Fundamental Analysis of Sui (SUI) on May 21, 2025: Market Outlook and Key Drivers

Fundamental analysis of SUI on May 21, 2025, exploring DeFi growth, network adoption, and on-chain data.

The fundamental analysis of Sui (SUI) on May 21, 2025, indicates a strongly bullish outlook, driven by decentralized finance (DeFi) growth, increasing network adoption, and technical advancements. SUI is currently priced at approximately $3.90, having surged to a high of $5.34 in recent months. This growth stems from robust fundamentals, growing adoption, and positive market sentiment, positioning Sui as one of the leading layer-1 blockchains. A primary driver is Sui’s success in the DeFi sector. With high transaction speeds, strong scalability, and the Move programming language, Sui has become an attractive platform for decentralized applications (dApps). The total value locked (TVL) in Sui’s DeFi protocols has reached around $2 billion, reflecting widespread adoption by developers and users. Lending protocols like SuiLend and decentralized exchanges like BlueFin create consistent demand for SUI, as users require the token to access these services. Network adoption has also seen significant growth. The number of daily active wallets exceeds 1.2 million, indicating rapid community expansion. NFT projects and blockchain-based games built on Sui, such as collaborations with brands like Adidas for NFT releases, have further driven demand. Additionally, Sui’s integration with analytical platforms like Binance Alpha has improved accessibility to Sui-based projects, bolstering investor confidence. These factors have elevated Sui’s adoption to levels competitive with leading blockchains like Solana and Ethereum. On-chain data paints a positive picture. Sui processed over 7.5 billion transactions in 2024, surpassing Ethereum and Polygon. Daily transaction volume exceeds $1.8 billion, confirming high network activity. Recent accumulation of approximately 500 million SUI by whales signals strong confidence among large investors. The circulating supply of 3.3 billion SUI, representing 33% of the total 10 billion supply, combined with a data storage mechanism that allows up to 99% refundability, helps mitigate inflationary pressure. From a macroeconomic perspective, 2025 market conditions favor Sui. Growing institutional interest, evidenced by proposals for SUI-based ETFs in the U.S. and Europe, suggests potential for new capital inflows. Potential easing of regulatory restrictions in the U.S. could further boost adoption of layer-1 blockchains like Sui. However, risks remain. Competition from blockchains like Ethereum, Solana, and Aptos, scheduled token unlocks that could increase supply, and stringent regulations in some jurisdictions pose challenges. In summary, Sui’s DeFi growth, widespread network adoption, and technical advancements provide strong growth potential in 2025. Investors should prioritize risk management and monitor network and market developments. Based on current data, SUI is expected to reach the $7–$10 range in the short term, provided positive trends persist.