypto analyst Cryptorphic in X's latest SUI analysis.

Cryptographic was referring to the $1.025 level, which it recently touched twice. According to their analysis, a break above this level “opens up significant upside potential with the upside target set at $2.58 at the upper bullish channel boundary.”

“A confirmed separation could push SUI into a price discovery phase, opening the door to higher profits.” SUI/USD Daily Chart. Source: Cryptographic

Meanwhile, fellow analyst Bmoon has set a more ambitious target for SUI's price, suggesting it could reach $3.60 by the final quarter of 2024.

The $SUI target for this Q4 is $3.60. I've been ringing bull bells on @SuiNetwork for a few weeks now and I'm still amazed at how good the prices are. #DeFi is getting stronger on Sui too.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.