SUI faces 25.7M token unlock as supply overhang tests demand zone

A scheduled unlock of 25.7 million SUI tokens hit circulation on July 3, as on-chain trackers diverged on the exact timing and size of the release, adding selling pressure to the Sui blockchain's native token.

"The unlock introduces a supply overhang that could test SUI's demand zone support in the coming sessions," Jason Wu, on-chain analyst at Edgen, said. "Whether holders choose to liquidate or hold will determine the near-term price trajectory."

The 25.7 million tokens represent a meaningful addition to circulating supply, with the event tracked by multiple on-chain data monitors that reported slightly different figures for the release. The unlock was part of SUI's pre-scheduled token release calendar, which has been a recurring source of price pressure for the Layer 1 token.

SUI's demand zone — a price range where buyers have historically stepped in — now faces its most significant test since the token's last major unlock cycle. If selling pressure overwhelms bids, the token could break below its established support floor. Conversely, if demand absorbs the new supply without a sharp decline, it would signal strong holder conviction and market confidence in the Sui ecosystem.

The unlock comes as Sui's DeFi ecosystem continues to attract developer activity, with total value locked across protocols on the network fluctuating in recent weeks. The token's ability to hold its demand zone will depend on whether new buyers emerge to offset potential distributor selling, a dynamic that typically plays out over several days following large unlocks.

This article is for informational purposes only and does not constitute investment advice.