74 Million SUI Tokens Will Unlock on May 1 as Traders Brace for Market Reaction

The SUI ecosystem has been heating up lately with strong price moves and solid growth in decentralized finance (DeFi) activity. However, a major SUI token unlock is scheduled for May 1, around 74 million tokens, about 2.28% of the circulating supply. So far, only about 33% of the total supply has been released. This token unlock could create selling pressure because it adds fresh supply to the market. Unlock events often worry traders, but the real impact depends on demand, market mood, and how strong SUI’s fundamentals are at the moment.

SUI’s On-Chain Growth Paints a Positive Picture

Despite the upcoming SUI token unlock, its on-chain numbers have been very impressive. The total value locked (TVL) on Sui-based protocols jumped 40% in April alone, reaching $1.75 billion. Currently SUI price has increased by 5.56% over the last 24 hours and is trading at $3.84. This is a clear sign that users and developers are sticking around. Strong stablecoins growth on the network, from $630 million to $880 million, adds even more confidence to SUI’s position in the DeFi space. 

SUI Trading Volume Signals Rising Interest

The SUI network handled over $3.6 billion worth of transactions in just the last seven days, pushing its monthly trading volume above $11 billion. These numbers are impressive by any measure. Daily decentralized exchange volume is staying steady around $500 million. This consistent trading action suggests that even with the SUI tokens coming, there’s real demand that might absorb the new coins without much trouble.

Current Price Action: SUI Rally in Full Swing

The recent SUI rally has taken the token above major resistance levels. SUI is trading around $3.80 after breaking past the $3.30 resistance as shown in below chart. Momentum is still in favour of buyers, with moving averages and indicators flashing bullish signals. However, the relative strength index (RSI) is sitting at 78, which means the token is slightly overbought. While this shows strong buyer interest during the SUI rally, it also hints at possible exhaustion in the short term if profit-taking kicks in.

Chart 1- SUI/USDT Live Price, published on TradingView, April 28, 2025.

Could SUI Price Increase Continue Despite Unlock?

If SUI can hold above the $3.80 level, there’s a real shot at testing $4.00, a psychological level that could trigger more buying from momentum traders. However, if selling pressure builds after the SUI token unlock, SUI might dip back toward $3.30. A deeper pullback could find stronger support at $3.00, near the 10-day EMA. It all depends on how smoothly the market digests the new supply.

Final Thoughts: Balancing Growth and Caution

There’s no doubt that SUI has shown real strength lately, from DeFi adoption to stablecoins growth and higher trading volume. The SUI token unlock on May 1 will be an important test. If the market can absorb the new tokens without heavy selling, SUI could keep building momentum. For now, traders should keep an eye on support levels and watch for signs of either continued SUI price increase or a healthy pullback. Whatever happens, SUI remains one of the most exciting projects to watch in the crypto world today.

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