SUI is stuck within the tight range and is finding it difficult to break above this level despite the SUI network hosting more than stablecoins ($430 million). Even the technical front on SUI looks very bearish.
According to DefiLlama, SUI is hosting more than $440 million worth of stablecoins on its platform, and it is ranked as the nineteenth largest ecosystem in terms of stablecoin valuation. In the past 7 days alone there was an increment of 32%, or an addition of nearly $110 million worth of stablecoins to the network.
A growing stablecoin supply is often viewed as a sign of increasing liquidity and capital entering a blockchain ecosystem. Stablecoins are typically used as the primary trading, lending, and payment asset in decentralized finance (DeFi), so a larger supply means users have more capital available to deploy across the network.
As this liquidity is put to work in decentralized exchanges, lending protocols, and other applications, transaction activity increases, generating greater demand for block space and strengthening the network’s overall utility. Since transaction fees on Sui are paid in SUI, higher on-chain activity can translate into increased demand for the native token over time.
While stablecoin inflows do not guarantee an immediate price rally, sustained capital inflows often improve network fundamentals, which can eventually support SUI’s long-term valuation if user activity and adoption continue to grow.
As shown in the chart above, SUI is still struggling to break the shackles as it consolidates within a tight range. SUI’s price has been confined between the $0.67 and $0.69 levels since the latter end of July, and it still continues. In addition to this, the technical front does not give a bright picture about the SUI’s price action.
The descending triangle shown in the above image is a bearish pattern where the token makes lower highs while the bottom stays flat. As SUI is currently forming the apex of the descending triangle, there is a high chance it will complete the pattern and then further fall.
