The price of Sui (SUI) has dropped sharply after its market debut<\/a> across leading cryptocurrency exchanges.<\/p>\n On May 5, the SUI price was $1.26 per token, down about 70% from its record high of around $4, established two days ago on Binance. <\/p>\n Interestingly, on other exchanges like Kraken, the token\u2019s market top was $1.60 or lower, suggesting it was in \u201cprice discovery<\/a>\u201d mode after the launch.<\/p>\n Still, SUI maintains its overall market gains, up nearly 1,200% from its market debut. <\/p>\n SUI\u2019s initial uptrend drew\u00a0support from traders<\/a> who view Sui \u2014 a new entry into the long list of layer-1 blockchain projects \u2014 as potentially more scalable than its rivals.<\/p>\n Mysten Labs, Sui\u2019s original contributor, asserts<\/a> that\u00a0it will become the first internet-scale programmable blockchain platform thanks to its claims of processing about 300,000 transactions per second. In comparison, Solana handles up to 10,000 transactions per second.<\/p>\n Venture capitalists led by Andreessen Horowitz and FTX Ventures have invested $336 million in the Sui project<\/a> via two investment rounds in 2021 and 2022. Mysten Labs confirmed<\/a> that the rounds gave investors access to its firm\u2019s equities, not SUI tokens.<\/p>\n However, the project\u2019s token economics shows that it has allocated 14% of its 10 billion SUI supply to investors. Mysten Labs has not yet revealed when it will distribute these tokens or any associated vesting schedule.<\/p>\n Regarding FTX Ventures, a subsidiary of the now-defunct FTX crypto exchange, Mysten Labs repurchased the stake held<\/a> by the firm in April 2023. Furthermore, it took back the rights to buy SUI tokens previously held by FTX for about $96 million.<\/p>\n Traders and analysts have shown their conviction in the Sui project\u2019s goals to become an attractive blockchain alternative. However, there are also concerns about SUI\u2019s supply schedule.<\/p>\n Related:\u00a0What is Tokenomics? A beginner\u2019s guide on supply and demand of cryptocurrencies<\/a><\/em><\/strong><\/p>\n Notably, the Sui Foundation plans to increase the SUI supply by approximately 15% by the end of 2023, which, according to analyst Dmitriy Lavrov, could prompt traders to wait for further price declines before entering the market.<\/p>\n Yes, it makes sense to wait for better prices.<\/p>\n \u2014 Dmitriy Lavrov (@thedlavrov) May 3, 2023<\/a><\/p><\/blockquote>\n From a short-term technical perspective, the SUI price faces interim sell-off pressure near $1.31. <\/p>\n A pullback scenario could have the token eye $1.26 as its short-term downside target. And suppose the oversupply scenario prevails. Then, the price could drop to $1.21 on May 5 or over the weekend, down 7% from current prices.\u00a0<\/p>\n Conversely, analyst Ameba sees<\/a> SUI rising toward $1.50 in May based on its decisive close above its descending trendline resistance. Fellow trader Crypto Mikey\u00a0projects<\/a> a similar uptrend for the Sui price.<\/p>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-05\/a8f826e6-6b6a-4d70-8f9f-4104ed4655bc.png\")
Early SUI price fundamentals<\/h2>\n
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SUI supply overload?<\/h2>\n
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