Sui has experienced prolonged bearish pressure after the SEC decided to prolong its decision on its spot ETF.
Sui (SUI) was down 4% on Thursday, compounding its earlier losses this week to 14%. Despite somewhat recovering this week, the token is still under pressure as weak sentiment plagues its entire ecosystem.
The most recent blow for Sui came in the form of an unfavorable decision by the U.S. Securities and Exchange Commission. On June 4, the SEC delayed its decision on the Canary Capital’s spot SUI ETF, triggering renewed uncertainty.
This brought Sui down near its weekly lows, to the $3.06 level, which it saw during the May 30 flash crash. At the time. At the time, Sui was down 20% in 24 hours, as unprecedented selling volume negated its brief rally above $4.
Cetus Protocol hack still weighs on Sui price
The $4 rally was negated due to lingering negative sentiment from the Cetus Protocol hack. On May 22, the core Sui-based protocol was exploited for an estimated $223 million. The hack had a significant effect on the Sui token, due to its central role in its ecosystem.
Cetus Protocol enabled token swaps and yield farming for than 62,000 active users. At the same time, the protocol generated over $7.15 million in daily trading fees. However, the team’s reaction to the hack had even more significant negative effects.
In response to the hack, Sui validators agreed to freeze hacker wallets. However, while this reaction helped mitigate the effects of the hack on users, it also caused significant concerns. Notably, traders started questioning whether or not Sui is truly decentralized.
Compounding these lingering pressures is the rest of the crypto market, which was under pressure last week. Major tokens, like Solana, Dogecoin, Cardano, and Shiba Inu, also saw double-digit losses over the past seven days.
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