SUI Volume Surges Past AVAX, NEAR: Why Are Traders Selling?
SUI has demonstrated strong performance in trading volume, surpassing several major altcoins. However, a decline in price raises questions about investor sentiment.
Key Highlights
- Monthly trading volume: SUI's monthly trading volume hit $44.59 billion, exceeding the combined volumes of AVAX, HYPE, and NEAR.
- Catalyst: This surge aligned with the launch of BTCfi on DeepBook and significant growth in Total Value Locked (TVL).
Despite these achievements, SUI experienced a 4% decrease over the past 24 hours, mirroring a broader market correction. SUI had peaked at $4.40, but on-chain volume remained robust, according to CoinGecko data.
SUI's Dominance in Trading Volume
SUI's trading volume exceeded the combined values of Avalanche (AVAX), Hyperliquid (HYPE), and Near Protocol (NEAR). Specifically, SUI recorded $44.59 billion in volume for July, $8 billion more than its competitors. This includes both CEX and DEX swaps, signaling widespread adoption.
This increase can be attributed to protocols like Cetus and the introduction of BTCfi, which have expanded liquidity options within the network.
Drivers of the Volume Surge
One primary factor is SUI's DeFi protocols now accommodating Bitcoin (BTC), marking a significant milestone in scalability. BTCfi enables the use of Bitcoin on SUI’s DeepBook for liquidity provision, perpetuals and options trading, leveraging, lending, and borrowing.
As highlighted on X, this integration introduces substantial new liquidity to the Layer-1 blockchain.
SUI's Total Value Locked (TVL) has increased by over 480% since January, reaching $2.295 billion by late July. Including liquid staking, borrowings, and double-counted funds, the aggregate TVL reached an all-time high of $3.48 billion.
Stablecoin activity remains strong, with a market cap of $1.036 billion and daily inflows of $2.36 million, indicating consistent capital deployment.
Price Analysis
While SUI excels in volume, its price stability is being tested. SUI is trading at $3.82, and the price appears to have retested the $3.61 zone.
The Awesome Oscillator indicates moderate bullish momentum, but sellers dominate the volume profile. The Money Flow Index (MFI) has dropped to 36.47, suggesting capital is exiting despite positive structural growth.
Despite price declines, derivatives data presents a cautiously optimistic view. The OI-Weighted Funding Rate remains positive, indicating that long traders are still paying shorts. Open Interest (OI) decreased from $2.66 billion to $2.41 billion but remains above the $2 billion threshold.
This resilience suggests sustained institutional or whale interest, even amidst market corrections.
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