U.Today - Recent data reveals that a significant portion of the SUI token supply might be sold out, with market makers (MMs) holding approximately 66% of the circulating . This development has raised concerns among investors and traders about the potential impact on the SUI token's price and market dynamics. In this article, we will explore the reasons behind this situation and what it could mean for the future of the SUI .
SUI has reportedly allocated about 4% of its total supply to MMs. This translates to an additional 400 million tokens being added to the circulating supply. However, some observers argue that the actual number of tokens allocated is closer to 288 million, which would mean that MMs hold approximately 54% of the circulating supply.
The initial public circulation of SUI tokens stands at around 200 million due to the vesting schedules implemented by exchanges like OKX and Kucoin. As a result, a large portion of the circulating supply is held by MMs, which need to sell their holdings to hedge their options positions.
This concentration of SUI tokens in the hands of MMs has led to concerns about the potential impact on the token's price and market dynamics. If a significant percentage of the supply is sold out, it could lead to increased price volatility and potentially have a negative effect on the token's value. This has prompted some market participants to advise caution when bidding on SUI .
The situation with SUI highlights the importance of understanding token allocation and supply dynamics when evaluating digital assets. In this case, the large percentage of tokens held by MMs could create potential risks for investors and traders looking to gain exposure to the SUI token.