Sui Network Completes Largest Token Unlock Valued at $215 Million

• Unlocking 64,19 million SUI tokens
• Estimated value of US$215,69 million
• Potential impact on SUI supply and demand

Sui Network (SUI) is set to perform its largest token unlock to date. time this Sunday, December 1, 2024. Over 64,19 million SUI tokens will be released, representing approximately 2,97% of the total supply, valued at approximately $128,4 million.

This event is part of Sui’s monthly schedule, which releases tokens from contracts purchased in five predefined tiers. Series A and B investors will receive the largest share, totaling over 19 million SUI each, accounting for 61% of the total unlocked. Mysten Labs, the company behind Sui Network, will receive the remaining 25,03 million, distributed as follows: 12,63 million to the community, 10,34 million to early contributors, and 2,07 million to the treasury.

With SUI currently priced at around $3,36 per token, Sunday’s unlock is valued at approximately $215,69 million. This is nearly double the unlock value of $1 million on November 126,68, when the token was priced at $1,97 at the time.

To date, Sui Network has unlocked 28% of its maximum supply of 10 billion SUI tokens. At the current price, the network has a fully diluted value (FDV) of $33,60 billion, comparable to the circulating market cap of Cardano (ADA). There are currently 2,87 billion SUI in circulation, resulting in a market cap of $9,64 billion, ranking Sui 18th among cryptocurrencies.

Each token unlock increases the circulating supply, which can create selling pressure and dilution for investors. In order to maintain stable prices, demand needs to grow in proportion to the increase in supply. This significant unlocking poses a challenge for SUI investors as it can dilute the value of their holdings.

Sui Network has unique tokenomics, allowing Mysten Labs and Series A and B investors to stake their locked tokens. These positions generate asymmetric net rewards relative to other staking investors, allowing these entities to sell these rewards or increase their staking positions over time.

According to Staking Rewards, there are 7,83 billion SUI currently staked, giving a total staking market cap of $26,38 billion. Due to this, SUI’s tokenomics has raised concerns among experts, who place greater importance on SUI’s FDV rather than its market cap.