Sui dropped 6.8% and NEAR fell 5.8%, underperforming due to project-specific concerns and broader market dynamics. Sui faces impending token unlocks worth $170 million on June 1, creating fears of increased selling pressure. NEAR’s decline may reflect profit-taking after recent ecosystem growth announcements failed to meet inflated expectations.
Both projects operate in competitive sectors – Sui in Layer 1 smart contracts and NEAR in decentralized applications – where Bitcoin’s dominance has diverted investor attention. Their proof-of-stake models may also be losing favor compared to Bitcoin’s energy-intensive proof-of-work, which some investors now view as a security advantage.
The underperformance highlights market sensitivity to token supply inflation and competition among Layer 1 blockchains. As capital concentrates in Bitcoin and Ethereum, smaller smart contract platforms must demonstrate unique value propositions to avoid becoming “ghost chains.” Technical breakdowns below key support levels may have triggered algorithmic selling pressure.
