According to Milk Road (@MilkRoadDaily), Cetus, a major decentralized exchange (DEX) on the Sui blockchain, suffered a significant exploit resulting in over $11 million drained from the SUI/USDC liquidity pool. This breach has triggered a rapid sell-off, with most SUI-based tokens plummeting 75% to 80% in value within hours of the incident. The security breach has led to heightened volatility and eroded trader confidence in the Sui ecosystem, causing SUI trading volumes to spike and liquidity to thin across multiple exchanges. Traders are advised to monitor SUI and related tokens closely, as further downside and contagion risks may impact broader DeFi and altcoin markets. Source: https://twitter.com/MilkRoadDaily/status/1925520489159827816

According to AltcoinGordon, SUI ecosystem meme coins have delivered significant short-term returns, with $LOFI up 3.5x in a few weeks and $SQUIRT gaining 50% in under a day (source: @AltcoinGordon, May 16, 2025). These rapid gains highlight strong speculative momentum in the SUI blockchain's meme coin sector, attracting active traders seeking high volatility and quick profits. The performance of $LOFI and $SQUIRT may signal increased trading volumes and liquidity for SUI-based tokens, with traders closely watching for the next potential breakout meme coin within the SUI ecosystem.