Phantom Discontinues Support for Sui as Network Struggles to Recover

On September 24, Phantom will discontinue support for the Sui blockchain, giving its clients a few weeks to transfer their $SUI funds and winding down the platform that allowed users to access one of the most talked-about layer-one solutions of 2025. As reported by the Sui Foundation, when Phantom first began supporting Sui, the wallet boasted 15 million monthly active users.

This announcement comes amid a significant price drop for Sui compared to its past. According to data from DefiLlama, the total value locked (TVL) in the blockchain is $470.38 million, while the price of $SUI hovers around $0.83, and the token's total market capitalization approaches $3.4 billion. This marks a significant decline from the over $2 billion TVL at the time of Phantom's launch of Sui support and from the all-time high of $5.36 recorded in January 2025.

Two Ways to Avoid Consequences Before the Cutoff Date

Phantom is offering its holders two options, both detailed on the company's help page.

The first option is to stay on Phantom and convert. Users can convert $SUI to wrapped $SUI on Solana, and Phantom will not charge its own fee for this cross-chain conversion until the cutoff date. Network and exchange fees remain applicable, and there will be no additional swap fees for exchanging into SOL, ETH, or USDC.

The alternative is to keep the Sui tokens. Users can find their recovery phrase in settings and use the same phrase to access another wallet that supports the network. The Phantom wallet recommends Slush as the Sui Foundation's preferred wallet and indicates that the same address and balance should appear.

In either case, users remain in control of their assets. Phantom emphasizes that the currencies are stored on the Sui blockchain, not within the wallet itself. Users will be able to access them later using the same "login" without worrying about any deadlines. Additionally, Phantom informs users that it will never contact them first or ask for a seed phrase, and that any offers of help with migration should be treated as potential scams.

From Launch Hype to Early Exit

The termination of the partnership marks the end of a high-profile collaboration. Phantom launched Sui support on January 29, 2025, making it the fourth layer-1 wallet supported by Phantom; the others being Solana, Bitcoin, and Ethereum, as well as Coinbase's Layer 2, Base.

The Sui Foundation called it the arrival of "the only Move-based blockchain network and the third layer-one network fully supported on the platform," while Phantom CEO Brandon Millman stated that "Sui's focus on scalability and superior user experience aligns perfectly with Phantom's goal of making crypto accessible to everyone."

Market reaction was tepid even then. After the integration launched, $SUI fell more than 4% that same day and had already lost over 20% in the preceding ten trading sessions, Cryptopolitan reported. Now, both sides describe the termination as mutual and state they may "explore other collaboration opportunities in the future," according to a Phantom post on X.

A Wallet Trimming Chains, Not Just Sui

Sui is not the only network Phantom is cutting. A separate help page states that the wallet will discontinue support for Monad on August 26, using practically identical migration steps, suggesting Phantom is trimming its multi-chain lineup rather than reacting specifically to Sui.

This fits a broader industry trend. A March 2026 working paper from the Bank for International Settlements argued that permissionless blockchains continue to fragment the market, as new low-fee blockchains siphon users away from existing players and weaken the network effects that can give individual blockchains long-term value.

For a major network like Sui, losing access to a widely used wallet illustrates a retail-focused aspect of this fragmentation, where users have fewer entry points into the ecosystem, coinciding with already reduced on-chain activity.

What Lies Ahead for the Sui Network?

The question now is whether other multi-chain wallets will follow Phantom's lead or begin competing to attract Sui users that Phantom is directing elsewhere. For now, Circle includes Sui among the blockchains supported by its stablecoin infrastructure.