SUI Drops Below $1 Despite Launch of First U.S. Staking ETFs by Grayscale and Canary

The introduction of U.S.-listed staking ETFs for SUI was anticipated to boost the cryptocurrency's performance. However, SUI's price declined below $1 despite the launch of these institutional-backed products. Grayscale and Canary Capital initiated spot staking ETFs, offering investors exposure to SUI and staking rewards. These ETFs allow investors to earn yield passively through on-chain staking. Despite this regulatory milestone, SUI's price continued its downward trend, losing significant value. Market data indicates trader caution, with declining open interest and trading volumes. SUI's DeFi ecosystem's total value locked has also decreased. Technical analysis suggests SUI consolidates near key support levels, with further potential losses. An upcoming token unlock could introduce more selling pressure. Ultimately, SUI's recovery depends on broader market forces, liquidity, and network growth.