Grayscale Launches Sui Trust With $12.88M AUM, Can This Propel SUI Amid 12% Price Dip?

Grayscale Investments has introduced the Sui Trust, managing $12.88 million in assets as of December 18, 2024, giving qualified investors institutional-grade exposure to SUI. Despite this milestone, SUI’s price has fallen 12% to $4.13, while trading volume soared by nearly 109% to $3.1 billion.

Grayscale Sui Trust Opens Institutional Access

Accredited investors who meet the requirements can now invest in Grayscale Sui Trust, as stated in a recent X announcement. The third-generation blockchain, SUI, prioritizes scalability and transaction cost efficiency; the trust streamlines the process of becoming exposed to it.

The Grayscale Sui Trust has $12.88 million in assets under management as of December 18, 2024, with a share price of $65.52. Once all fees and expenses have been accounted for, the trust's shares will reflect the SUI price. Investors now have an easier option than buying and storing the token directly.

In addition, the Grayscale Sui Trust follows the price of SUI, which has increased by more than 500% thus far in 2024. Peer-to-peer transactions can be recorded on a public ledger using SUI's decentralized blockchain network. Because of this expansion, SUI is now the ninth biggest blockchain in the DeFi ecosystem in terms of total value locked (TVL).

SUI's DeFi TVL Faces Significant Challenges

Still, there are obstacles. From a high of 730 million in September, the latest data shows that SUI DeFi TVL has dropped to 385 million SUI. The dollar-denominated rise of TVL has continued despite this drop in SUI, mainly because the price of SUI has been going up.

But developer engagement on the SUI network has dropped. The level of developer engagement, as measured by commit activity, has decreased from 5,300 in May 2023 to 950 in December. From an annual high of 86, the number of active core developers has dropped to 44.

Encouraging Trends Persist Despite Market Shifts

Regardless, there are encouraging developments in the SUI Trust ecosystem. Over $377 million worth of stablecoins have been traded on the network. Strong transaction volumes are being reported by decentralized exchanges including Cetus, Bluefin, and DeepBook, which indicates that user demand has not subsided.

A major step toward delivering SUI to institutions has been the release of Grayscale Sui Trust. Although there are still obstacles, the establishment of the trust could increase interest in the SUI ecosystem, which could impact the price trends of SUI.

The price of SUI has fallen 12% in the last 24 hours to $4.13, even though Grayscale Sui Trust's launch was announced, Coingape points out. With a 108.96% increase to $3.1 billion in trading volume, the market capitalization is now $12.09 billion.

Grayscale Expands Its Litecoin Holdings

Grayscale Investments, meanwhile, has increased its holdings of Litecoin (LTC) by taking advantage of the current price slump. According to CoinGlass data, Grayscale added 2,230 LTC to its 30-day collection of more than 41,100 coins on Thursday. More than $220 million is the current worth of the company's Litecoin holdings.