Introduction BitMorpho Daily News & Fundamentals: SUI Edition Saturday, December 6, 2025 Welcome to your Saturday briefing from BitMorpho, where we cut through the noise to deliver the core fundamentals driving the Sui ($SUI) ecosystem and the broader crypto landscape. While global macro indicators paint a mixed picture heading into the weekend, the underlying infrastructure and institutional momentum for Sui remain compelling, suggesting strong protocol-level performance is increasingly outweighing short-term market jitters. On the on-chain front, the narrative of raw performance continues to define Sui. Recent analysis highlights that the network is sustaining throughput between 5,000 and 8,000 transactions per second (TPS) with an exceptional 99.99% uptime, placing it directly alongside Solana in terms of raw production capability. Crucially, despite this matching performance, the market is still valuing SUI at only a fraction roughly 0.3x of Solana’s market cap. This valuation gap suggests the market may not have fully priced in the advantage of non-EVM architectures that can scale effectively under real load, a key fundamental differentiator. Furthermore, recent reports indicate the Total Value Locked (TVL) in the Sui ecosystem has shown a remarkable recovery, climbing back above 2 billion. The institutional tailwinds that began last week are compounding the fundamental story. Following the launch of the first 2x Leveraged SUI ETF (TXXS) on Nasdaq by 21Shares, we've seen analyst confirmation of strong ecosystem bounce-back, with some noting $SUI has rallied over 36% from its recent low. Adding significant weight to this trend, Grayscale has reportedly filed to launch its own Spot SUI ETF, which would track the actual token price, signaling deepening institutional confidence in Sui's long-term viability. However, the technical supply side cannot be ignored. December began with a significant SUI token unlock, releasing over 64 million tokens, which tested the network's ability to absorb new supply without volatility. It appears the ecosystem's strong on-chain activity and the aforementioned institutional inflows may have provided the necessary absorption buffer, setting the stage for what some analysts are calling a "new higher low" following a classic liquidity sweep earlier this month. Stay tuned as we break down the week's macro context and its potential impact on risk-on assets like SUI next. News Analysis BitMorpho Daily News & Fundamentals: SUI Edition Saturday, December 6, 2025 Welcome to your Saturday briefing from BitMorpho, where we cut through the noise to deliver the core fundamentals driving the Sui ($SUI) ecosystem and the broader crypto landscape. While global macro indicators paint a mixed picture heading into the weekend, the underlying infrastructure and institutional momentum for Sui remain compelling, suggesting strong protocol-level performance is increasingly outweighing short-term market jitters. Institutional Race Heats Up with Grayscale Spot ETF Filing The institutional narrative surrounding Sui has reached a fever pitch this week. Following the launch of the first 2x Leveraged SUI ETF (TXXS) on Nasdaq by 21Shares, major asset managers are clearly signaling their commitment to regulated SUI access. The most significant development is the reported filing by Grayscale to launch its own Spot SUI ETF, tentatively named the "Grayscale Sui Trust," which would track the actual token price, as opposed to using derivatives. This move, coming just days after the 21Shares leveraged product debut, underscores a deepening institutional conviction in Sui's long-term viability and growing investor appetite for direct exposure. The proposed Grayscale product would offer investors a regulated, familiar way to gain exposure to the Sui ecosystem without the need for direct token custody. This institutional influx, coupled with the earlier partnership between 21Shares and the Sui network for product co-development, cements Sui's position as a key asset in the evolving digital asset ETF landscape. On-Chain Activity Absorbs Supply Surge Despite the significant SUI token unlock earlier in the month, which released over 64 million tokens, the network has demonstrated remarkable resilience. This supply absorption appears to be successfully managed by robust on-chain activity and the aforementioned institutional inflows. Supporting this positive trend, Total Value Locked (TVL) in the Sui ecosystem has shown a healthy recovery, climbing back above the 2 billion threshold, with some reports indicating a recent peak near $2.6 billion driven by DeFi protocols like Suilend and Navi. [cite: Introduction, 10] Furthermore, network usage has been exceptionally strong, with daily transactions spiking from 8 million to approximately 15.1 million between November 29th and December 1st, signaling rising adoption across Sui applications. Adding further color to this fundamental strength, recent data suggests whale behavior indicates growing interest in spot prices, as CryptoQuant’s Spot Average Order Size chart showed clusters of large orders suggesting accumulation attempts from bigger players. This suggests that large holders may be positioning themselves after the recent liquidity sweep and the successful absorption of the December token unlock. Ecosystem Builders Continue to Deliver While the immediate market focus has been on structured products, the underlying builders in the Sui ecosystem continue to advance core technology. Projects focused on decentralized storage for the AI era, such as Walrus, are reinforcing the network’s infrastructure capabilities. Walrus, which enables decentralized storage for massive AI models and datasets, has recently highlighted a partnership with Talus Labs, further cementing the necessary infrastructure for decentralized AI agents to run efficiently on-chain. Similarly, key DeFi platforms like SuiLend (Send) continue to solidify the DeFi layer, boasting a substantial portion of the ecosystem's TVL and benefiting from Sui's inherent low-fee, high-throughput architecture. These continuous, organic developments suggest that the market valuation gap between Sui and other high-performance chains may narrow as real-world load and utility continue to validate the non-EVM architecture. In summary, the technical foundation of Sui remains strong, indicated by high TPS and uptime. This fundamental strength is now being actively recognized by the institutional sector, evidenced by the dual ETF filings and the positive market reaction to the recent 2x leveraged product. Whale accumulation and improving TVL suggest that conviction is building from both retail and institutional vantage points, setting a potentially strong base for Q1 2026. Outlook Conclusion: Sui's Foundation Solidifies Amidst Institutional Clamor The picture for Sui ($SUI) heading into this weekend remains decisively positive at the fundamental level, even as broader market sentiment wavers. The key takeaway from this week is the unprecedented institutional validation Sui has received. Grayscale’s reported filing for a Spot SUI ETF, following the launch of the 21Shares leveraged product, signals a powerful, established conviction in the asset’s long-term value proposition. This institutional embrace is proving to be a crucial counterbalance, effectively absorbing the increased supply from the recent token unlock without sparking significant on-chain panic. The network's underlying resilience, driven by robust usage and now regulatory-backed investment vehicles, suggests that protocol-level strength is becoming the dominant driver of investor perception. For the next 24-48 hours, investors should closely monitor the market reaction to the Grayscale news specifically, whether this anticipation translates into sustained accumulation volume or if the broader weekend market psychology prevails. Furthermore, keeping an eye on daily transaction volumes and active addresses will confirm if the on-chain absorption trend continues to outpace the lingering effects of the token unlock. Sui appears well-positioned to capitalize on this mounting institutional interest as the structure for regulated access rapidly matures. *Disclaimer: This report is for informational purposes only and does not constitute financial, investment, or trading advice. Always conduct your own thorough research.*