Sui on May 26, 2025: Impact of DEX Hack and Future Outlook

Analysis of Sui on May 26, 2025, focusing on the Cetus DEX hack, fund recovery, and price trends

On May 26, 2025, Sui (SUI), an emerging blockchain in the crypto market, was significantly impacted by news surrounding a hack of Cetus, its largest decentralized exchange (DEX). The price of SUI traded between $3.81 and $3.90, reflecting a roughly 5% decline from the previous day. This price drop was primarily due to the recent hack and its impact on user confidence, though recovery efforts and corrective actions offer a nuanced outlook. The Cetus DEX hack, which occurred on May 22, resulted in the theft of approximately $260 million from liquidity pools. The attacker exploited flaws in the pricing mechanism, using fake tokens like BULLA and MOJO to manipulate reserve calculations and drain funds. However, Sui’s validators and the Cetus team acted swiftly, freezing about $162 million of the stolen funds. While this prevented further losses, it sparked debates about Sui’s decentralization, as some argue that validators’ ability to freeze funds raises concerns about censorship resistance. Technically, SUI showed signs of price stabilization after dropping to the $3.80 support level. The RSI at 48 indicates a neutral stance with a bearish tilt, but relatively low trading volume suggests easing selling pressure. If SUI holds the $3.80 support, a recovery to $4 is possible, but a break below could push prices to $3.5. Fundamentally, Sui remains attractive to DeFi and NFT developers due to its high transaction speeds and low fees. The Sui Foundation announced collaboration with security teams to strengthen protocols and prevent similar attacks. Despite the hack, the total value locked (TVL) in Sui’s ecosystem remains above $1.2 billion, signaling relative confidence. Reports of an institutional fund acquiring 8 million SUI units also indicate long-term optimism. However, risks persist. The hack has eroded trust, particularly among liquidity providers, and Sui-based tokens like BULLA saw losses of up to 90%. Additionally, regulatory uncertainties, such as delays in crypto ETF approvals, could weigh on the market. Overall, Sui faces short-term bearish pressure, but swift recovery efforts and protocol improvements could restore market confidence. Investors should closely monitor security developments and technical indicators for informed decisions.