Crypto wallet Phantom has announced it will cease its support for the Sui blockchain on September 24, providing users with a window to transfer their assets. The decision comes as Sui experiences a significant decline in network activity and market metrics compared to its initial launch period in January 2025.
According to DefiLlama data, the total value locked (TVL) on the Sui blockchain has dropped to $470.38 million, down sharply from over $2 billion when Phantom first integrated the network. At the time of the announcement, the SUI token traded around $0.83 with a market capitalization near $3.4 billion, well below its January 2025 all-time high of $5.36.
User Options and Migration Details
Phantom has outlined two primary options for holders affected by the discontinuation. Users can choose to stay within the Phantom wallet and convert their SUI into wrapped SUI on Solana, with Phantom waiving its own cross-chain conversion fee until the transition date. Alternatively, users can export their recovery phrase to access another supported wallet, with Phantom recommending Slush as the Sui Foundation's preferred wallet.
Phantom emphasized that digital assets reside on the Sui blockchain rather than within the wallet itself, meaning users can retrieve their funds later using their recovery phrase without losing access. The company also reminded users to exercise caution regarding security, noting that Phantom will never initiate contact or request a seed phrase.
A Shifting Multichain Strategy
The partnership's conclusion marks a swift shift from its high-profile launch on January 29, 2025, when Sui became the fourth Layer 1 network supported by Phantom. At the time, Phantom CEO Brandon Millman praised Sui's focus on scalability and user experience. Both entities now describe the split as mutual.
Sui is not the only network facing removal from the platform. Phantom also scheduled the end of Monad support for August 26, indicating a broader trimming of the wallet's multichain lineup. Industry analysts point to broader fragmentation trends in the permissionless blockchain sector, where the proliferation of low-fee networks can pull users across platforms and strain network effects for individual chains.
