SUI is buying and selling at $3.62 at press time, down 1% up to now 24 hours, because the token struggles to get well from the aftermath of the $223 million Cetus Protocol hack on Might 22.
The assault, which is without doubt one of the greatest decentralized finance hacks this 12 months, has solid a shadow over Sui’s (SUI) ecosystem. It has sparked considerations concerning the community’s decentralization and stalled bullish momentum. Earlier than the assault, SUI had risen greater than 60% in a month, peaking on at round $4.29 on Might 12.
Sui’s spectacular rally was due to the rising curiosity in real-world asset tokenization and new institutional partnerships. However the assault triggered a pointy sell-off, with SUI dropping virtually 14% in a day. It’s now down practically 20% from its pre-hack ranges and buying and selling in a variety between $3.48 and $3.62.
The exploit focused flaws in Cetus’s sensible contracts utilizing spoof tokens like BULLA and MOJO to control value feeds and deplete liquidity swimming pools. The SUI/USDC pool alone had about $11 million stolen from it. Buying and selling was halted, and the overall worth locked on the Sui chain fell from $2.13 billion to $1.92 billion.
Cetus protocol’s native token fell by 40%, and because of the lack of liquidity, USD Coin (USDC) momentarily misplaced its greenback peg. Sui validators efficiently froze $162 million of the stolen property by blacklisting the attacker’s pockets. This prevented many of the funds from leaving the community, however it raised questions concerning the true extent of validators’ energy.
Critics argue that freezing transactions on demand goes towards the thought of decentralization. Some identified {that a} small variety of validators and insiders might management many of the community, with only a few customers taking part in governance.
Available on the market aspect, Coinglass information reveals that derivatives quantity within the final day has jumped practically 40% to $3.57 billion, suggesting elevated short-term curiosity, possible from volatility merchants. On the identical time, open curiosity dropped 2.9% to $1.77 billion, exhibiting indicators that some merchants could also be pulling again or taking income.
Technical indicators present blended indicators. The relative energy index is impartial at round 50. Brief-term momentum indicators level to a potential upside, however the transferring common convergence divergence is exhibiting a bearish crossover. Brief-term transferring averages point out downward strain, whereas longer-term indicators present extra bullish indicators.
The 50-, 100-, and 200-day transferring averages are all flashing purchase indicators, suggesting that if SUI can stand up to the harm brought on by the hack, it’ll proceed to be in an total upward pattern. For now, SUI is caught under the $4 resistance. Merchants are watching carefully to see whether or not it will possibly break above or if the fallout from the Cetus hack will preserve weighing available on the market.