Phantom Removes SUI Support – Is the Sui Network at Its End?

With the withdrawal of the Phantom wallet from the Sui network, whispers around the once-promising blockchain grow quieter. Just a few months ago, Sui was touted as a serious Ethereum competitor, but now it appears to be plummeting into a deep crisis. The network has lost over 82% of its Total Value Locked (TVL) — but what does this really mean? Is Sui already a “dead chain,” or is there more beneath the decline?
Phantom’s Exit: A Symbolic Moment
Phantom, the popular non-custodial wallet for Solana, Ethereum, and other EVM-compatible networks, recently announced it would no longer process transactions on Sui. The reasoning? “We have decided to discontinue support for Sui.” The statement sounds dismissive — yet there’s more to it. Behind the scenes, a combination of low user adoption, insufficient liquidity, and declining developer activity likely drove the decision.
And that’s no small issue. When established wallet providers like Phantom no longer consider a network relevant, it sends a warning signal. Sui was once hailed as an “Ethereum killer” thanks to its innovative Move programming language — but reality has painted a different picture.
The TVL Crash: A Downward Spiral with No End?
According to data from DefiLlama, Sui’s Total Value Locked (TVL) reached over $1 billion in May 2023. Today? Less than $180 million — a staggering drop of over 82%. By comparison, Solana, which also launched with high expectations, saw a decline of about 40% during the same period.
The reasons behind this dramatic fall are multifaceted:
1. Lack of useful DApps — Despite initial hype around projects like Cetus, KriyaDEX, or DeepBook, sustainable DeFi or NFT applications have failed to materialize.
2. Low developer activity — Santiment data reveals a sharp decline in daily code commits since launch.
3. Competition from other Layer-1 blockchains — Networks like Aptos, Sei, or even Ethereum Layer 2 solutions (Arbitrum, Optimism) are attracting both developers and users.
4. Unclear roadmap — Sui has struggled to present a clear vision beyond marketing. While competitors like P



olygon or Cosmos continuously announce new partnerships, Sui often appears directionless.
Are Sui Holders Still Safe?
Despite Phantom’s exit, the Sui network remains technically operational — users can still hold and manage their tokens via wallets like Sui Wallet, Martian, or Fewcha. However, liquidity is a major concern: without sufficient DeFi protocols and trading pairs, investors face growing difficulty in exiting their positions.
Some market observers even speculate whether Sui could face insolvency if TVL continues to decline and no new capital is injected. The Sui Foundation, which backs the project, still holds reserves from its initial token sale, but without a revival of community and developer engagement, the network risks spiraling further downward.
Can Sui Still Be Saved?
Theoretically, yes — but it would require urgent action:
- More DApps with real utility (not just copy-paste projects)
- A clear roadmap with concrete milestones
- Marketing that goes beyond hype (current campaigns often feel half-hearted)
- Partnerships with established players (e.g., institutions or major DeFi protocols)
And time is running out. While networks like Aptos (also built with Move) gain momentum, Sui increasingly resembles a project that missed its chance.
Conclusion: A Network Between Hope and Reality
Sui was once seen as a beacon of hope for a new generation of fast, scalable blockchains. But after Phantom’s withdrawal and the TVL crash, the question looms: Can Sui be saved, or is it destined to become another “dead chain”?
For investors, the situation remains uncertain. Those already holding SUI should monitor developments closely — without a reversal in liquidity and adoption, prices may continue to fall. For newcomers, an early entry could be risky as long as no real progress is in sight.
One thing is certain: the era of Sui hype is over. Whether the network gets a second chance will be decided in the coming months. Until then, it stands as a cautionary tale of how quickly blockchain projects can fade into obscurity — even with significant funding and PR.