Sui’s TVL Growth Soars Above $1.75B Mark Following Influx of Stablecoin Liquidity and Bitcoin Activity Which Bolstered DeFi Momentum
Sui, the layer-1 blockchain, is quickly rising the ladder when it comes to operating in the decentralized finance (DeFi) field, as it has surpassed $1.75 billion in total value locked (TVL), as tracked on DeFiLlama. This growth has helped Sui to enter the top 10 blockchains by TVL, now placed on 8th position after pipping Aptos, Cardano and Polygon.
With the foundation of a new Move programming language, Sui has shifted from an underdog to a key player in the DeFi race. The explosive growth has been due to several factors which include the adoption of asset-backed Bitcoin and the high influx of stablecoin liquidity.
The Surge in Asset Backed Bitcoin and Stablecoins
It’s no secret that a large portion (around 10%) of Sui’s TVL is made up of Bitcoin derivatives like wBTC, LBTC and stBTC. This is a good sign as it puts Sui closer to capturing the interest of some Bitcoin liquidity. Moreover, the over 1 billion dollars worth of circulating stablecoins across Sui based DeFi protocols marks a big milestone for increasing liquidity across the network.
This increases the overall capital efficiency but at the same time broadens the scope of institutional and retail investors who are looking for low volatility but stable yield investment.
SUI Token and Market Sentiment
The growth mentioned above has also been fueled by Sui’s native token, SUI. The token recently boomed in price, marking an all-time high whilst the broader market was on a rally, before cooling off to approximately 3.20. Even with the norm, SUI is still performing markedly better on a year-to-date basis.
Industry commentators have observed Sui making progress over the past months. In October of 2024, the founder of Cardano, Charles Hoskinson, praised the project, alleging that it is, “a stronger alternative to Solana,” and lauding the architecture of the project.
ETF Speculation and Ecosystem Optimism
Adding to the bullish sentiment are the rumors of the potential approval of a spot ETF for the SUI token. Although the rumors are not substantiated, if proven to be the case, it could serve a long way towards paving the path of acceptance, solidifying Sui’s standing amongst other highly recognized blockchain networks.
If the current trend of movement continues the same way, Sui is apparently set to surpass its previous $2 billion TVL mark and fortify its standing as one of the most versatile DeFi ecosystems.
Ethena (ENA) Eyes $1 Target Amid Coinbase Listing, RWA Expansion
At the same time Ethena’s native token (ENA) is displaying signs of a potential breakout, under strong support from technicals and with the boost of upcoming listing on Coinbase and new partnerships in the RWA space.
As of June 4, ENA was trading at 0.34 which is more than a 36% increase from its annual low. Although it remains nearly 77% below its all-time high, the ecosystem fundamentals are improving and interest from investors is rising.
Key Drivers: Upcoming Coinbase Listing and RWA Chain Launch
Strategically, what helps ENA the most is its upcoming listing on Coinbase—the biggest crypto exchange in the U.S. The token has been noted on the roadmap at Coinbase which lead to a 10% jump when the announcement was made.
Also, boosting Ethena Labs’ partnership with Securitize, a major infrastructure provider of RWA, adds momentum. The two plan to launch a dedicated RWA blockchain, Converge, that will release its mainnet somewhere near the end of this quarter.
Strong DeFi Activity and Resilience to Unlocks
The price of the token remained flat even after the unlock of 41 million ENA tokens on June 1st, valued over 12 million dollars. A drop of only 1% indicates that the market is resilient and there is demand for the token.
Ethena is expanding its DeFi footprint led by the yield-bearing stablecoin, USDe, which almost touched its 6.2 billion dollars ATH as its current TVL nears 5.8 billion dollars. It is now the forth largest stablecoin in the world with over 709,000 wallets earning 8% annual yields through network arbitrage.
With the launch of EtherealDEX – a decentralized exchange based on sUSDe that saw success during the testnet phase – Ethena’s ecosystem is about to expand considerably. The platform is expected to fully launch later this year.
ENA Price Technicals: Bullish Signals Emerge
From a technical outlook, ENA has managed to break above the multi-month descending trendline, which is now serving as support, a signal to consider buying. Concurrently, the token is also close to breaching the upper boundary of a descending triangle which could trigger a bullish reversal.
A double bottom formation is present as well which tends to be quite a reliable sign of trend shifts. In this case further price action, if ENA manages to close above the 20-day exponential moving average, the momentum would shift in the shorter timeframe.
The next resistance is 0.51, which aligns with the 23.6% Fibonacci retracement and the apex of the double bottom pattern.
Alternatively, if ENA falls below the 0.25 support it would likely retrace to the $0.20 region, historically known as a strong lower bound as well as the lower end of the current range.
Conclusion
Both Sui and Ethena are progressing rapidly on the DeFi front. Sui’s skyrocketing Total Value Locked (TVL) and liquidity milestones, alongside Ethena’s technical development and strategic initiatives are likely to catalyze the ENA token to new peaks. With innovation and agnostic attention from other sectors, both these projects have a favorable chance to dictate the next phase of DeFi evolution.
