- Sui Foundation is investing $30 million in DATA Network to bring its AI data registry and token onto the Sui blockchain.
- Despite the deal, SUI fell over 5%, putting the $1 support level at risk.
Sui Foundation is investing $30 million in DATA Network to bring its AI training-data registry and token onto the Sui blockchain. However, SUI price fell more than 5% following the announcement, putting the $1 support level at risk.
Sui Foundation Commits $30 Million to DATA Network
Sui Foundation has committed $30 million to DATA Network as part of an agreement to move the AI project’s infrastructure and token to Sui. The transition will also bring DATA Network’s applications and Trace registry onto the network.
DATA Network helps companies identify data used to train artificial intelligence models. Its technology also tracks the origin of that information and the conditions under which it can be used.
According to the Sui Foundation, Trace has recorded more than 250 million data contributions since its launch in June. The registry now processes over three million receipts daily.
As part of the agreement, Walrus, a decentralized data storage platform associated with Sui, will store information used by DATA Network’s applications.
The $30 million investment will make Sui DATA Network’s largest institutional investor. However, the announcement did not disclose the project’s valuation or the number of tokens acquired through the deal.
DATA Network Token Migration Details
The agreement will bring DATA Network’s independent blockchain to an end once the migration to Sui is complete. Its applications and token will operate on the Sui network instead.
Existing token holders are expected to receive their tokens on a one-to-one basis. This means holders should receive the same number of tokens on Sui as they currently own on the existing network.
The migration will not change locked token allocations or the existing token release schedule. DATA Network’s current blockchain is also expected to remain operational until the transition is completed.
However, Sui Foundation and DATA Network have yet to announce an exact migration date. Both parties said they would provide further details about the transition timeline before the switch takes place.
SUI Price Falls Despite the $30 Million AI Deal
Despite the announcement, SUI price dropped approximately 5.6%, trading above $1.07. The decline pushed the token below its short-term average near $1.09, indicating continued pressure on its near-term performance.
SUI remains above the levels recorded before its sharp September rally. However, trading activity has weakened since that advance, suggesting that buying demand has not returned with the same strength.
The $1 level is now a key area to watch. A break below this support could expose SUI to further losses toward $0.97, where two longer-term moving averages could provide additional support.
On the upside, SUI would need to reclaim $1.10 to improve its short-term outlook. A move higher could bring the $1.20 level into focus, an area where previous recovery attempts lost momentum.
Can the DATA Network Deal Support SUI’s Recovery?
The market’s immediate reaction suggests that the $30 million investment has not provided a strong short-term boost to SUI price. The token continued to decline despite the announcement of the AI infrastructure transition.
However, the deal could offer longer-term benefits if DATA Network’s applications bring sustained activity to Sui after the migration.
Moving an AI-focused data registry and its associated token onto Sui could expand the network’s ecosystem and increase its role in blockchain-based AI infrastructure.
For now, traders will be watching whether SUI can hold above $1 or fall toward the next support near $0.97. The eventual impact of the DATA Network deal will depend partly on the successful completion of the migration and the activity it generates on Sui.
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