According to recent statistics, a sizeable chunk of the SUI token supply may have already been used, with market makers (MMs) controlling around 66% of the available supply. Investors and traders are concerned about the possible effects of this event on the price and market dynamics of the SUI coin. We shall examine the causes of this issue and what it could imply for the SUI token’s future in this post.
According to reports, SUI has given MMs 4% of its overall supply. This results in the circulating supply of tokens increasing by 400 million more. The real amount of tokens distributed, according to some observers, is closer to 288 million, which would suggest that MMs possess about 54% of the total quantity that is in circulation.
Due to the vesting schedules put in place by exchanges like OKX and Kucoin, the original public circulation of SUI coins currently stands at about 200 million. As a result, MMs possess a sizable share of the circulating supply and must sell their holdings in order to hedge their option bets.
Concerns have been raised concerning the possible effects on the token’s pricing and market dynamics as a result of the concentration of SUI tokens in the hands of MMs. The price volatility might grow and the token’s value could be negatively impacted if a sizeable portion of the supply is sold out. Due to this, some market participants have suggested using caution when placing bids for SUI tokens.
The scenario with SUI serves as a reminder of how crucial it is to comprehend token allocation and supply dynamics while assessing digital assets. For investors and traders seeking exposure to the SUI token, the high proportion of tokens held by MMs in this situation may provide concerns.
