TVL rises 2,000% in 90 days, SUI price rises 300% – what’s behind the move?
SUI, the native token of the Sui Layer 1 smart contract platform is making waves in the DeFi sector after posting a 300% move in three months.
Accusations of supply manipulation from South Korean regulators have sent SUI prices and trader attention falling by the wayside in October 2023, but recent technical and on-chain data suggest SUI's latest price move is based on improving fundamentals.
Protocol TVL jumped 2,000%
A rising tide lifts all ships and SUI has clearly benefited from the bullish momentum seen in the broader crypto market. The most important thing is to indicate any changes that reflect the health, growth and sustainability of the project ecosystem.
After growing roughly 2,200% in three months, SUI's trading volume surpassed $950 million on January 13, according to data from CoinMarketCap.
According to data from DeFi data aggregator Defillama, SUI's total value locked (TVL) has also been increasing over the past three months, rising more than 828% from $54.39 million in early October. 2023 at a cost of $319.23 million.
SUI Foundation Managing Director Greg Sioronis acknowledged the growth in TVL, saying, “$300 million in TVL is a huge milestone,” representing an increase of more than 2,000% since August 2023.
Cetus, the decentralized exchange (DEX) behind the protocols behind SUI's growing TVL, is locked in at $62 million; Navi Protocol with $60 million TVL up 485% in last 90 days; Scallop lent $54 million, DeepBook ($33 million) and FlowX Finance ($31 million).
A few months after the launch of the main network, Sui has managed to attract several new projects, and Solland, the main lending protocol on Solana, has announced plans to expand to Sui.
The relative liquidity ratio of SUI shows the interest of traders
SUI's triple-digit price rally continues to attract traders, and crypto market analyst CryptoLaxy notes that SUI's Relative Liquidity Ratio (RLR) reflects this growing demand. RLR is the ratio of the 24-hour trading volume to the market value, and the higher the ratio, the higher the demand of traders for Takayu and Token liquidity.
SUI has presented key steps in a short period of time
After finding support from the $0.36 price zone, the SUI price rallied nearly 300% to hit a high of $1.4486 on January 15.
All the major moving averages are still pointing upwards and the Relative Strength Index (RSI) is sitting at 68, which suggests that the market conditions are still in favor of bullish traders.
The swing highs at $1.40 and $1.44 are key levels to watch for upside. Other roadblocks may arise from the $1.60 and $1.70 psychological levels.
Currently, the RSI shows that the SUI is overbought and a sustained correction is likely to continue in the next few days as sellers take profits.
The first line of resistance can be broken out from the 23.6% retracement level at $1.92. Additional support areas can be found at $1.0, and the 61.8% retracement level at $0.80.
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.
