Sui Network fixes the staking reward issue today, SUI price recovers after a 6.8% drop, and trading volume surges 25%.
Sui Network has declared that the correction for its staking reward distribution issue will be implemented at 17:30 UTC on October 27, 2024, in conjunction with the commencement of epoch 564. A flaw was initiated during the transition to a new epoch on October 24 that impeded the distribution of staking rewards for epochs 560, 561, 562, and 563. This was the beginning of the issue.
Despite this interruption, the network emphasized that no funds or previously earned rewards were lost. Moreover, the resumption of regular operations may result in a resurgence of investor confidence, which could result in a positive shift in the SUI price and an increase in stake activity.
Sui Network Plans Staking Fix: Will SUI Price Recover?
On October 24, the delivery of staking incentives was impacted by an issue with the epoch switch on the Sui Network. The error affected the reward distribution of four epochs: 560, 561, 562, and 563. Nevertheless, the network was eager to emphasize that no rewards or staked funds were lost during this period. This correction will be implemented at 17:30 UTC on October 27, coinciding with the commencement of epoch 564.
Sui Network has recommended that users refrain from unstaking until the new epoch commences to guarantee that they receive the delayed rewards. Rewards that would have been accrued during the affected epochs may be forfeited by users who unstake their tokens before the repair. This suggestion will guarantee a seamless return to standard operations.
The Sui network issued a tweet, which read,
“Please be advised that the implemented fix will now go live with epoch 564 on Sunday, October 27 at 10:30am PT. Sui users should avoid unstaking until epoch 564 has begun.
Network operations are not affected. The distribution of rewards from epochs 560, 561, 562, and 563 will be postponed until epoch 564, but no staking rewards or funds have been lost.
SUI Responds to Staking Disruption
The price of SUI experienced a substantial decline after the disruption of the staking reward. The token’s value plummeted by 6.80%, reaching a low of $1.70. The market experienced a decline in response to the news of the interrupted reward distribution. The network price has experienced fluctuations since then, recovering marginally to $1.79, but it continues to be under pressure.
The staking issue was concurrent with a broader market decline, which exacerbated the obstacles that SUI encountered. The adverse sentiment, influenced by technical indicators, persisted despite the increased trading activity.
Nevertheless, analysts anticipate the issue will be resolved by October 27, resulting in a price recovery by restoring investor confidence. Restoring pledging mechanisms will recover some of the value lost over the past week.
Furthermore, the 1-hour chart of the SUI price is currently at $1.79, with a modest bullish momentum, representing a 0.69% increase. The MACD indicator implies a prospective uptrend, as the MACD line is above the signal line, indicating a positive crossover. Before a potential breach in either direction, the price has consolidated with small candlesticks, suggesting low volatility.
However, despite the SUI price decline, the Sui Network experienced a substantial increase in trading activity, with volume reaching $691 million, a 25% increase. Despite the obstacles presented by the staking issue, the spike suggests substantial market interest in SUI. Investors anticipate a price rebound to $3 following the return to normal operations as they are positioning themselves before the scheduled repair.