Phantom will end support for the Sui blockchain on September 24, giving its users only a few weeks to move their $SUI and removing a platform that served as a gateway to one of the most talked-about Layer 1 networks of 2025.

The Sui Foundation noted that when Phantom first added support for Sui, the wallet claimed 15 million monthly active users.

The announcement lands as Sui's market standing has deteriorated. Data from DefiLlama shows the total value locked on the blockchain at $470.38 million, with $SUI trading around $0.83 and the coin's total market capitalization near $3.4 billion. That marks a steep decline from the more than $2 billion in TVL recorded when Phantom introduced Sui, and an even greater distance from the all-time high of $5.36 reached in January 2025.

Two paths before the transition date

Phantom is offering holders two options, both laid out on a company help page.

The first is to stay in Phantom and convert. Users can turn $SUI into wrapped $SUI on Solana, and Phantom will not charge its own fee for this cross-chain conversion until the transition date. Fees imposed by the network and the exchange still apply, and no additional fees will be charged for swaps into SOL, ETH, or USDC.

The second option is to keep holding Sui. Users can locate their recovery phrase in Settings and use that same phrase to access another wallet that supports the network. Phantom recommends Slush, the preferred wallet of the Sui Foundation, and says the same address and balances should be reflected automatically.

Under either route, users remain in control of their assets. Phantom emphasizes that the currencies are held on the Sui blockchain itself rather than stored in the wallet, meaning users can retrieve them later using the same "login" without facing any deadline.

Phantom also cautions that it will never contact users first or request a seed phrase, and that any offer of help with the migration should be treated as fraudulent.

From launch hype to an early exit

The shutdown brings a high-profile collaboration to a close. Phantom launched Sui on January 29, 2025, making it the fourth Layer 1 supported by the wallet, alongside Solana, Bitcoin, and Ethereum, as well as Coinbase's Layer 2 Base.

The Sui Foundation hailed the addition as the arrival of "the only Move-based chain and the third Layer 1 fully supported on the platform," while Phantom CEO Brandon Millman said Sui's "focus on scalability and its superior user experience aligns perfectly with Phantom's goal of making crypto accessible for everyone."

The market response was muted even at the time. When the integration went live, $SUI fell more than 4% on the day and had already lost over 20% across the previous ten sessions, Cryptopolitan reported.

The two parties now describe the split as mutual and say they may "explore other collaborations in the future," according to Phantom's post on X.

A wallet trimming chains, not just Sui

Sui is not the only network Phantom is cutting. A separate help page says the wallet will end Monad support on August 26 using nearly identical migration steps, suggesting Phantom is streamlining its multichain lineup rather than responding solely to Sui.

That fits a wider industry trend. A March 2026 Bank for International Settlements working paper argued that permissionless blockchains continue to fragment the market, as new low-fee chains draw users away from incumbents and weaken the network effects that can give individual chains lasting value. For a major chain such as Sui, losing access to a widely adopted wallet reduces one of the main consumer entry points into the ecosystem, even as the chain's on-chain activity has already cooled.

What's next for the Sui network?

The question now is whether other multichain wallets follow Phantom's example or move in to capture the Sui users Phantom has directed elsewhere.

Sui is not simply collapsing. The ecosystem continued to attract infrastructure development in August: Para announced native Sui support on August 12, highlighting Sui's growing stablecoin and payment activity. That contrast makes the Phantom exit notable — a major consumer wallet is pulling back even as other infrastructure providers keep building on Sui.