Phantom, a widely used multichain crypto wallet, will discontinue support for the Sui blockchain on September 24, 2026, giving users several weeks to transfer their SUI holdings before the deadline. This move comes amid declining metrics for the Sui network, which had once been hailed as a promising Layer 1 blockchain contender in the sector.
Declining Sui performance and Phantom’s exit
When Phantom first integrated Sui, the Sui Foundation stated the wallet had approximately 15 million monthly active users. However, Sui’s recent on-chain performance signals a significant downturn. Data from DeFiLlama shows that Sui’s total value locked (TVL) now stands at $470.38 million, with SUI trading around $0.83 and a market capitalization near $3.4 billion.
This marks a sharp decline from previous highs. Sui’s TVL peaked above $2 billion shortly after Phantom announced support, and SUI reached an all-time high of $5.36 in January 2025. The drop in TVL and market cap reflects broader challenges within Sui’s DeFi ecosystem during 2026.
| Metric | Peak (early 2026) | July 2026 |
|---|---|---|
| Sui DeFi TVL | ~$2 billion | <$1 billion |
| SUI price | $5.36 (Jan 2025) | $0.83 |
| Phantom support | Active | Ending Sept. 24, 2026 |
User options and asset migration
Phantom is offering users two main options for managing their SUI before support ends. Customers can either convert their SUI to wrapped SUI on Solana, with Phantom waiving its own conversion fee until the cutoff date, or export their recovery phrase and migrate funds to an alternative wallet with Sui network support. The wallet recommends Slush, the preferred solution of the Sui Foundation, which allows users to retain both addresses and balances seamlessly.
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AAPLPhantom emphasizes that assets reside on the blockchain, not within the wallet itself, so users will be able to recover funds even after the transition. The company also reminds users it will never proactively request a seed phrase, warning that any such approaches should be considered fraudulent.
Phantom states users can “convert SUI into wrapped SUI on Solana” without extra fees charged by Phantom itself prior to the transition deadline. The company assures users that “currencies are kept on the Sui blockchain, not stored in the wallet,” so recovery remains possible with the same login details.
Mini dictionary: Slush — A digital crypto wallet that supports the Sui blockchain, recommended by the Sui Foundation as an alternative for users migrating from Phantom.
Short-lived partnership and industry trends
Phantom added Sui support on January 29, 2025, listing it as the fourth major Layer 1 network alongside Solana, Bitcoin, and Ethereum. Sui is a Layer 1 blockchain built with the Move programming language and was launched by Mysten Labs. Initially, Sui Foundation described Sui as the only Move-based chain and the third native Layer 1 supported by Phantom.
Phantom CEO Brandon Millman previously commented that Sui’s scalability and user experience aligned with Phantom’s mission to make crypto accessible. Despite initial excitement, market response to the integration remained subdued. Upon the rollout of Sui support, SUI fell more than 4% in a day and over 20% in the preceding ten sessions.
The companies now describe the decision to end support as mutual and suggest possible future collaborations as Sui’s ecosystem continues to shift.
The Sui Foundation highlighted Sui’s unique position as a Move-based Layer 1, while Phantom’s leadership noted their shared commitment to accessibility. Both groups now state the separation was a joint decision and future collaborations remain on the table.
Phantom trimming multichain support
Phantom’s decision does not single out Sui. The company confirmed it will also remove support for Monad, another blockchain, on August 26, indicating a broader streamlining of network integrations. The transition steps recommended for Monad holders are similar to those for Sui users, supporting the theory that Phantom is refining its multichain service rather than reacting solely to Sui’s market activity.
This development reflects ongoing shifts in the crypto sector, where competition among permissionless blockchains has led to greater market fragmentation and diluted network effects. A Bank for International Settlements report published in March 2026 points to this increasing fragmentation, as low-fee protocols lure users away from established chains.
For Sui, losing access to a large wallet like Phantom underscores the user experience and accessibility challenges facing newer Layer 1 networks. While some infrastructure projects continue to develop on Sui, overall on-chain activity has slowed throughout 2026.
It remains unclear if other multichain wallets will follow suit or instead move to capture the migrating Sui user base. The Sui ecosystem has continued to see some infrastructure expansions in August, but Phantom’s withdrawal marks a significant change in end-user access.
