SUI gains 115% in September backed by ecosystem growth

SUI was the best-performing altcoin in September, surging 115% and hitting a five-month high.

At the time of writing, Sui (SUI) was trading at $1.77, registering a 7% price increase during the day, and its market capitalization exceeded $4.925 billion, reaching an all-time high. Moreover, the daily transaction volume of the Layer-1 blockchain also increased by 164% in the last 24 hours, reaching around $1.06 billion.

Often seen as a competitor to Solana, Sui has seen impressive growth, driven by increased interest from users and developers. Data from DeFI Llama shows that the total value locked in its ecosystem has increased from $383 million recorded in August to an all-time high of $1 billion.

Some of the most notable Sui dApps that have seen significant growth in TVL are the NAVI protocol, Cetus, Suilend, and Scallop Lend, which have accumulated over $165 million in assets each.

Sui’s entry into the blockchain gaming industry, a key area for blockchain adoption, has been a major factor behind the recent rise.

In early September, Sui blockchain developer Mysten Labs opened pre-orders for the SuiPlay0X1 handheld gaming device, which combines Sui’s blockchain technology with a Linux-based operating system and supports both traditional PC and blockchain-based gaming.

To create excitement, users who pre-ordered were given the opportunity to create a wallet that would receive a unique NFT upon delivery of the device.

Another key driver of SUI’s rise in September was Grayscale’s decision to open Sui Trust to accredited investors, increasing credibility and attracting institutional interest in Sui.

Moreover, Sui’s recent integration of USDC into its ecosystem and partnership with US movie subscription service MoviePass have also contributed to the bullish momentum.

Technicals point to bullish momentum

Sui saw a significant increase in open interest in futures, reaching an all-time high of $485 million on September 30.

SUI price, 20-day and 50-day EMA chart | Source: crypto.mews

The altcoin is currently trading above its 50-day and 200-day moving averages, which formed the golden cross on September 22; This is an important bullish signal in technical analysis.

SUI Bollinger Bands and RSI chart | Source: crypto.news

As I write these lines, the Relative Strength Index has risen to 77 as the price of SUI approaches the upper Bollinger Band at $1.9754.

These indicators suggest that a strong bullish momentum continues for Sui and there is potential for further gains in the short term. If this trend continues, the next key resistance level will be $2.1839, which is the March high and is 24% above the current price.

However, there is a risk of a correction in the price of SUI, as approximately 64.2 million SUI, representing 2.4% of the circulating supply and valued at $108.5 million, are scheduled to be released on October 1, according to Token Unlocks it could be.

A significant portion of these tokens (61%) will be allocated to early investors in the project’s Series A and B financing rounds. If these investors choose to convert their assets into cash, this could create significant selling pressure and potentially offset the recent bullish momentum.