$SUI The following is the supply-and-demand relationship of the SUI price dropping from around $5.35 to around $0.80:
**Rule: When supply and demand are imbalanced, prices will fall.**
SUI is a典型 example.
1. SUI’s design philosophy is to increase its circulating supply year by year. As SUI continues to be released, the price will keep trending downward.
In other words, you’re still in the inflation phase. Another way to describe inflation is that prices will fall. The product’s supply will continue to increase until 2030.
2. The monthly supply shocks are extremely large compared with actual demand.
SUI’s unlocks follow a planned linear schedule, and constant downward pressure remains.
This means that every month, new buyers have to bear ongoing selling pressure from developers: they sell the free tokens obtained through unlocks, then sell the newly unlocked tokens, thereby driving down the price.
That’s exactly why the SUI price has fallen from a peak of $5.35 to $0.82–0.94, a drop of about 82% from its all-time high.
3. Why abundance actually leads to lower value
Economic principle:
Prices are dominated by scarcity— the more abundant a good is, the lower its price.
The supply curve shifts to the right every month—more SUI (security investment units) are created and liquidity becomes stronger.
Demand and the money supply are not unlimited, but the number of SUI unlocked tokens is unlimited.
4. Problems that are foreseeable in the future
Inflation will not end before the unlock period is finished. Prices will keep falling because supply continues to grow.
Alternatives:
1. **Equity subsidy emissions**—the amount decreases over time but it still continues
2. **Community reserves**—funding from the foundation’s allocations sold to support operations
So the source of funds changes from large amounts of venture capital to the foundation’s emissions, but the direction is the same: circulating supply keeps increasing. This means prices will continue to fall.
When you know that in the next four years the supply will keep growing, and there isn’t a sufficiently strong burn mechanism to offset that growth, buyers will reduce the price they’re willing to pay today. The more supply there is, the lower the value. That’s why the price has fallen from $5 to $0.80. And as SUI keeps unlocking, the price will continue to fall further to even lower lows.
**Rule: When supply and demand are imbalanced, prices will fall.**
SUI is a典型 example.
1. SUI’s design philosophy is to increase its circulating supply year by year. As SUI continues to be released, the price will keep trending downward.
In other words, you’re still in the inflation phase. Another way to describe inflation is that prices will fall. The product’s supply will continue to increase until 2030.
2. The monthly supply shocks are extremely large compared with actual demand.
SUI’s unlocks follow a planned linear schedule, and constant downward pressure remains.
This means that every month, new buyers have to bear ongoing selling pressure from developers: they sell the free tokens obtained through unlocks, then sell the newly unlocked tokens, thereby driving down the price.
That’s exactly why the SUI price has fallen from a peak of $5.35 to $0.82–0.94, a drop of about 82% from its all-time high.
3. Why abundance actually leads to lower value
Economic principle:
Prices are dominated by scarcity— the more abundant a good is, the lower its price.
The supply curve shifts to the right every month—more SUI (security investment units) are created and liquidity becomes stronger.
Demand and the money supply are not unlimited, but the number of SUI unlocked tokens is unlimited.
4. Problems that are foreseeable in the future
Inflation will not end before the unlock period is finished. Prices will keep falling because supply continues to grow.
Alternatives:
1. **Equity subsidy emissions**—the amount decreases over time but it still continues
2. **Community reserves**—funding from the foundation’s allocations sold to support operations
So the source of funds changes from large amounts of venture capital to the foundation’s emissions, but the direction is the same: circulating supply keeps increasing. This means prices will continue to fall.
When you know that in the next four years the supply will keep growing, and there isn’t a sufficiently strong burn mechanism to offset that growth, buyers will reduce the price they’re willing to pay today. The more supply there is, the lower the value. That’s why the price has fallen from $5 to $0.80. And as SUI keeps unlocking, the price will continue to fall further to even lower lows.