The Sui blockchain network recently experienced a surge in on-chain activity, leading to a significant increase in its decentralized exchange (DEX) trading volumes, reaching all-time highs. The price of Sui has displayed notable volatility this week, achieving a new peak on the charts.
As per the official X account of Sui network, the total DEX trading volume surpassed $35 billion, marking a new milestone. A peak daily trading volume of $466 million was also registered, setting a new daily record for the network.
The spike in DEX trading activity indicates a considerable demand for the SUI token, likely contributing to its bullish performance over the past two days.
SUI demonstrated a parabolic surge throughout November and the initial days of December. While it seemed to enter a phase of profit-taking and retracement earlier in the week, the scenario took a different turn. Mid-week resurgence in demand triggered a rally that drove the price to a new all-time high of $4.91, sparking optimism that it might soon breach the $5 threshold.
Despite the recent uptick, there were expectations of a pullback due to a bearish divergence between the price and the Relative Strength Index (RSI). However, it’s crucial to note that the recent surge was primarily fueled by revived spot demand.
Evaluating SUI’s Spot and Derivatives Trading Volumes
Wednesday witnessed spot inflows of around $13.67 million, with approximately $5.19 million inflows in the last 24 hours, significantly surpassing the early December figures.
The recent surge in spot transactions and the attainment of a new all-time high was supported by a $5.15 billion surge in token trading volume, as reported by DeFiLlama. This marked the second-largest volume surge observed in the history of the Sui network.
However, despite these positive trends, SUI’s Total Value Locked (TVL) has been on a downward trajectory, standing at $1.64 billion at the latest data point – indicating a possible withdrawal of liquidity by some holders.
The declining TVL aligns with the decreasing RSI, hinting at substantial profit-taking activity. These circumstances have elevated the risk of liquidations, particularly for short traders anticipating a price retracement.
Notably, SUI short liquidations reached $5.5 million in the past 24 hours as the price surged. This highlights the necessity of caution for traders, especially those considering highly leveraged positions.