Sui Gains Momentum with Token Unlock and ETF Plans

Sui, developed by Mysten Labs, initiated a major token unlock of 74 million SUI tokens and pursued a spot ETF filing with 21Shares in May 2025.

This reflects growing institutional interest and solidifies Sui’s position in the Layer-1 market, potentially influencing broader market dynamics and investor strategies.

Sui Unleashes 74 Million Tokens Amid Rising Interest

Mysten Labs, co-founded by former Meta engineers, has seen increasing interest in its Sui blockchain project. This month, 74 million SUI tokens were unlocked according to a set schedule.

Federico Brokate, Head of U.S. Business, 21Shares, said, “The partnership reflects our long-standing belief in Sui’s potential as a major blockchain platform, aligning with Sui’s technical foundation, decentralized finance (DeFi) ecosystem, and developer community.” This quote highlights 21Shares’ filing with the SEC for a spot SUI ETF, indicating institutional confidence in Sui’s potential.

Market Stability Tested as Sui Sees Price Fluctuations

The token unlock provides additional liquidity, yet aims to stabilize the market through staking incentives. Sui experienced slight price declines, but fundamentals remain solid, mitigating significant investor concerns.

Regulatory engagement through 21Shares’ ETF proposal aligns with trends in adapting to emerging Layer-1 protocols. The U.S. market might witness increased Layer-1 investments, paralleling Bitcoin and Ethereum ETF paths.

Comparing Sui’s Unlock to Solana and Avalanche

Sui’s unlock resembles Solana’s and Avalanche’s past supply releases, where initial volatility subsides as staking safeguards token stability. This model supports long-term growth within Layer-1 ecosystems.

Kanalcoin experts suggest that Sui’s high throughput and developer engagement create robust growth prospects. Maintaining developer and DeFi integration, Sui is poised for impactful blockchain scalability success.