The Sui ecosystem has recently performed impressively, with multiple factors driving the surge of tokens and projects.

Recently, the Sui ecosystem has experienced a significant upward trend, with its governance token SUI increasing by over 75% within a week, far exceeding the overall market performance during the same period. This phenomenon is intertwined with multiple complex factors, including speculative enthusiasm triggered by market rumors, noticeable changes in capital flow, and ongoing improvements in the ecosystem's fundamentals. This article will delve into the capital flow trends during this upward movement, key news catalysts, on-chain data performance, and potential risks, providing a comprehensive interpretation of the logic behind this ecological celebration.

Capital Flow Analysis: Hot Money Floods into Exchanges, Contract Positions Surge

From the on-chain capital flow in recent months, the capital changes of Sui are not very obvious. Over a three-month period, Sui has shown a net outflow of $32 million, which is not considered high. The on-chain capital flow changes in the past month and the past week are even more negligible, and it has not even entered the top twenty in the public chain rankings.

However, at the exchange level, the inflow of funds into the Sui ecosystem is quite significant. Data shows that in the past seven days, the spot fund inflow of SUI reached 62.86 million USD, ranking fourth among all coins, only behind USDT, ETH, and FUSD. In addition, ecosystem tokens of the Sui network such as WAL, MEMEFI, and CETUS also ranked in the top ten in the contract fund inflow list over the past seven days, reflecting a high level of capital activity in the Sui ecosystem.

The contract holdings of SUI Token have surged since April 21, growing from 700 million to 1.419 billion in just one week, almost nearing the previous high of 1.5 billion.

It is worth noting that most tokens in the Sui ecosystem have also seen significant increases within a week. Among the Sui ecosystem tokens recorded on a certain data platform, 35 tokens have risen by over 100% in the past week, accounting for 20% of Sui ecosystem projects, and 37.5% of tokens have increased by over 50%, showing a comprehensive blooming trend.

From a financial perspective, this rise is a comprehensive collective boost to the Sui ecosystem. Although most projects have not seen any actual positive developments, the price fluctuations on the market are very noticeable.

Multiple favorable factors drive market sentiment high

On April 21, mainstream Tokens generally began to rebound, and Sui's initial rise started in sync with the market rhythm, followed by a continuous stream of positive news. However, it remains difficult to determine whether this news is the true driving force behind Sui's surge or a "smoke screen" accompanying the price increase.

Recently, multiple cooperation news has emerged in the Sui ecosystem. For example, there are rumors that Pokémon may collaborate with Sui, stemming from an update in the privacy policy of the Pokémon HOME app, which lists Sui-related companies as authorized developers. Although the official source has not directly confirmed this, the news has quickly ignited the market's imagination.

Another important collaboration is the agreement with the financial platform xMoney and the crypto application xPortal, planning to launch the Sui branded virtual Mastercard in Europe, integrated within the xPortal application that has 2.5 million users.

ETF-related news is also considered one of the factors driving the rise of Sui. Although a certain asset management company established a "SUI ETF" statutory trust entity as early as January of this year, this news has recently been resurfaced, seemingly providing support for the rise of SUI.

In addition, the Sui network has recently made several positive advancements, such as collaborating with the Athens Stock Exchange Group to build an on-chain fundraising platform and launching verifiable off-chain privacy solutions. Overall, Sui's progress in various fields including Web3 gaming, privacy, and development environments combines to form a comprehensive positive outlook, which differs from the previous explosive reactions triggered by single pieces of news.

DEX Trading Volume Soars and Developer Activity Increases

Since April, the trading volume of the Sui network's decentralized exchange (DEX) has remained high, even reaching a historical peak of $998 million on March 29. The leading DEX in the ecosystem, Cetus Protocol, has driven the growth of the entire ecosystem, with its trading volume increasing by 84.5% in the past week, and the token CETUS has nearly doubled in a week.

Another important contributor is Kriya, which contributed $780 million on March 29, the day Sui network set a record for trading volume. This figure represents an increase of more than 100 times compared to the $7.28 million from the previous day.

The surge in trading volume of these two DEXs may be related to the airdrop of Walrus. On March 27, the decentralized storage project Walrus released an airdrop, and on the same day, the trading volume of the Token reached 380 million USD, which may be one of the main reasons for the recent increase in trading volume on the Sui network.

The increase in developer activity is also the underlying driving force behind the growth of the Sui network. Since December of last year, the frequency of code submissions to the Sui network has peaked, maintaining above 500 times per week, far exceeding the previous level of around 250 times, and surpassing that of some competitors.

Potential Risks and Future Challenges

Although the market is generally optimistic about the development prospects of Sui, there are still some risk points worth noting. First, the continuous unlocking of SUI Tokens brings persistent selling pressure, with tens of millions of Tokens released every week. These unlocked Tokens remain an uncertain factor in the rising cycle of SUI Tokens.

Secondly, the rising structure of the Sui ecosystem is currently mainly led by DEX or infrastructure projects, but the performance of MEME tokens or application/game projects has not yet stood out. Tokens with a market cap of over 10 million dollars are basically still early projects. From this perspective, the Sui ecosystem still needs to cultivate some "hit" applications to attract more users to truly enter the market.

In summary, the recent surge of SUI Token and its ecosystem is the result of the market's speculative enthusiasm, influx of funds, expectations in the contract market, and solid fundamental progress. However, while paying attention to the impressive performance of the Sui price, it is also necessary to be cautious of the selling pressure brought about by the continuous unlocking of tokens and to observe whether its application ecosystem can further thrive. The ability to create truly attractive popular applications for users will be the key to determining whether Sui can convert its current popularity into long-term value.