SUI, the native token powering the Sui Layer 1 blockchain, is undergoing a notable correction after failing to hold momentum above the $4 mark in May’s short-lived rally.
After briefly surging past $4 earlier in May 2025, SUI has since retraced over 19.8% from its monthly high of $4.14, trading at $3.32 at press time. The token’s recent performance includes a 7% weekly decline, though it has registered a minor 1.3% rebound in the last 24 hours. SUI remains down approximately 37% from its all-time high of $5.30, reflecting ongoing market pressure.
Cetus Exploit Shadows Market Confidence
Part of the downturn has been linked to the fallout from the May 2025 Cetus exploit, which drained over $260 million from the ecosystem. The exploit dealt a blow to investor confidence, triggering capital flight and a significant reduction in on-chain activity.
Data from DefiLlama indicates that Sui’s total value locked (TVL) has plunged from $2.13 billion to $1.75 billion since the incident shedding nearly $400 million in value as developers and liquidity providers recalibrate their risk exposure.
Ecosystem Growth Offers a Silver Lining
Despite short-term weakness, SUI bulls remain hopeful. Institutional interest is building on the back of ETF optimism, with firms like 21Shares reportedly exploring spot SUI ETF listings. Although regulatory approval is still pending, such filings signal growing recognition of Sui as a scalable, high-throughput Layer 1 contender.
Developers are also continuing to build, and new DeFi protocols and NFT projects are emerging on Sui, which could serve as a long-term catalyst for renewed investor interest.
Market Context: SUI Lags Majors While Memecoins Surge
SUI’s underperformance echoes a broader cooldown across the crypto sector but contrasts sharply with the relative stability of major assets. Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have demonstrated firmer price action in the same period.
Interestingly, some memecoins have bucked the bearish trend, with POPCAT and WIF delivering 14% and 16% gains respectively highlighting the speculative rotation currently playing out across the market.
