SUI, the blockchain platform known for its fast transaction speeds and scalability, has recently experienced a significant surge in user activity, despite a notable decline in its price. Over the last 24 hours, key metrics such as new wallets and active addresses have spiked, signaling potential positive momentum for the altcoin. However, the effect of these changes on SUI’s price remains fresh and unclear. Let’s dive into the details of this surge, its causes, and how it might impact SUI’s price in the short term.

Surge in Active Wallets and Addresses

Over the past few days, SUI has witnessed impressive growth in user engagement. Active addresses on the network rose by a staggering 110%, reaching 1.5 million. This surge in activity suggests an increasing demand for the token, indicating a growing interest in SUI from both new and returning users. In particular, there were 1.2 million new wallets created, while 243,500 were returning addresses.

The influx of new wallets is an encouraging sign of increased investor participation. New wallet creation typically indicates that a larger number of users are entering the market, which could mean higher demand for the token in the future. Given that most of these new wallets are also displaying bullish sentiment, it suggests that these users are more likely to hold their positions for the long term rather than engaging in quick trading. This, combined with the recent uptick in SUI’s weighted sentiment, points to a generally positive outlook from investors.

Positive Market Sentiment

The increase in active addresses has coincided with a surge in SUI’s weighted sentiment, which has reached its highest levels since September 2024. Weighted sentiment reflects the overall market mood, with a positive sentiment indicating that most users view the network optimistically. This shift in sentiment aligns with the growing number of new wallets and the rising number of addresses actively engaged in the network, suggesting a bullish market outlook for SUI.

Moreover, the funding rate and open interest (OI) weighted metrics have also turned positive. This is a clear indication that investors are now favoring long positions, willing to pay a premium for the token. Previously, these metrics had remained negative for a brief period, but this recent reversal suggests that market sentiment is shifting from bearish to bullish. This sentiment shift could pave the way for a price rally, assuming the market continues to react positively to SUI’s fundamentals.

SUI Price Performance

Despite the recent surge in user activity and positive sentiment, SUI’s price has struggled in recent weeks. The altcoin has experienced a 10.07% decline on the weekly chart and a 26.14% drop on the monthly chart. At the time of writing, SUI is trading at $2.55, after a 9.8% fall on the daily chart.

However, the increase in active users and wallets may help reverse this price trend. If the demand from these new addresses continues to build, SUI could reclaim the $2.8 mark and potentially move toward $3. On the other hand, if selling pressure continues, SUI may face another price retrace, with potential support at the $2.4 level.

Conclusion

SUI’s recent surge in user activity, including the creation of new wallets and the increase in active addresses, reflects a growing interest in the altcoin. Coupled with the shift in market sentiment from bearish to bullish, this could pave the way for a potential price recovery. However, the path ahead is not without challenges, as the market still shows signs of selling pressure. If the positive sentiment continues to build, SUI may see a rally toward $3. If the selling persists, a further retrace to $2.4 could be in store. The coming days will be crucial in determining whether SUI can turn these positive on-chain metrics into a sustained price uptrend.