Sui Network (SUI Coin) Will Soon Unlock Its Token Worth Approximately $300 Million

This will inflate the circulating supply of Sui tokenomics and SUI. Also, the move is part of a monthly unlocking programme that dilutes investors

Crypto analytic platform Tokenomist tracks and reports on Sui (SUI Coin) cliff-unlock events. For instance, on December 1, Sui’s largest unlock event to date occurred. This was also driven by SUI’s continued price appreciation. In this event, Sui released 64.19 million tokens valued at $224 million. If SUI trades close to its current level, this phenomenon will be repeated on the first day of 2025. Notably, the usual 64.19 million SUI Coin unlock is now nominally valued at $274.11 million. This would artificially inflate Sui’s circulating supply and market capitalization by 2.19% after the token unlock.

To be precise, there are still 1.85 billion SUI locked in contracts that have been vested with a planned unlock. Over 5.22 billion SUI coins are yet to be scheduled for an unlock, categorised as ‘TBD locked’ by Tokenomist.

Around $600 million in token unlocks next week

Tokenomist’s ‘Cliff Unlocks’ data also shows that 43 altcoin projects will unlock $581.95 million worth of tokens in the next seven days. Other projects with significant unlocks include Optimism (OP) and ImmutableX (IMX) with $60.80 million and $36.04 million, respectively. However, SUI Coin accounts for roughly half of all cliff-unlocks for the upcoming week. In other words, it has the largest share in these events.

SUI Coin tokenomics and market impact explained by Barbosa

According to Barbosa’s analysis, Series A and B investors in Sui will receive the highest proceeds, each getting over 19 million SUI, which is 61% of the total. Mysten Labs will get the remaining 25.03 million. The project allocated 12.63 million for the community, early contributors got 10.34 million and 2.07 million were allocated to the treasury. Sui Network has so far unlocked 29% of the maximum 10 billion SUI Coin supply. At $4.27 per token, Sui has a fully diluted value (FDV) of $42.70 billion, which is close to the circulating market capitalization of Circle’s USDC.

As you have been following from Kriptokoin.com, every time the network unlocks more tokens, it increases the potential selling pressure and also artificially inflates the market value. According to the laws of economics, an increased supply needs a similar or better increase in demand to sustain its prices. Hence, Sui’s largest cliff-unlock event to date poses an immediate threat to SUI Coin investors, diluting the value of their holdings. Meanwhile, Sui allows Mysten Labs and Series A/B investors to stake their locked tokens, a unique tokenomics feature. These positions earn asymmetric liquid rewards compared to other staking investors.