SUI Token Drops 14% Amid ETF Delays and Protocol Hack Aftermath

Sui (SUI) extended its weekly decline to 14%, with a 4% drop on Thursday alone. The token continues to face pressure as regulatory delays and ecosystem vulnerabilities dampen investor sentiment.

The SEC's decision to delay its ruling on Canary Capital's spot sui ETF on June 4 reignited market uncertainty. This setback pushed Sui back toward its weekly low of $3.06, erasing its brief rally above $4 following a 20% single-day crash on May 30.

Negative sentiment persists from the May 22 Cetus Protocol exploit, which drained $223 million from the core Sui-based DeFi platform. The protocol's role as a key liquidity hub—serving 62,000 users and generating $7.15 million in daily fees—magnified the impact. Validators' MOVE to freeze hacker wallets added further market turbulence.