The Layer 1 blockchain Sui (SUI) is capturing attention with a powerful surge in July, gaining 44% and pushing its price toward the critical $4 resistance level. This rally isn’t happening in isolation—it coincides with Sui’s decentralised finance (DeFi) ecosystem achieving a record-breaking Total Value Locked (TVL) of $2.219 billion.
Driven by intensifying institutional usage, an expanding user base, and radical technical innovation, Sui is not simply riding on the back of the broader crypto economy; it is way ahead of such powerhouses as Ethereum and poised to break through with a powerful new SUI price breakthrough, potentially.
Analysts point to a potent mix of on-chain momentum and bullish technical indicators suggesting the $4 barrier may soon crumble, potentially unlocking a path toward its all-time high near $5.36.
Record TVL and DeFi Surge Signal Robust Fundamentals
The major driver of Sui is an explosive growth in its DeFi ecosystem. The SUI TVL which has rocketed to an all time high of 2.219 billion is an 8.74 percent increase in 24hours and an unbelievable 480 percent increase in a short time validating the inflow of large capitals and new user adoption.
This isn’t merely speculative; it reflects tangible utility and engagement. Protocols like NAVI, Cetus, and the institutional-focused DeepBook central limit order book are driving real activity, contributing to a 42% monthly jump in fee generation to $42,000—double Ethereum’s growth rate in the same period.
This SUI DeFi power is also reinforced by the smart integration of other projects, such as tBTC by Threshold Network, which allows the activation of more than half a billion dollars in Bitcoin liquidity on Sui. Assets built using BTC now make up over 10 percent of Sui TVL, boosting generation potential and establishing it as a potential substantial DeFi player on both retail and institutional levels.
Technicals Align for Potential Breakout Toward $5
The technical setup for SUI increasingly suggests a powerful bullish continuation is brewing. After a decisive breakout above a resistance trendline connecting May and June highs, the price has consolidated constructively near the psychologically significant $4 level.
A daily close above $4 is widely viewed by analysts as the critical trigger for the next major leg up, initially targeting the 78.6% Fibonacci retracement level near $4.20 and ultimately the all-time high of $5.36. Supporting this SUI forecast are strongly bullish momentum indicators: the Money Flow Index (MFI) at 78 signals intense capital inflow, while the Stochastic RSI points to sustained buying pressure even in overbought territory.
Critically, derivatives markets echo this optimism: Open Interest (OI) surged 19.10% to $1.73 billion, funding rates remain positive, and over $8 million in short positions were liquidated in 24 hours—signs of overwhelming trader conviction in further upside. This confluence of technical and derivatives data paints a compelling picture of a token coiled for a major move.
Ecosystem Growth and Long-Term Value Proposition
Beyond immediate price action and TVL, Sui’s long-term value proposition is being cemented by rapid, diverse ecosystem expansion. Projects across DeFi, gaming, NFTs, and infrastructure are flourishing. Bluefin ($BLUE), the third-largest DEX on Sui by TVL, exemplifies this growth, processing over $1 billion in perpetual volume in June alone despite its token remaining potentially undervalued. Novel entrants like DoubleUp ($UP), blending provably fair gambling with DeFi, demonstrate Sui’s capacity to foster innovative use cases, having already recorded $188 million in transactions. Furthermore, core infrastructure developments led by Mysten Labs—such as Walrus (decentralized storage offering 80% cost savings) and zkLogins (simplifying user onboarding via Google/Twitch)—are strategically reducing friction for mass adoption. This vibrant application layer, combined with Sui’s inherent technological advantages like parallel processing and the Move language, provides a robust foundation.
While token unlocks, like the recent $122 million release, introduce potential volatility, they also supply essential liquidity for continued ecosystem scaling. Grayscale’s analysis underscores Sui’s unique position: founded by Diem veterans with deep expertise and backed by a vertically integrated strategy targeting real-world usability at scale
Conclusion: A Pivotal Moment at the $4 Threshold
Sui stands at a pivotal juncture. The convergence of its record-breaking SUI TVL, a technically bullish setup eyeing the $4 breakout, and an ecosystem demonstrating real traction and innovation creates a compelling investment thesis. While short-term resistance at $4 is significant and overbought signals warrant caution, the fundamental drivers—institutional inflows via Bluefin, deep Bitcoin integration through tBTC, and Mysten Labs’ relentless product development—suggest the momentum is sustainable. A confirmed daily close above $4 would significantly de-risk the trade and open a clear technical path toward $4.20 and potentially the $5.36 all-time high.
 rallies 44% in July as its DeFi TVL hits $2.2B. With strong on-chain momentum and bullish technicals, analysts predict a breakout past $4 and a run toward $5.36.){kind=link}