In recent times, Layer 1 blockchain protocol Sui (SUI) again experienced 120% surge over the past month, which pushed its token to a new high of $2.35 on Oct 13. SUI was able to beat the top 10 largest cryptocurrencies by rising.
But since getting to this peak the token has lost close to 5% as investors worried about insider selling allegations targeting project stakeholders. Social media market expert LightCrypto also raised eyebrows about the sustainability of SUIs gains. Quintupling from its $0.5 low of August 5, the token has become sceptical even under friendly macroeconomic conditions.
SUI Faces Valuation Concerns
LightCrypto asked whether Solana could be upstaged by the token as it is hit with a fully diluted valuation (FDV) of $23 billion. He also disparaged the distance between his approach and the other two, and wondered whether the community could advocate that SUI is worth such a high valuation.
Valuation concerns were not the only issues, the LightCrypto called out insider selling during the blockchain protocol rally, claiming insiders have dumped $400 million worth of tokens, including a suspected large endowment fund. Retail investors will feel uneasy about this trend, which has been ongoing for prices substantially below current price levels, the expert warned.
However, The blockchain protocol continues to be a favorite, trading at $2.24 with 36 percent increase in trading volume on Sunday and reaching $1.7 billion. LightCrypto analysis indicates that insider selling can lead into a market correction especially if retail buys are taking place while insiders sell.
The first major support level for SUI comes in at $2.04. For example, LightCrypto’s claims, if true, make for harder risk if Bitcoin’s failure to return to its $73,700 high, or what looks like oversold momentum, do not lead to bullish action.
