- Sui (SUI) struggles to break above $4 despite ETF momentum from 21Shares and Canary Capital.
- Declining network activity and falling active users raise concerns about long-term price sustainability.
Sui (SUI), a Layer 1 blockchain gaining traction among institutional players, finds itself at a critical crossroads. While financial giants like 21Shares and Canary Capital race to secure approval for the first U.S.-based spot ETF tied to SUI, the asset struggles to hold ground below the $4 mark—raising questions about its short-term outlook.
21Shares recently partnered with Sui in a move aimed at strengthening its ETF proposal and boosting global exposure for the digital asset. Duncan Moir, President of 21Shares, expressed high confidence in Sui’s potential, stating, “Since our earliest research into Sui, we believed it could become one of the most exciting blockchains in the industry.” The firm’s ETF filing also features Coinbase as its proposed custody partner, signaling a serious institutional commitment.
Also read: Solana (SOL) Price Prediction May 2025: Will SOL Break $155 Resistance or Face a Sharp Pullback?
However, optimism on paper clashes with weakening fundamentals on-chain. After rebounding from April’s lows, SUI has maintained a level above its 200-day moving average—often seen as a bullish signal. Yet, this technical support is clouded by a sharp decline in network activity. Active wallet addresses have dropped from nearly 2 million to 1.1 million, suggesting waning user engagement and investor caution.
This divergence between ETF-driven enthusiasm and underlying network contraction presents a dilemma for traders. While the potential ETF approval could catalyze a price breakout, the falling address activity may hinder upward momentum unless usage metrics begin to recover.
Market analysts caution that unless Sui sees a resurgence in on-chain engagement, even a strong institutional push might not be enough to drive sustained gains. The $4 resistance level remains a psychological and technical barrier that SUI must overcome to reignite bullish sentiment.
As the ETF battle between 21Shares and Canary Capital intensifies, investors should watch both regulatory progress and blockchain activity closely. In a market where hype can spark rallies—but fundamentals sustain them—SUI’s next chapter will likely hinge on more than just headlines.
