Sui Crypto Price Takes a Hit as Traders Cash In on Recent Gains
The Sui crypto price has taken a significant blow, dropping nearly 5% as traders cashed in on recent gains. This decline outpaced both the broader crypto market’s 1.57% dip and modest sub-3% losses from Ethereum (ETH) and Solana (SOL). The move reveals fading risk appetite in a jittery market, with Bitcoin dominance climbing and altcoin volume shrinking.
Sui’s Recent Performance
On August 5, Sui lost 4.71%, falling from a daily high of $3.61 to exchange hands at $3.39 at the time of writing, according to bitpulse data. This decline highlights altcoin vulnerability when Bitcoin strengthens.
Mounting Pressure
The move capped a week of mounting pressure that began with a $162 million token unlock on August 1, Sui’s largest to date. With over tens of millions of new tokens entering circulation, selling pressure built steadily, compounding losses already sparked by macro headwinds and altcoin fatigue.
Recent Losses
SUI has now shed over 20% since peaking near $4.40 earlier this month, erasing roughly $3 billion in market capitalization. Notably, open interest in SUI futures fell 15% in late July, signaling that traders were already unwinding risk before the unlock hit. That left SUI exposed, particularly as broader sentiment shifted toward capital preservation.
A Flight to Safety?
This isn’t just about Sui. Bitcoin’s dominance hit 61.4% for the first time since last week as geopolitical tensions and stronger-than-expected U.S. economic data pushed investors toward perceived stability. SUI’s 24-hour trading volume fell 6.8% to $1.15 billion, while Bitcoin’s surged 8.2%, painting a clear picture: risk appetite is cooling.
Broader Capital Rotation
The divergence underscores a broader capital rotation underway, one that favors liquidity, predictability, and perceived safety over mid-cap tokens navigating volatile supply dynamics. The reaction wasn’t isolated, as altcoins across the board have lagged as Bitcoin asserts itself once again as crypto’s liquidity anchor.
On-Chain Signals
In SUI’s case, the selloff cut through bullish on-chain signals. According to DefiLlama data, Sui’s total value locked remains near $2 billion, and network activity has stayed robust. Even institutional signals have been strong: AMINA Bank became the first regulated entity to offer custody and trading for SUI on August 5, while Mill City Ventures announced a $450 million SUI-backed treasury.
Fundamentals vs. Price Action
Yet price action suggests that fundamentals alone are no longer enough to buoy short-term valuations in a market increasingly shaped by macro narratives, supply shocks, and defensive positioning. As the crypto market continues to evolve, it remains to be seen how Sui and other altcoins will fare in the face of shifting investor sentiment.