Self-custodial cryptocurrency wallet Suiet has announced it will discontinue updating and supporting its wallet on the Sui blockchain, with its API services set to be decommissioned after November 14. The move adds to a growing series of closures and service withdrawals across the Sui ecosystem, amid falling activity and user numbers.
Sui ecosystem faces closures and user decline
Suiet confirmed in an official notice that all support for its services will end by mid-November. The wallet, designed specifically for the Sui network, has been widely used by DeFi participants seeking secure, self-managed asset storage. Its upcoming shutdown follows a period of shrinking engagement on the blockchain.
Data from DefiLlama showed that Sui’s total value locked (TVL) stood at approximately $413 million as of Wednesday, representing a drop of more than 22% over the previous month. On-chain analytics from Token Terminal indicated that daily active users averaged about 128,000 in October, significantly below the 601,000 reported in November 2025, marking a decrease of roughly 79% in less than a year.
The network has also seen a string of shutdowns by other projects. Sui-based hardware wallet provider Suiball disclosed its own closure announcement on November 10, and the multi-chain wallet Phantom ended support for Sui in September. DeFi project Full Sail also ceased operations following a security breach related to Switchboard, which resulted in approximately $91,000 in losses.
Costs and outages challenge network stability
Industry analysts have pointed to economic pressures as a primary factor behind the exit of projects from Sui. Kadan Stadelmann, former chief technology officer at Komodo Platform, indicated that expensive engineering requirements and low user engagement are major hurdles for Sui projects.
Sui’s ongoing challenges appear largely economic, tied to high development costs and limited user traffic, with no inherent protocol design flaws reported.
Despite the decline in active users, the volume of transactions on the network has actually increased. Token Terminal reported that Sui processed 324 million transactions in October, up from 101 million a year prior. However, analysts emphasized that a higher number of transactions does not necessarily translate to a proportional rise in users. Stadelmann noted that wallet providers must weigh whether supporting Sui remains financially sustainable, given the higher operational costs relative to other blockchains.
With Sui’s design increasing expenses for vendors, wallet operators may prefer directing resources to chains with lower capital requirements, making individual service exits more reflective of broader market risks than protocol weaknesses.
The Sui blockchain has also encountered technical reliability issues this year, as Sui Foundation reports detailed four separate outages in 2026 that led to about 22 hours of combined downtime. The network was offline for approximately six hours in January, followed by three outages on May 28 and 29, which Sui Foundation attributed to software bugs — including complications introduced by a network update. The organization maintained that no user funds were at risk during these incidents.
Competition and ecosystem impact
While Sui struggled with intermittent downtime, competitor blockchains have reported fewer disruptions. Solana, for example, has not experienced a network-wide outage since February 2024, when it was offline for nearly five hours. Aptos, another rival using the same core smart contract language as Sui, last reported a mainnet outage in October 2023.
Network outages remain a central concern for DeFi users, as interruptions halt trading and fund transfers, undermining confidence in decentralized platforms. Even though Sui Foundation stressed that user assets remained secure during the most recent downtime, the incidents have fueled broader apprehension about the blockchain’s reliability.
For users monitoring the implications of Suiet’s closure and the impact of increasing network activity despite falling engagement, platforms like CryptoAppsy can provide valuable support. With real-time charts and customizable price alerts, CryptoAppsy enables users to respond quickly to shifts in TVL, active users, and transaction spikes on Sui. This helps users stay ahead of ecosystem changes without relying on outdated information.
