$SUI Price has already proven this point. The supply of $SUI continues to increase, yet its value keeps falling.
The most important driver of value is scarcity. Suppose the rate of demand growth does not exceed the rate of supply growth. Then, the more abundant something is, the lower the value per unit. Gold is valuable partly because it is scarce. Aluminum is also useful, but because its reserves are plentiful, the value per unit is dramatically lower.
The same logic applies to cryptocurrencies.
Bitcoin’s design philosophy is based on scarcity. Its supply cap is 21 million coins, and no additional supply will be added. SUI is different. SUI’s maximum supply is 10 billion coins, but currently only a portion is in circulation; the remaining tokens will be issued continuously according to its distribution schedule.
The market has already priced in this situation.
Despite periods of strong demand and speculation, SUI’s price has kept falling. Recent price data show that its trading price is around $0.77, whereas it previously reached several dollars.
For long-term holders, the issue is the asymmetry caused by token unlocks.
Newly unlocked SUI token holders may not have bought those tokens at the market price you paid. They can obtain those tokens through previously allocated distributions, giving them a massive advantage over those who purchased spot at the current price. As these tokens enter the market, existing holders will have to bear the dilution effect and any selling pressure that results.
Therefore, this system favors whoever gets the newly issued supply, while long-term holders are hit with a double blow:
More tokens enter circulation → scarcity decreases → supply pressure increases → each existing token’s share in the network becomes smaller → holders need ever-increasing demand to maintain the same price.
That’s why the problem isn’t just whether SUI is useful. Utility does not automatically create scarcity.
The evidence is in the price, and the math is quite simple: if supply keeps increasing, demand pressure will keep increasing.
Bitcoin requires the market to compete over a fixed supply.
SUI requires the market to absorb a supply that keeps growing.
For anyone considering holding spot SUI long-term, this distinction is crucial.
The most important driver of value is scarcity. Suppose the rate of demand growth does not exceed the rate of supply growth. Then, the more abundant something is, the lower the value per unit. Gold is valuable partly because it is scarce. Aluminum is also useful, but because its reserves are plentiful, the value per unit is dramatically lower.
The same logic applies to cryptocurrencies.
Bitcoin’s design philosophy is based on scarcity. Its supply cap is 21 million coins, and no additional supply will be added. SUI is different. SUI’s maximum supply is 10 billion coins, but currently only a portion is in circulation; the remaining tokens will be issued continuously according to its distribution schedule.
The market has already priced in this situation.
Despite periods of strong demand and speculation, SUI’s price has kept falling. Recent price data show that its trading price is around $0.77, whereas it previously reached several dollars.
For long-term holders, the issue is the asymmetry caused by token unlocks.
Newly unlocked SUI token holders may not have bought those tokens at the market price you paid. They can obtain those tokens through previously allocated distributions, giving them a massive advantage over those who purchased spot at the current price. As these tokens enter the market, existing holders will have to bear the dilution effect and any selling pressure that results.
Therefore, this system favors whoever gets the newly issued supply, while long-term holders are hit with a double blow:
More tokens enter circulation → scarcity decreases → supply pressure increases → each existing token’s share in the network becomes smaller → holders need ever-increasing demand to maintain the same price.
That’s why the problem isn’t just whether SUI is useful. Utility does not automatically create scarcity.
The evidence is in the price, and the math is quite simple: if supply keeps increasing, demand pressure will keep increasing.
Bitcoin requires the market to compete over a fixed supply.
SUI requires the market to absorb a supply that keeps growing.
For anyone considering holding spot SUI long-term, this distinction is crucial.