Why did the price of SUI fall?

Sui (SUI) dropped 7.98% in the last 24 hours, falling more than the overall crypto market, which was down 2.72%. The main reasons include a $3.44 million hack on Typus Finance (the third major DeFi breach on the Sui network in 2025), negative technical signals, and rising tensions between the U.S. and China that have made investors more cautious.

1. DeFi Hack Impact – Typus Finance breach raises concerns about Sui’s security
2. Technical Weakness – SUI price falls below important moving averages; indicators show oversold conditions
3. Global Trade Tensions – U.S.-China trade issues cause broad crypto market selloff

Deep Dive

1. DeFi Security Issues (Negative Impact)

Summary: On October 15, Typus Finance lost $3.44 million due to a weakness in its oracle system within an unaudited smart contract. This is the third major hack on Sui’s DeFi projects in 2025, following Cetus ($220 million) and Nemo ($2.4 million) attacks (Yahoo Finance).

Why it matters: These repeated security problems are shaking confidence in Sui’s DeFi space, which currently holds $2.17 billion in total value locked (TVL). The Typus hack caused investors to sell SUI tokens, worried about more hacks and possible government crackdowns on Sui’s security practices.

What to watch: How the Sui Foundation responds—whether they increase contract audits or offer compensation to those affected—will be key to restoring trust.

2. Technical Downtrend (Negative Impact)

Summary: SUI’s price fell below its 30-day and 200-day simple moving averages (both at $3.29). The Relative Strength Index (RSI) is at 33.61, nearing oversold territory. The price is now testing a key support level at $2.46, which is the 50% retracement from this year’s high.

Why it matters: This price action confirms a bearish trend. If selling continues, the next support level is $2.11 (61.8% retracement). Data from derivatives markets shows traders are reducing leveraged bets, with open interest down 15% since October 10 (CoinMarketCap Community).

3. Global Trade Concerns (Mixed Impact)

Summary: The crypto market dropped 2.72% after former President Trump announced a 100% tariff on Chinese goods, effective November 11. This news sparked fears of renewed trade wars. SUI’s 24-hour trading volume jumped 29% to $1.68 billion, a sign of panic selling during uncertain times.

Why it matters: Although this isn’t specific to SUI, the tariff news increased selling pressure across all risk assets. The Fear & Greed Index fell to 28, indicating “Extreme Fear,” which makes it harder for the market to recover until geopolitical tensions ease.

Conclusion

SUI’s recent decline is due to a combination of internal risks (DeFi hacks), technical weakness, and broader market fears linked to U.S.-China trade tensions. Despite these challenges, Sui’s fundamentals remain solid, supported by strong ecosystem partnerships and a $10.3 billion decentralized exchange volume in July. Short-term recovery depends on resolving security issues and whether Bitcoin can hold its $100,000 support level.

Key level to watch: Can SUI hold the $2.46 Fibonacci support? Falling below this could trigger automated selling down to $2.11.

What could affect the price of SUI?

Sui’s price is caught between concerns over DeFi security risks and positive signs from its growing ecosystem.

1. DeFi Security Issues – The third major hack in 2025 has shaken investor confidence.
2. ETF Approval Potential – The SEC is reviewing spot SUI ETF proposals, which could boost demand.
3. Ecosystem Growth – Real-world use and BTCfi developments are driving interest.

In-Depth Look

1. DeFi Security Risks (Negative Impact)

What happened:
In 2025, Sui’s decentralized finance (DeFi) platforms experienced three major hacks—Typus, Cetus, and Nemo—resulting in losses exceeding $225 million. The most recent, the Typus hack on October 15, involved $3.44 million stolen due to weaknesses in unaudited smart contracts and oracle systems. This highlights ongoing security challenges within Sui’s decentralized apps (dApps).

Why it matters:
Repeated security breaches can slow down adoption by big investors and cause users to pull their money out. After the Typus hack, SUI’s price dropped 26% within a week, showing how trust was affected. While efforts like Cetus recovering $162 million in frozen funds help restore confidence, unresolved vulnerabilities still weigh on the price.

2. ETF Regulatory Review (Positive Potential)

What’s happening:
The U.S. Securities and Exchange Commission (SEC) is currently reviewing proposals for spot SUI exchange-traded funds (ETFs) from Canary Capital and 21Shares. A decision is expected by January 2026. Nasdaq’s recent filing for 21Shares’ ETF indicates growing institutional interest.

Why it matters:
If approved, these ETFs could bring billions of dollars into SUI through regulated investment channels, similar to the impact Bitcoin ETFs had on their market. Futures trading already shows strong speculative interest, with open interest reaching $1.84 billion as of October 2025. However, if the SEC rejects these ETFs, SUI’s price decline of 33% year-to-date could continue.

3. Ecosystem Expansion & BTCfi (Mixed Impact)

What’s going on:
Sui’s total value locked (TVL) in DeFi rebounded to $2.1 billion by October 2025, partly thanks to BTCfi protocols, which make up about 10% of that total. Partnerships like xMoney’s payment gateway and projects such as Momentum Finance’s “Financial OS” and Walrus’ decentralized storage are adding real-world utility.

Why it matters:
Growing adoption in industries like dining—T’order’s integration covers $140 billion in that sector—helps balance out DeFi risks. However, Sui faces stiff competition from Solana, whose recent Alpenglow upgrade is 100 times faster, putting pressure on Sui’s technology. SUI’s 19% annual gain trails Solana’s 210%, showing the challenge.

Conclusion

Sui’s future depends on improving security, gaining institutional ETF approval, and expanding real-world use. The $2.50 price level tested on October 16 suggests buyers are stepping in, but breaking above $3.30 will require fixing trust issues in DeFi. Keep an eye on the SEC’s ETF decision and upcoming protocol upgrades like Mysticeti v2 and SEAL encryption for clues on where Sui is headed. Can Sui turn its DeFi weaknesses into a model for compliance and security?

What are people saying about SUI?

The Sui (SUI) community is feeling a mix of cautious hope and frustration. Here’s what’s making headlines:

1. Security breach shakes trust in DeFi projects
2. Traders watch for a price jump above $3.50
3. Growth in the ecosystem faces challenges from token sales

In-Depth Look

1. Typus Finance Hack Hits Sui’s DeFi Reputation (Negative)

According to @crypto.news, Typus Finance lost $3.4 million due to a weakness in its price oracle system. This is the third major security breach on Sui in 2025, following issues with Cetus and Nemo.
Read more
What this means: This is bad news for SUI because repeated hacks hurt confidence in Sui’s decentralized finance (DeFi) projects. If users don’t feel safe, fewer people will use the platform, slowing its growth.

2. Technical Traders Spot Potential Price Rebound (Positive)

Trader @mkbijaksana notes that SUI bounced off a support level at $3.30. If the price breaks above $3.50, it could rise to $4.00 or higher.
See details
What this means: This is a positive sign. Traders see the $3.30 to $3.50 range as a good buying opportunity. If the price breaks through resistance, there could be a 27% gain.

3. Ecosystem Growth vs. Token Unlocks (Mixed)

@BanklessHQ reports that Sui’s BTCfi total value locked (TVL) reached 10%, showing strong adoption. However, monthly token unlocks are adding $162 million in selling pressure.
More info
What this means: The outlook is mixed. While big players like Grayscale and ETF filings show growing interest, the increase in tokens being released could cause downward price pressure until 2030.

Conclusion

The overall view on SUI is mixed. The ecosystem is growing steadily, but ongoing security issues and token supply increases are concerns. Technical indicators suggest buyers are stepping in around $2.60 to $3.00, but preventing future hacks will be key to rebuilding trust. Keep an eye on Sui’s weekly decentralized exchange (DEX) volumes—if trading volume climbs back above $1 billion, it could signal renewed confidence after the Typus hack.

What is the latest news about SUI?

Sui is navigating challenges in decentralized finance (DeFi) while expanding its ecosystem. Here’s the latest update:

1. Typus Finance Hack (October 15, 2025) – The third major DeFi hack on Sui this year, resulting in a $3.44 million loss.
2. Momentum Finance Launches Financial OS (October 16, 2025) – A new platform on Sui that connects traditional finance (TradFi) with DeFi.
3. SUI Price Holds Steady (October 16, 2025) – The price stays above $2.63 despite broader market declines.

In-Depth Look

1. Typus Finance Hack (October 15, 2025)

What happened:
Typus Finance, a decentralized exchange (DEX) on Sui for perpetual contracts and options, lost $3.44 million due to a security flaw in an unaudited contract. The attacker took advantage of missing authority checks in a module launched in November 2024. This module was not reviewed in a security audit conducted in May 2025.

Why it matters:
This incident hurts confidence in Sui’s DeFi space, which has seen over $225 million lost to hacks in 2025 alone. However, Typus Finance is working with the Sui Foundation and security experts to recover funds and improve security, which could help restore trust over time. (Coinspeaker)

2. Momentum Finance Launches Financial OS (October 16, 2025)

What happened:
Momentum Finance has rebranded itself as a “Financial Operating System” built on Sui. It offers tools for managing liquidity, treasury functions, and compliant connections to traditional finance through a three-layer system: Liquidity, Stack, and TradFi Bridge.

Why it matters:
This is a positive development for SUI because it could attract institutional investors looking for regulated access to DeFi. The TradFi Bridge includes Know Your Customer (KYC) and Know Your Business (KYB) checks, making it easier for traditional financial institutions to participate. Sui’s ability to scale efficiently supports the adoption of real-world assets on the platform. (Yahoo Finance)

3. SUI Price Holds Steady (October 16, 2025)

What happened:
On October 16, SUI traded around $2.70, down 19% over the past week but maintaining support above $2.63. Analysts observed increased activity on Sui’s network, including record trading volumes on the Bluefin decentralized exchange and growing interest from institutional investors like Grayscale.

Why it matters:
The price action is cautiously optimistic. While SUI is showing signs of accumulation, it needs to break through resistance levels between $3.00 and $3.20 to confirm a stronger upward trend. New projects, such as the YLDS token launch in partnership with Figure Technologies, could help offset broader market challenges. (CryptoPotato)

Conclusion

Sui is facing challenges due to repeated DeFi hacks, which impact its reputation. However, it is also making strides with institutional-grade infrastructure and steady price performance. The success of innovations like Momentum Finance’s Financial OS will be key to attracting new investment. Keep an eye on Sui’s total value locked (TVL) and stablecoin inflows for signs of future growth.

What is expected in the development of SUI?

Sui’s roadmap is centered on expanding decentralized finance (DeFi), integrating gaming, and upgrading its technology infrastructure.

1. HyperSui Mainnet (Q4 2025) – Launch of a native decentralized exchange (DEX) to bring together Sui’s currently scattered liquidity.
2. AvA Markets Mainnet (Q1 2026) – An AI-powered platform for trading derivatives, aimed at attracting institutional investors.
3. SuiPlay 0X1 Gaming Expansion (2025) – Introduction of over 70 games and a new handheld gaming device.
4. Walrus Protocol Upgrades (Q1 2026) – Improvements to decentralized storage with a focus on privacy and security.

Deep Dive

1. HyperSui Mainnet (Q4 2025)

Overview: HyperSui will be Sui’s main decentralized exchange, allowing users to swap tokens, trade leveraged contracts, and interact across different blockchains. It’s built using Sui’s own Move programming language and aims to manage over $1 billion in assets by 2026.
What this means: This is positive for SUI because better liquidity can attract more users to DeFi on the Sui network. However, there are risks from competition with other DEXs like Cetus and possible delays in connecting with other blockchains.

2. AvA Markets Mainnet (Q1 2026)

Overview: AvA Markets is a decentralized platform for trading derivatives that uses artificial intelligence to provide trading signals. Supported by a $450 million fund from Nasdaq-listed Mill City Ventures, it seeks to bring both institutional and retail traders together.
What this means: This development is cautiously optimistic. Institutional investment could reduce price swings, but relying on AI models carries some risk if the technology doesn’t perform as expected.

3. SuiPlay 0X1 Gaming Expansion (2025)

Overview: Sui is expanding its gaming ecosystem with a new handheld device called SuiPlay 0X1 and an operating system named PLAYTR0N OS. It has partnerships with 65 game studios, and its social gaming app RECRDapp already has 1 million daily users.
What this means: This is a strong positive for SUI, as gaming could bring in many new users. Success will depend on keeping players engaged and competing with other platforms like Immutable.

4. Walrus Protocol Upgrades (Q1 2026)

Overview: The Walrus Protocol will receive upgrades to improve decentralized storage, including advanced encryption (SEAL) and programmable access controls. These features aim to support AI applications and enterprise data needs.
What this means: This is neutral for now. While it improves the network’s technology and may attract developers, it might not immediately increase demand for SUI tokens unless adoption grows quickly.

Conclusion

Sui’s roadmap shows a balanced approach, focusing on DeFi growth, gaming adoption, and strong infrastructure improvements. HyperSui and AvA Markets have the potential to boost the ecosystem significantly, but challenges in execution and market conditions will be important to watch. The key question is whether Sui’s focus on scalable AI and gaming will set it apart from other Layer 1 blockchains like Solana.

What updates are there in the SUI code base?

Sui’s software has received important updates to improve security, tools, and how transactions are confirmed.

1. Mysticeti v2 Launch (October 7, 2025) – Transactions finalize faster thanks to a new consensus method.
2. Testnet TLS Encryption (June 29, 2025) – Validator communications are now more secure.
3. Move VM 2.0 Update (May 20, 2025) – Transactions run 30–65% faster.

In-Depth Look

1. Mysticeti v2 Launch (October 7, 2025)

What happened:
Mysticeti v2 introduces a “fastpath” process that lets simple transactions, like sending tokens, skip the full consensus step. This cuts transaction finality time down to about 400 milliseconds.

The system separates transactions into two groups: fastpath for simple ones and full consensus for more complex ones. Validators quickly approve fastpath transactions with lighter checks while handling heavier tasks in parallel. Along with Pilotfish’s ability to run many tasks at once, this reduces delays during busy times.

Why it matters:
This upgrade is great news for Sui users because it means everyday transactions happen almost instantly, making payments and decentralized finance (DeFi) apps smoother. Developers also get more options to make their apps more responsive. (Source)

2. Testnet TLS Encryption (June 29, 2025)

What happened:
Sui required all validator communications to use TLS 1.3 encryption, which protects data from being intercepted or tampered with.

This update also introduced experimental “Party” objects—groups of transactions that can be programmed to happen together as one atomic operation. While this feature is currently only on the test network, it could support more complex DeFi and custody functions in the future.

Why it matters:
This is a foundational security improvement that doesn’t directly affect users yet but strengthens the network’s infrastructure. It’s a positive sign as Sui prepares for more institutional use. (Source)

3. Move VM 2.0 Update (May 20, 2025)

What happened:
Move VM 2.0 improved how Sui runs smart contracts by optimizing code execution and memory use. This made contract processing 30–65% faster depending on the task.

Key improvements included loading modules only when needed and better tracking of transaction costs (gas metering). This update coincided with DeepBook 3.1 launching permissionless liquidity pools, which lowered decentralized exchange (DEX) swap fees by about 15%.

Why it matters:
Faster smart contracts and lower fees make Sui more attractive to developers and users. Together with Mysticeti v2, this positions Sui as a fast and efficient Layer 1 blockchain, ideal for applications sensitive to delays. (Source)

Conclusion

Sui’s 2025 upgrades focus on enterprise-level speed (Mysticeti), stronger security (TLS), and cost savings (Move VM 2.0). With BTCfi protocols now holding 10% of Sui’s total value locked (TVL), these improvements could help Sui become a leading DeFi platform for Bitcoin-related projects.