SUI is on fire – What’s driving the surge?

SUI has been making some serious noise lately, with its price going through the roof. This coin has jumped about 93% in a week and 13% in just twenty-four hours.

Let’s break it down. 

The price of SUI went from around $0.50 on August 5, to a peak of nearly $0.95 by August 12. This has pushed SUI’s market cap over $2.4 billion, making it the 30th largest cryptocurrency by market value.

Grayscale shakes up the market

One of the big players behind this surge is Grayscale Investments. On August 7, they launched new crypto investment trusts, and guess what? SUI was on the list. 

When Grayscale puts their weight behind a coin, it’s like a green light for investors. It’s not just retail investors either. Institutions are also taking notice.

This kind of institutional backing can do wonders for a coin’s reputation. Suddenly, everyone wants a piece of the action.

But the broader market recovery also played a part in SUI’s rise. Around the same time, the overall crypto market saw a bounce, with the global crypto market cap rising from $1.9 trillion to $2.07 trillion.

But while SUI’s price was climbing, the total open interest in the market actually dropped from $360 million to $341 million. This means that a lot of short sellers got burned as the price went up. 

When shorts get squeezed, they have to buy back the coin to cover their positions, which pushes the price even higher.

Technical dynamics and market recovery

Raoul Pal, a well-known macro analyst, pointed out that many people were caught off guard by SUI’s surge. According to Raoul, SUI still has to prove itself by breaking its downtrend compared to SOL.

Let’s not forget about the memecoin factor. SUI has been riding the memecoin wave, which has dominated the crypto scene in 2024. 

Love them or hate them, memecoins have a way of capturing attention, and SUI is no different. The chart above shows that SUI has broken out of a downtrend and bounced back strongly from what traders call “resting liquidity.” 

This means there’s a solid foundation for more gains, especially with a market that’s recovering after a summer slump.

Marketing is another big piece of the puzzle. There’s talk of a massive marketing push for SUI in Q4, with millions set to flow into the ecosystem. 

A bottomed-out chart, combined with big marketing dollars, usually spells good news for a coin. 

Andrew Kang, the founder of Mechanism Capital, mentioned that there’s also been a recent technical upgrade on the SUI platform that could open the door for new and innovative applications. That might’ve also contributed to the surge.

Kang isn’t the only one bullish on SUI. The market sentiment is clearly in favor of this coin, with aggressive price action and no sign of a pullback. If the recent performance upgrades deliver as expected, SUI could see even more upside.