SKN | Suiet Wallet to Shut Down as More Projects Exit the Sui Ecosystem

Key Points

• Suiet will discontinue wallet updates and support, with its API services scheduled to end after November 14.

• Sui’s decentralized finance total value locked fell more than 22% over the past month, while daily active users declined approximately 79% year over year.

• Recent project closures, wallet withdrawals and network outages have raised questions about the economic sustainability and operational challenges facing the ecosystem.

Suiet Announces Wallet Shutdown

The Sui blockchain ecosystem is facing another project departure as self-custodial cryptocurrency wallet Suiet prepares to discontinue its services.

In a shutdown notice, Suiet said it would stop updating and supporting its wallet, while its API services would remain operational through November 14. The decision adds to a series of closures and service withdrawals involving projects built on the Sui network.

The announcement comes amid declining decentralized finance activity. Sui’s total value locked (TVL) stood at approximately $413 million on Wednesday, representing a decline of more than 22% over the previous month, according to DefiLlama data.

User activity has also weakened. Token Terminal data showed that Sui averaged approximately 128,000 daily active users in October, compared with 601,000 in November 2025. That represents a decline of roughly 79% over the period.

The combination of reduced user activity and declining DeFi deposits raises questions about the commercial sustainability of applications and infrastructure providers operating within the ecosystem.

Multiple Projects Withdraw From Sui

Suiet’s announcement follows several other departures involving Sui-based products.

Hardware wallet project Suiball announced its closure on November 10, while wallet provider Phantom discontinued support for Sui in September.

DeFi protocol Full Sail also shut down following a security incident involving Switchboard that resulted in approximately $91,000 in losses.

These developments have drawn attention to the operating costs and technical requirements associated with maintaining blockchain services.

Kadan Stadelmann, former chief technology officer of Komodo Platform, told Cointelegraph that Sui’s challenges appeared primarily economic rather than the result of fundamental protocol weaknesses.

He pointed to expensive engineering requirements and relatively low user volumes, adding that no flaw in the network’s core design had been identified.

Stadelmann also noted that transaction growth does not necessarily translate into greater adoption or commercial activity.

Transaction Growth Contrasts With Declining Users

Despite the decline in active users, Sui recorded an increase in transaction volume.

According to Token Terminal, the network processed approximately 324 million transactions in October, compared with 101 million in November 2025.

The divergence between transaction growth and user activity suggests that higher network usage does not necessarily indicate a broader expansion of its user base.

For wallet providers, the decision to maintain support involves more than transaction volume. Engineering expenses, security requirements and the financial resources needed to support multiple blockchain networks also influence whether continued integration is commercially viable.

Stadelmann said multi-chain wallets face extensive security risks and additional development costs, making it possible for providers to prioritize networks that require fewer resources to maintain.

He cautioned against interpreting individual wallet failures as evidence of fundamental problems with a particular blockchain protocol.

Network Outages Add to Ecosystem Concerns

Sui has also experienced several network disruptions during 2026.

Reports published by the Sui Foundation indicate that four outages resulted in approximately 22 hours of combined downtime. The network stopped processing transactions for around six hours in January, followed by three additional disruptions on May 28 and 29.

The May incidents were attributed to software bugs, including problems introduced through a network update. The foundation said at the time that user funds were not at risk.

Network availability is particularly important for decentralized finance applications, where interruptions can prevent users from trading, transferring assets or managing financial positions.

By comparison, Solana has not experienced a network-wide outage since February 2024, when the blockchain went offline for nearly five hours. Aptos, which shares the Move smart contract programming language with Sui, last reported a mainnet outage in October 2023.

Sustainability Becomes a Central Question

Suiet’s departure adds another development to a difficult period for the Sui ecosystem. Declining DeFi deposits and active users, combined with project closures and network disruptions, create challenges for businesses that depend on sustained network activity.

However, rising transaction volumes indicate that activity across the network has not declined uniformly.

The coming months will provide a clearer picture of whether Sui can attract new users, retain infrastructure providers and improve operational reliability. For the ecosystem, maintaining developer participation and commercially sustainable services will be important as competition among blockchain networks continues.