Sui Faces Ongoing Pressure Amid ETF Delays and Security Incident
Sui (SUI) has been hit by prolonged downturns following a meaningful SEC move. SUI dropped 4% on Thursday, adding to this week’s losses totaling 14%. The cryptocurrency is struggling under a cloud of negative sentiment, affecting the entire Sui ecosystem.
The latest setback for Sui is due to the U.S.Securities and Exchange Commission’s recent decision. On June 4, the SEC delayed its ruling on the Canary Capital’s spot SUI ETF.This uncertainty pushed Sui near its weekly low of $3.06, similar to the levels during the May 30 flash crash when it plummeted 20% in 24 hours.
Adding to sui’s woes is the aftereffect of the Cetus Protocol hack.On May 22, the Sui-based protocol was exploited, leading to an estimated $223 million loss. This incident impacts Sui greatly due to its central role in the ecosystem. cetus Protocol supported token swaps and yield farming for over 62,000 users, generating over $7.15 million in daily fees. Post-hack, the team froze hacker wallets, which raised concerns about Sui’s decentralization.
The wider crypto market’s downturn has also affected Sui. Other major tokens like Solana, Dogecoin, Cardano, and Shiba inu have seen significant losses over the past week, compounding Sui’s troubles.
