Here’s Why the SUI Price Is Falling Despite Strong Activity on the Network

SUI seems to be experiencing tough times recently. In the past 20 days, there has been a fall of about 37% in the token’s value and has even fallen below the significant level of $0.89. On the surface, one would think that users must have left the network. But no, that’s not what is happening.

In fact, the Sui blockchain is still processing a huge amount of transactions. The real issue is that investors are worried about reliability after the network suffered three separate outages in less than 48 hours.

What Happened to the Sui Network?

The trouble started between May 28 and May 30 when Sui experienced three mainnet halts in quick succession. The problem was linked to the network’s v1.72 upgrade. A new Address Balances feature conflicted with Sui’s gas-charging system during an Epoch Transition, causing block production to stop temporarily.

The network team was able to identify the issue and validators rolled out fixes by May 30. Operation was restored in a matter of hours, and fortunately, there have been no losses on users’ balances during the downtime. Nevertheless, traders did not remain silent about this news.

This incident led to the closure of positions in the amount of approximately $2 million and lowered the SUI token price below crucial support lines. More than that, this is far from being the first major incident for Sui this year. 

This particular issue is yet another in the series of outages in 2026, making one wonder whether future upgrades can go without incidents. For a blockchain claiming its performance to be at the highest level suitable for fintech and gaming apps, it is equally important to ensure its reliability and stability.

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The Strange Part: Network Activity Remains Strong

What’s making this situation interesting is that network usage hasn’t slowed down. We had a look at the on-chain data shared by CryptoPatel, and Sui continues to process a large number of Shared Object Transactions. 

Source: X/@cryptopatel

These are the more complex transactions used by DeFi applications, NFT marketplaces, blockchain games, and other interactive platforms. Transaction activity frequently reached between 50 and 100 certificates per second, with peaks moving above 100 Cert/sec during periods of high demand.

That’s impressive throughput by any standard. At the same time, Owned Object Transactions stayed relatively low, mostly below 5 Cert/sec. This tells us that most of the network’s activity is coming from applications that require heavy interaction rather than simple token transfers.

It has also managed to process 1,539 transactions per second, indicating that the technology can still process high volumes of transactions. Hence, despite the declining price of SUI, the actual use of the platform remains impressive.

Institutional Adoption Keeps Moving Forward

The weakness in the SUI price has also overshadowed some positive developments happening behind the scenes. Institutional access to Sui continues to expand. The 21Shares Spot SUI ETF has been trading on Nasdaq since February 2026, giving traditional investors a regulated way to gain exposure to the asset. 

CME Group also launched SUI futures on May 29, opening another door for institutional participation. The ecosystem has also introduced USDsui, its native stablecoin. Since launching in March 2026, the stablecoin has created a mechanism that can generate SUI buybacks as adoption grows.

These are the types of developments that typically help strengthen the investment case for a blockchain network. The problem is that right now, traders seem more focused on network stability than institutional adoption.

What’s Next for the SUI Price?

Right now, the SUI price is being pulled in two different directions. On the one hand, there are problems like outages, liquidations, and concerns about the overall reliability of the network. On the other hand, there is high transaction volume, greater access for institutions, increasing adoption of stablecoins on Sui, and even an ambitious development roadmap that foresees gasless transfers of stablecoins and other improvements.

At the moment, the question of network reliability seems to be more relevant than anything else for investors. If the developers of Sui manage to show that the recently discovered bugs have been fully fixed and the network works flawlessly in the coming weeks, then the focus can shift back to usage numbers and ecosystem growth. 

FAQs

How much transaction activity is Sui handling

The network has processed high throughput levels, including peaks above 100 Cert/sec and around 1,539 TPS overall.

Do network upgrades affect crypto prices

Yes, upgrades can impact price positively or negatively depending on whether they improve reliability, security, or introduce risks.

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The post Here’s Why the SUI Price Is Falling Despite Strong Activity on the Network appeared first on CaptainAltcoin.