A look at what drives Sui (SUI)’s 3.81% drop
Sui (SUI) financial organization that has recently faced an unfavorable 3. a plunge of more that 81%, thus taking its value down to $0. 7628. Sui is currently ranked the 35th biggest cryptocurrency in terms of its market capitalization; this makes Sui current market capitalization to be around $2. 04 billion which was almost similar to that of the previous year 3. Twenty-four hour changes included an 81% reduction in patients complaining about pain. This drop has raised doubt to investors and observers in the market to understand the trend that has beset Sui recently and what this may portend.
One of the features of Sui’s market tendencies is the increase in its turnover for the past 24 hours by 90. 11% to approximately $177. 81 million. The VTM is 8 times suggesting that the volume of sales is many times the company’s total market capitalization. 70% signifies that the company is very active in trading compared to it’s market capital. This increased trading activity especially after the decrease of the prices implies increased activity in the market that may be caused by fluctuations or speculations. However, its higher trading volume leaves some questions to be answered, for such trading volume variance is a reason for unpredictable fluctuation of prices.
As of now, the circulating supply of Sui is 2,679,963,750 SUI, this is 26% of the total supply. used for the accounts receivables of their partners, representing 80% of its an total token supply of 10 billion SUI. Circulating supply and Total supply clearly show that a large number of SUI tokens are still locked in the protocol and has not reached the market. Were more tokens to be supplied to circulation to enhance some other aspect, this imbalance could translate to more supply volatility and would make price volatility worse. In addition to this, the SUI max supply is also pegged at 10B while the total supply is also 10B hence no more tokens will be created once the total supply is reached.
The market capitalization when taking into consideration the potential total supply of Sui tokens stands at $7 as of right now. 63 billion. The current market cap and the fully diluted market cap show how much more dilution is possible in future by the release of more tokens into the market. This could reduce the price if the demand in the market does not rise as the supply in the market is improved.
The following are some of the reasons that could make Sui’s value to decrease in the current market standards; Firstly, there are factors that are external to the cryptocurrencies’ markets and that have an impact on cryptocurrency prices. Cryptocurrencies have been oscillating in the global market as a result of the various factors that causes fluctuations including macro-economic factors, regulatory reforms, as well as outlook of investors. Sui being mid-cap and is comparatively new is highly volatile for such changes in the broader market.
Secondly, probably the internal factors within Sul ecosystem is also an influence to its prices. Being an emerging blockchain platform, any issues with its development, no demand, or negative news concerning the platform, can negatively affect the investors’ attitude. In addition, the majority of SUI tokens has not been distributed, and their future sale may destabilize the token price.
Furthermore, the considerable augmented trading volume may mean that the short-term trading speculation is driving ‘noise trading’. Although it may lead to short-term increases in prices, there are problems associated with volatility that may manifest themselves in lowering the price once the speculation orgy is over.
Altogether, one can state that Sui’s recent 3. It is safe to assume that 81%, such as other percentages listed by the author, include the overall conditions of the market reflecting on the Sui environment as well as the company’s misfortunes. This goes ahead and explain why there is a sharp increase in trading volume that indicates high market activity, but at the same time, signals volatileness. Potential investors should pay attention to the supply, demand, and other activities related to the Sui project in order to optimize its potential in the future of the SUI token. The current one is though significant but can also be an opportunity to those investors who are willing to hold the company and wait for its technology to bear fruit.