Sui crypto price recoils as Bitcoin dominance signals capital flight

Sui crypto price took a steeper hit than major peers, dropping nearly 5% as traders cashed in on recent gains. With Bitcoin dominance climbing and altcoin volume shrinking, the pullback reveals fading risk appetite in a jittery market.

On August 5, Sui (SUI) lost 4.71%, falling from a daily high of $3.61 to exchange hands at $3.39 at the time of writing, crypto.news data shows. The decline outpaced both the broader crypto market’s 1.57% dip and modest sub-3% losses from Ethereum (ETH) and Solana (SOL), a divergence that underscores altcoin vulnerability when Bitcoin strengthens.

The move capped a week of mounting pressure that began with a $162 million token unlock on August 1, Sui’s largest to date. With over tens of millions of new tokens entering circulation, selling pressure built steadily, compounding losses already sparked by macro headwinds and altcoin fatigue.

SUI has now shed over 20% since peaking near $4.40 earlier this month, erasing roughly $3 billion in market capitalization. Notably, open interest in SUI futures fell 15% in late July, signaling that traders were already unwinding risk before the unlock hit. That left SUI exposed, particularly as broader sentiment shifted toward capital preservation.

The bigger picture: A flight to safety?

This isn’t just about Sui. Bitcoin’s dominance hit 61.4% for the first time since last week as geopolitical tensions and stronger-than-expected U.S. economic data pushed investors toward perceived stability. SUI’s 24-hour trading volume fell 6.8% to $1.15 billion, while Bitcoin’s surged 8.2%, painting a clear picture: risk appetite is cooling.

The divergence underscores a broader capital rotation underway, one that favors liquidity, predictability, and perceived safety over mid-cap tokens navigating volatile supply dynamics.

The reaction wasn’t isolated. Altcoins across the board have lagged as Bitcoin asserts itself once again as crypto’s liquidity anchor. But in SUI’s case, the selloff cut through bullish on-chain signals.

According to DefiLlama data, Sui’s total value locked remains near $2 billion, and network activity has stayed robust. Even institutional signals have been strong: AMINA Bank became the first regulated entity to offer custody and trading for SUI on August 5, while Mill City Ventures announced a $450 million SUI-backed treasury.

Yet price action suggests that fundamentals alone are no longer enough to buoy short-term valuations in a market increasingly shaped by macro narratives, supply shocks, and defensive positioning.