Sui Analysis on June 4, 2025: Recovery from Hack and Bullish Potential

Sui shows stability on June 4, 2025, post a $223M Cetus hack. DeFi growth and institutional support bolster a bullish outlook.

On June 4, 2025, Sui (SUI), the native token of the layer-1 Sui blockchain, demonstrates relative stability following recent volatility triggered by a $223 million hack of the Cetus protocol. SUI is currently trading between $3.5 and $3.6, showing signs of recovery after an 8.28% decline over the past week. Daily trading volume has risen 7.2% to $921.12 million, indicating strong market interest. Despite recent challenges, DeFi growth and institutional support paint a positive outlook for Sui. The Cetus protocol hack, affecting the largest decentralized exchange (DEX) in the Sui ecosystem, occurred on May 22, 2025, temporarily shaking investor confidence. However, the Sui Foundation’s swift response, including a loan to fully reimburse affected users and a community vote to release $162 million in frozen tokens, has helped restore trust and stabilize the price. From a technical perspective, Sui is consolidating between $3.4 and $3.6, with the Relative Strength Index (RSI) at around 45, suggesting potential for building bullish momentum. Analysts believe breaking the $4 resistance could drive the price to $5 or even $7.56 by the end of June. However, the $3.4 support level is critical, and a breach could lead to a correction down to $3.2. The Cetus hack and June’s 58.35 million token unlock could increase selling pressure. The growth of Sui’s DeFi ecosystem is a key factor supporting the price. The total value locked (TVL) in Sui’s DeFi protocols exceeds $4 billion, including $900 million in stablecoins. Projects like DeepBook and Scallop are driving adoption within the ecosystem. Additionally, 21Shares’ filing for a Sui-linked ETF and Grayscale’s launch of the SUI Trust signal strong institutional backing. However, Sui faces challenges. Token unlocks, such as the 58.35 million tokens released in June, could heighten selling pressure. Geopolitical tensions and macroeconomic uncertainties may also amplify market volatility. Competition from blockchains like Solana remains a threat. Overall, Sui’s outlook is bullish due to its DeFi growth, institutional support, and scalable technology. Investors should monitor regulatory developments, token unlocks, and technical trends. With its high speed and low fees, Sui has solidified its position as a leading blockchain in the cryptocurrency market.