TL;DR
- Grayscale Investments has launched the Grayscale Sui Trust, providing institutional-grade access to the SUI token without direct ownership.
- The trust, managing $12.88 million in assets, offers a simplified route for investors to participate in the SUI ecosystem, with shares tracking the SUI price minus fees and expenses.
- Despite the launch, SUI’s price dropped 12% over the past 24 hours, with market capitalization at $12.09 billion and trading volume surging 108.96% to $3.1 billion.
Grayscale Investments has announced the launch of the Grayscale Sui Trust, providing qualified investors with a streamlined method to gain exposure to the SUI token. This new trust is designed to offer institutional-grade access to the SUI ecosystem without the need for direct ownership of the digital asset.
The launch comes at a time when the cryptocurrency market is witnessing significant interest in third-generation blockchains focused on scalability and transaction cost efficiency.
Details of the Trust
The Grayscale Sui Trust, which manages assets worth $12.88 million as of December 18, 2024, offers a simplified route for investors to participate in the SUI ecosystem. The trust shares track the SUI price minus fees and expenses, providing a convenient alternative to directly purchasing and storing the token.
With a net asset value of $65.52 per share, the trust reflects the SUI price, which has surged by over 500% this year. SUI functions on a decentralized blockchain system, allowing for peer-to-peer transactions that are documented on a public ledger.
This growth has elevated SUI to the ninth-largest blockchain by TVL in its DeFi ecosystem. Even with obstacles like a decrease in developer engagement and a fall in SUI DeFi TVL from a high of 730 million to 385 million, the dollar-based TVL has continued to grow, primarily driven by the increasing price of SUI.
Market Impact and Future Prospects
The launch of the Grayscale Sui Trust marks an important step in offering institutional-level access to SUI. However, the news has had a varied effect on the SUI price.
Despite the major announcement, SUI’s price has dropped 12% over the past 24 hours to $4.13. Market capitalization is currently at $12.09 billion, with trading volume experiencing a remarkable increase of 108.96%, reaching $3.1 billion.
The developer activity on the SUI network has also decreased. Commit activity fell to 950 in December, down from a high of 5,300 in May 2023. Additionally, the number of active core developers dropped from a yearly peak of 86 to 44.
The SUI Trust ecosystem is showing good signs despite facing challenges. The volume of stablecoins on the network has now surpassed $377 million. Decentralized exchanges like Cetus, Bluefin, and DeepBook are seeing high transaction volumes, indicating ongoing user interest.
