Sui’s June 1 unlock represents 1.32% of circulating supply, with $70 million allocated to Series B investors likely seeking returns. Historical data shows previous unlocks correlated with price declines, creating anticipation of similar patterns. The project’s $20 billion in remaining locked tokens adds long-term inflation concerns.
The allocation structure raises decentralization questions, as Mysten Labs’ treasury receives a significant portion. Critics argue this centralizes governance power, potentially deterring decentralized finance protocols from building on the network.
Market makers have increased SUI futures open interest ahead of the unlock, suggesting hedging activity. Options data shows heightened demand for puts, indicating traders are positioning for downside volatility despite Sui’s recent mainnet upgrades.
