Phantom will cease support for the Sui blockchain on September 24, giving its customers a couple of weeks to transfer their SUI and eliminating a platform that let users enter one of the most talked-about Layer 1 networks of 2025. When Phantom first added Sui, the wallet reported 15 million active users every month, according to the Sui Foundation.

The announcement arrives as Sui's price sits far below its former levels. According to data from DefiLlama, the total value locked on the blockchain now stands at $470.38 million, while SUI trades at roughly $0.83 and the coin's overall market capitalization is near $3.4 billion. That represents a steep decline from the more than $2 billion in TVL at the time Phantom introduced Sui, and from the all-time high of $5.36 recorded in January 2025.

Two ways out before the transition date

Phantom is giving holders two options, both detailed on a company help page.

The first is to stay in Phantom and convert. Users can convert SUI into wrapped SUI on Solana, and Phantom is not charging its own fee for this cross-chain conversion until the transition date. Wrapped tokens of this kind represent an asset from one blockchain as a token on another, so holders keep exposure to SUI while staying inside the Phantom app. Fees charged by the network and exchange remain in effect, and there will be no additional fees for swaps into SOL, ETH, or USDC.

The alternative is to retain Sui. Users can find 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 notes that the same address and balances should be reflected automatically.

In either case, users remain in control of their assets. Phantom emphasizes that the currencies are kept on the Sui blockchain itself rather than stored in the wallet, meaning users can retrieve them later using the same “login” and without any deadline to worry about. Phantom also warns that it will never contact users first or request the seed phrase, and that any offers of help with the migration can be considered fraudulent.

From launch hype to an early exit

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

The Sui Foundation described the integration 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.”

Sui itself was built by Mysten Labs, a startup founded by former Meta engineers, and its Move programming language was originally developed for Meta's shelved Diem payments project.

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

The two sides 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 trimming its multichain lineup rather than reacting solely to Sui.

That fits a broader 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 pull 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 illustrates the retail-facing aspect of fragmentation: fewer places for users to enter the ecosystem, coinciding with an already diminished rate of on-chain activity.

What's next for the Sui network?

The open question is whether other multichain wallets will follow Phantom's example or move in to capture the Sui users that Phantom has diverted elsewhere. Circle, which launched native USDC on Sui in 2025, currently lists the chain among the blockchains supported by its stablecoin infrastructure.

Fun fact: You can still track @SuiNetwork wallet on @phantom — CoinStats (@CoinStats) August 24, 2026