Sui Price News: SUI Volumes Nearly Double But On-Chain Data Flashes Warning Signs

Sui (SUI) has gone up by nearly 8% in the past 24 hours and trading volumes experienced a strong boost as the token approaches the $4 level.

Nearly $2 billion worth of SUI has exchanged hands during this period, meaning an 80% increase in just a day. This figure also accounts for 14% of the token’s circulating market cap, reflecting how strong buying interest has been.

This uptick comes just hours after the U.S. Federal Reserve cut interest rates for the first time this year. This time, the Fed slashed 25 basis points off the Federal Funds Rate while analysts expect a similar cut to be implemented at the October FOMC meeting.

This move favors a bullish outlook for cryptos as a whole as investors will chase yields on riskier corners of the market like altcoins. BNB Coin (BNB) has been spearheading altcoin season as the token just hit a new all-time high at $1,000.

Can SUI play catch-up with both BNB and Ethereum (ETH) and rise above $5? On-chain data shows some worrying trends that may slow down SUI’s climb.

Stablecoin Reserves on Sui – Source: DeFi Llama

Stablecoin reserves within the Sui ecosystem have been dropping sharply since mid-July when they peaked at $1.25 billion. Since then, this metric has experienced a 47% drop as it currently stands at $665 million.

That said, on a year-to-date (YTD) basis, the amount has still booked an 82% jump as it started the year at $366 million.

This drop coincides with the release of the Pectra upgrade on Ethereum. This technical improvement to the latter network’s scalability and efficiency may have drawn investors back to its more robust DeFi ecosystem.

Meanwhile, the Solana network is ready to deploy a new upgrade called Alpenglow as well, which will increase its transaction processing speeds to Internet-like levels.

SUI’s Daily Active Accounts Spike to 90-Day Record

Sui would need to do some serious catch-up if it wants to stay competitive. Even though its blockchain can process a higher number of transactions per second, it needs to attract more developers and top decentralized apps to grow its ecosystem.

Total Value Locked on Sui (In SUI) – Source: DeFi Llama

The network’s total value locked in SUI has expanded this year as well from 394 million to 568 million – a 44% jump in just 9 months. By expressing the metric in SUI, we can eliminate the impact of higher SUI prices from the equation.

Finally, data from Sui Vision shows that daily active accounts have reached a 90-day record of 945,000.

This indicates that interest in the token is increasing. Hence, we could anticipate a spike in SUI in the near term as market conditions remain highly favorable and this is still one of the most appealing layer-1 blockchain projects in the space due to its technical robustness.

Price Action Favors Imminent Breakout of $4 Ceiling

SUI has been undergoing significant price compression but the price action shows that the token has been on an uptrend for months.

SUI/USD Daily Chart (Binance) – Source: TradingView

The $4 threshold is the key resistance to watch and a bullish breakout could anticipate huge gains in the near term for the token.

A one-way trip to a new all-time high seems highly likely during this cycle as altcoin season has just kicked off. Ecosystem growth has been robust despite the latest downtrend in stablecoin reserves.

Sui still needs to keep growing its developer base organically and it has thus far. As long as they keep up with the good work, this project’s market value should continue to rise steadily.