Sui has skilled extended bearish strain after the SEC determined to lengthen its resolution on its spot ETF.
Sui (SUI) was down 4% on Thursday, compounding its earlier losses this week to 14%. Regardless of considerably recovering this week, the token remains to be below strain as weak sentiment plagues its whole ecosystem.
The newest blow for Sui got here in the type of an unfavorable resolution by the U.S. Securities and Trade Fee. On June 4, the SEC delayed its resolution on the Canary Capital’s spot SUI ETF, triggering renewed uncertainty.
This introduced Sui down close to its weekly lows, to the $3.06 stage, which it noticed in the course of the Might 30 flash crash. On the time. On the time, Sui was down 20% in 24 hours, as unprecedented promoting quantity negated its temporary rally above $4.
Cetus Protocol hack nonetheless weighs on Sui price
The $4 rally was negated as a result of lingering unfavorable sentiment from the Cetus Protocol hack. On Might 22, the core Sui-based protocol was exploited for an estimated $223 million. The hack had a vital impact on the Sui token, as a result of its central function in its ecosystem.
Cetus Protocol enabled token swaps and yield farming for than 62,000 lively customers. On the similar time, the protocol generated over $7.15 million in each day buying and selling charges. Nevertheless, the staff’s response to the hack had much more vital unfavorable results.
In response to the hack, Sui validators agreed to freeze hacker wallets. Nevertheless, whereas this response helped mitigate the consequences of the hack on customers, it additionally triggered vital considerations. Notably, merchants began questioning whether or not or not Sui is actually decentralized.
Compounding these lingering pressures is the remainder of the crypto market, which was below strain final week. Main tokens, like Solana, Dogecoin, Cardano, and Shiba Inu, additionally noticed double-digit losses over the previous seven days.
