SUI Roars Back: $1.6B TVL Sparks Layer 1 Supremacy Debate

Move over, Ethereum—SUI’s resurgence has traders whispering ’flippening’ again. The blockchain’s total value locked just clawed back to $1.6B, signaling a potential comeback tour.

Anatomy of a rebound: While other chains bled TVL last quarter, SUI’s modular architecture and parallel processing kept validators busy. Now institutional money’s sniffing around like it’s 2021 all over again.

The real test? Converting this liquidity surge into developer momentum. Because as any degens knows—TVL inflates faster than a VC’s valuation during funding rounds.

• SUI’s TVL rose by $300M post-exploit to $1.76 billion, showing regained user trust and strong recovery in network activity.
• Analysts now expect continued outperformance over Solana as SUI gains traction in the Layer 1 space.
• Institutional backing grows with $317.2M in ETP assets, reflecting solid long-term confidence in SUI.

SUI recently overcame major FUD caused by the Cetus exploit and has been recovering well since then. The total amount locked into the network (TVL) has gone up by $300 million, taking it back to $1.76 billion. The fast improvement demonstrates that individuals and investors are once more trusting of the platform. It also points out that the SUI ecosystem is becoming stronger in a crowded LAYER 1 market.

Source: DefiLlama

Michael van de Poppe sees the recent price pattern as simply a FORM of consolidation, not as a signal of the market heading down. He considers SUI a leading candidate for adoption in the blockchain industry. The fast response in TVL and the strong prices show that the turmoil from the hack has mostly been forgotten by traders.

Analyst pointed out that SUI has gone above solana in the current Layer 1 race. He anticipates that this trend of outperforming will stay in place for 12 to 24 months. Because of its strong infrastructure and rising activity, coin is likely to continue growing and being adopted in the future.

Source: X

Adoption, ETPs, and Acceleration

These actions have been greatly supported by various institutions. The company 21Shares brought a sui exchange-traded product (ETP) to the European market. The product appears on Euronext Paris and Euronext Amsterdam, allowing more investors to trade token exposure in regulated markets.

The introduction of the ETP in July last year has helped increase interest and use of the token. Cryptocurrency’s price during that period ROSE above 350%. Being noted by both small and large investors has added to confidence in the token.

Source: TradingView

SUI’s Recovery Gains Momentum

As of May 26, CoinShares revealed that ETPs based on coin have attracted $317.2 million in assets. The growing trust from investors can be seen in this signal. Following the exploit, interest in ethereum has held across many institutions.

The rapid recovery of token highlights the solid basic structure of the project. The project is still being supported by liquidity, which is different from most Layer 1 networks that are struggling during this market period. A large community and group of backers play a big role in the project’s future.

SUI is still a major crypto to keep an eye on as we enter the second part of 2025. With its recent improvement, great metrics and growing interest from institutional investors, the industry should do well in the future. At the moment, token is supported by mid-tier and long-term investors in its climb.