SUI Analysis: DeFi Growth and ETF Potential on May 21, 2025

Analysis of SUI’s DeFi growth and ETF speculation impact on price on May 21, 2025

On May 21, 2025, SUI emerged as a focal point in the crypto market, driven by DeFi ecosystem growth, ETF speculation, and market activity that captured investor attention. SUI’s price, trading between $3.75 and $3.89 in recent weeks, climbed to $3.90 on this day but corrected to $3.85 due to selling pressure. This volatility reflected shifting market sentiment and external influences. Technical analysis indicates SUI is consolidating above the $3.85 support level on the daily timeframe. The Relative Strength Index (RSI) at around 62 suggests bullish momentum, though nearing overbought territory could trigger a short-term correction. Breaking the $4.00 resistance could propel the price toward $4.70, while key support at $3.75 may prevent further declines. Fundamentally, SUI’s DeFi ecosystem growth was a major driver. The total value locked (TVL) in SUI’s DeFi surpassed $2 billion, reflecting a 35% increase in active accounts over the past month. With 2.5 million daily active addresses, SUI ranks as the third-largest blockchain by user activity, and its decentralized exchange (DEX) volume has surpassed Avalanche, Polygon, and Optimism combined. This positions SUI as a DeFi leader. Speculation around a spot SUI ETF also played a significant role. A strategic partnership with 21Shares, a leading ETP provider, fueled ETF rumors, boosting demand despite the SEC’s decision being delayed until August 2025. Additionally, Bitlayer’s Peg-BTC launch on the SUI blockchain enabled Bitcoin’s use in SUI’s DeFi ecosystem, with over 587 BTC added since February 2025. Whale activity was notable, with on-chain data showing accumulation at lower price levels, signaling long-term confidence. However, macroeconomic factors like trade tensions and Federal Reserve policies have heightened market caution. Analysts predict that with an ETF approval, SUI could reach $8.57 by the end of 2025, though a bearish scenario might see it drop to $3.84. In the long term, institutional adoption, ongoing DeFi development, and technical innovations like SUI’s object-based architecture paint a positive outlook. Investors should monitor market developments closely and employ risk management to capitalize on opportunities.