10.3 C
Manchester
April 21, 2024
BTC Hunts
Image default
Altcoin

SUI Supply on the Brink: Why 66% of SUI Supply is Expected to Disappear

The post SUI Supply on the Brink: Why 66% of SUI Supply is Expected to Disappear appeared first on Coinpedia Fintech News

The Sui Network, a smart contract layer 1 blockchain, has launched its mainnet and its native token has been listed on top centralized exchanges such as Binance, OKX, and KuCoin. With a fully diluted valuation of nearly $14 billion, Sui has outperformed competitors like Solana. As the New York market opened on Thursday, Sui was trading around $1.39, down more than 35 percent in the past 24 hours.

Related: Sui Token: A Game Changer Or Just Vaporware? Analyst Issues Warning – Coinpedia Fintech News

Sui Coin Poised for Volatility in the Coming Days

With a trading volume of about $1.6 billion, the SUI coin is poised for more volatility in the coming days fueled by market makers, who have taken the lion’s share. For every crypto investor, understanding a project’s tokenomics is crucial to assess the risk-to-reward ratio. As for the Sui network, it has significantly invested in market makers to provide seamless liquidity. Reportedly, more than 54 percent of the Sui token’s circulating supply was issued to crypto market makers.

High Percentage of Market Makers Puts Sui Tokens at Risk

The high percentage of Sui tokens with market makers puts them at risk of increased sell pressure. Moreover, putting 400 million SUI tokens in the hands of market makers who are likely to dump them in the name of a hedge is a huge risk for retail investors.

Binance LaunchPool and Sui Foundation

Notably, Binance LaunchPool and Sui Foundation both received a total of 2.6 percent and 5.5 percent of the SUI total supply, respectively. Previously, Binance offered an opportunity on its LaunchPool product for people to earn SUI by staking BNB or TUSD. This led to a misunderstanding between Justin Sun and CZ, after the former deposited huge amounts to farm SUI.

Related posts

Litecoin Aims For $70 Following Bullish Breakout! Will LTC Price Gain Momentum?

Leslie Kim

Top Analyst Claims Bullish Action For Dogecoin, Updates Target For Another Altcoin

Leslie Kim

Top 3 Coins That Crypto Whales Are Buying: Will You Jump In Too?

Leslie Kim