Cetus DEX Hack and Its Impact on the Sui Ecosystem

The Cetus DEX hack on May 22, 2025, shook the Sui ecosystem. Despite declines, analysis suggests a quick SUI recovery.

On May 22, 2025, the Sui (SUI) ecosystem faced a significant and unexpected event: the hack of Cetus, a major decentralized exchange (DEX) built on the Sui blockchain. The hack disrupted liquidity pools, causing the USDC stablecoin to temporarily depeg within the ecosystem. This led to sharp declines in many Sui-based tokens, particularly meme coins, some of which lost up to 99% of their value. Surprisingly, the SUI token itself saw a modest 2.2% price increase, prompting analysts to investigate the reasons behind this resilience. From a technical perspective, SUI was trading between $4.80 and $5.10. Despite the negative news, the Chaikin Money Flow (CMF) index at 0.19 indicated sustained demand for the token. Analysts suggest this limited growth may stem from rapid risk mitigation by market makers or opportunistic investors exploiting price disparities for arbitrage between centralized and decentralized exchanges. Key support lies at $4.50, with resistance at $5.35. Breaking resistance could push SUI toward $6, while a drop below support may trigger a correction to $4.20. The Sui ecosystem, known for its high scalability and Move programming language, continues to enjoy strong institutional backing. Recent developments like DeepBook V3 and Sui Bridge have driven the total value locked (TVL) to $2.6 billion. However, the Cetus hack raised concerns about the security of decentralized protocols on the network. The Sui team announced collaboration with Cetus developers to address losses and restore confidence. External factors, such as pro-crypto policies in the United States, also supported SUI’s stability. Still, analysts warn that new token unlocks or further negative news could heighten short-term volatility. Overall, despite the shock from the hack, analysis suggests Sui’s robust infrastructure and institutional support position it for a swift recovery. Investors should closely monitor developments and employ risk management strategies to capitalize on market opportunities.