Sui Blockchain Crosses $1B Stablecoin Supply Threshold

The Sui blockchain has crossed a new threshold, reaching over $1 billion in stablecoin supply.

The Sui (SUI) network has crossed a new threshold, reaching over $1 billion in stablecoin supply. The latest figures from on-chain analytics platform Token Terminal show a remarkable jump of 218.5% in the previous six months.

The increase in on-chain liquidity sets a new milestone for the network and signifies growing activity within its decentralized finance sector. Stablecoins are typically used by users to transact in advanced protocols and dApps.

Most users usually convert their holdings to stablecoins before undertaking yield farming, swaps or participating in lending protocols. Users are seen to be gearing up for activity in yield farming, swaps and lending protocols. This could signify users and builders becoming more involved in Sui’s developing decentralized finance sector.

The presence of numerous stablecoins indicates that users are participating in a variety of applications on the Sui platform. It often indicates a thriving ecosystem where users are interacting with multiple protocols.

Stablecoin assets are also allowing analysts to see the network as being increasingly mature. The funds are distributed among a range of stablecoins such as USDT, USDC, FDUSD, USDY and many other tokens currently on the Sui blockchain.

Stablecoin Liquidity Suggests Expanding Ecosystem Activity

By May 16th, Sui’s stablecoins had reached a total worth of over $1.027 billion. The stablecoin liquidity on the network has seen a 218.5% increase in the past six months.

The stablecoin assets on the network are now at their highest levels since the start of 2024. The figures also come as the SUI token price continues to trade in a volatile market.

However, the SUI price trading chart is showing signs of building momentum. Sustained upward pressure has driven SUI’s value past key resistance points of $3.74, $3.81, and $4.31. The move followed an extended accumulation and consolidation phase.

The price is now correcting slightly, with the current level near $3.89 forming a potential higher low. A resistance that previously held is acting as support for the price movement as it retraces. The market pattern indicates that the upward trend is intact.

According to technical analysis, a breakout from the pattern could see the price rally toward the $4.31 level. A break above that level may open the way for an upward move to $4.76. A further rally above $4.71 could take the price to $5.67 in the near future.

The price action on the daily chart has formed a clear inverse head and shoulders pattern. This is a common technical pattern used by analysts to predict an upward move after a downtrend.

The neckline of the pattern is located at the $3.68 and $3.87 levels, which previously acted as strong resistance. That level has already been broken to the upside and the price is now approaching the retest zone at $3.68 and $3.87.

According to technical analysis, a breakout from the pattern could see the price rally toward the $4.31 level. A break above that level may open the way for an upward move to $4.76. A further rally above $4.71 could take the price to $5.67 in the near future.

Funding Rate Trends Reinforce Bullish Market Sentiment

Coinglass funding rates data confirms the bullish trend present in the market. Positive OI-weighted funding rates have remained positive during May so far. A majority of investors are taking long positions.

Positive funding and rising prices indicate that investors are holding to their bullish positions. Participants are increasingly relying on leverage to support gains in the

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