SUI Token Faces 20% Plunge Following Major Unlock Event as Market Capitalization Drops $3 Billion

SUI's price experienced a significant downturn this week, losing over 20% of its value since Monday. The LAYER 1 token dropped sharply from $4.40 to $3.36, wiping out $3 billion in market capitalization during its steepest decline since June's bullish rally.

The sell-off occurred alongside the August 1 token unlock, which introduced 56.91 million new sui tokens into circulation—the largest supply increase among major cryptocurrencies this month. Market analysts observed a bearish divergence pattern, with on-chain data showing continuous capital outflows since mid-July.

Despite testing a key descending resistance trendline, some experts suggest potential rebound opportunities. SUI's underperformance compared to broader market corrections indicates that unlock-related selling pressure exacerbated existing macroeconomic challenges.