Crypto

Sui Network Set to Unlock Millions of SUI This Week – Should You Be Concerned?

Sui Network Set to Unlock Over $250 Million Worth of Native Tokens

As part of its strategic tokenomics plan, the Sui Network (SUI) is gearing up to release more than $250 million worth of its native cryptocurrency on February 1. This event is aligned with Sui’s monthly unlock schedule, which aims to gradually increase the circulating supply of SUI, potentially diluting current investors’ holdings.

Tracking Sui’s Token Unlocks: A Historical Perspective

According to insights from Tokenomist, Finbold has been meticulously following and documenting the Sui cliff unlock events. Notably, on December 1, the network experienced its most significant token unlock in terms of U.S. dollar value for 2024, with $224 million worth of 64.19 million tokens entering circulation. This trend continued into January 2025, with an even higher nominal unlock value of $274 million for the same number of tokens.

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The Sui Network is poised to repeat this pattern tomorrow, provided the SUI token maintains its current trading levels. The upcoming release of 64.2 million SUI tokens, valued at approximately $269.62 million, is expected to increase the circulating supply and market capitalization by 2.1%.

Future Unlocks and Token Supply Dynamics

Currently, there are still 1.77 billion SUI tokens locked in vested contracts awaiting future release. Additionally, over 5.22 billion SUI tokens remain unscheduled, classified as “TBD locked” by Tokenomist. This strategic withholding of tokens indicates a calculated approach to managing supply and market impact.

Over $500 Million in Token Unlocks Expected Next Week

Data from Tokenomist reveals that a total of $539.16 million will be unlocked by 40 different cryptocurrency projects within the next week. Among these, SUI stands out, accounting for nearly half of the upcoming unlock events. However, Ripple’s XRP takes the lead in terms of the largest monthly unlocks in USD value, releasing over $3 billion in XRP on the same day as SUI.

Understanding SUI Tokenomics and Market Implications

The distribution plan for Sui’s token unlocks allocates significant portions to Series A and B investors, who will receive over 19 million SUI each, representing 61% of the total release. Mysten Labs will receive 25.03 million SUI, with allocations for community engagement, early contributors, and treasury purposes.

To date, the Sui Network has unlocked 3 billion tokens, equivalent to 30% of its capped supply of 10 billion SUI. With a token price of $4.20, SUI’s fully diluted value (FDV) stands at $42 billion. This positions SUI between Dogecoin (DOGE) and Cardano (ADA) in the market cap rankings, with DOGE and ADA valued at $49.9 billion and $34.9 billion, respectively.

Market Dynamics and Economic Considerations

Each token unlock event introduces new supply, potentially exerting downward pressure on the token’s price. To maintain price stability, an increase in market demand is essential. On a promising note, Adeniyi Abiodun has hinted at the arrival of a major consumer platform to the Sui Network, anticipated to drive significant demand.

However, Sui’s unique tokenomics allow Mysten Labs and Series A/B investors to stake their locked tokens, earning asymmetric liquid rewards. This strategy enables these entities to either sell their rewards or reinvest them to compound their staking positions over time, presenting both opportunities and challenges for the broader investor community.

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Emma Horvath
After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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