Phantom ends Sui Network support as TVL falls 82% – Has SUI become a dead chain?
Sui holders retain their assets, but Phantom’s exit adds pressure as network activity and liquidity decline.
Phantom, a self-custody digital wallet, plans to end its support for the Sui Network on the 24th of September. This development will change how users access their assets.
From that date onwards, users will no longer be able to view, send, swap, or connect their Sui [SUI] assets to applications using Phantom’s wallet.
The user’s Sui assets will still exist within the Sui network. Therefore, Phantom’s removal does not move any token from the user or transfer any ownership of the tokens. Instead, users must change the software through which they control those assets.
Generally, Phantom’s departure removes one distribution channel for Sui applications and places migration decisions on users.
Although the blockchain itself remains operational, users will have limited options for accessing their assets due to reliance upon Phantom.
Phantom exit splits Sui user flows
Since funds remain on-chain, Phantom’s exit shifts attention from asset safety toward the choices holders must make.
When support ends, SUI holders will have two options regarding their tokens. On one hand, they may choose to continue holding SUI. Upon this choice, users may export their credentials to another compatible wallet in order to restore access to their applications and balance.
On the other hand, those who choose to stay in Phantom may exchange for other tokens such as wrapped SUI, Solana [SOL], Ethereum [ETH] or USD Coin [USDC].
Since Phantom’s fee waiver applies only to wrapped SUI, this route offers a direct cost advantage over other routes, even when fees are assessed externally.
The migration process retains both users and capital on the Sui Network, while conversion processes both transfer them to the supported networks.
Is Sui becoming a dead chain?
Beyond the immediate wallet changes, Phantom’s exit adds to concerns about Sui’s declining network activity. As a result, those concerns have grown as the altcoin’s TVL fell from $2.576 billion in October 2025 to $468.59 million at press time.
This decline accounts for a whopping 82% contraction, erasing roughly $2.11 billion. Despite some episodes of rebounds, the token repeatedly failed to reclaim $1 billion status.
Although Phantom has withdrawn from the Sui network, this adds to the concerns of potential users. As a result of the withdrawal, it will eliminate a significant entry point on the network at a time when the network is already experiencing a slowdown.
Therefore, dead-chain comparisons remain premature, but continued losses across users, liquidity, and applications would strengthen them.
Final Summary
- Phantom wallet set to seize Sui [SUI] support on 24 September, though assets remain accessible through compatible wallets using the same credentials.
- Sui’s TVL fell 82% to $468.59 million as Phantom removed a major wallet access channel.
