Suiet, a non-custodial wallet on the Sui blockchain, has announced that it will stop updating and supporting its wallet, as well as discontinue its API services after November 14. The closure comes amid a sharp decline in DeFi activity on the Sui network.
According to data from DefiLlama, Sui’s total value locked on Wednesday was about $413 million, down more than 22% over the past month. Token Terminal data shows that in October, Sui averaged about 128,000 active users per day, compared with 601,000 in November 2025 — a drop of roughly 79%.
Meanwhile, other recent shutdowns have also raised concerns about the costs and difficulties of keeping projects running on the Sui network.
“Sui’s problems appear to be primarily economic in nature, driven by high design costs and low user volumes rather than protocol failures,” said Kadan Stadelmann, former chief technology officer of Komodo Platform. “No flaws have been found in the core design of the system.”
Recent shutdowns
The Suiet shutdown came right after the November 10 announcement that the Sui-based Suiball hardware wallet project would be shutting down. Meanwhile, wallet provider Phantom ended support for Sui in September.
The Full Sail DeFi project was also shut down following a security incident involving Switchboard that caused losses of about $91,000.
Despite the decline in active users, transaction counts on Sui have increased, reaching 324 million in October compared with 101 million in November 2025, according to Token Terminal. However, according to Stadelmann, an increase in transaction counts does not necessarily mean an increase in users, and wallet providers still have to decide whether the cost of supporting the network is justified.
“Multi-chain wallets have a vast attack surface, and Sui’s approach increases costs for providers who may move their business to less capital-intensive chains,” he said. “Any individual multichain wallet failure is more a reflection of the risks than an indictment of any specific protocol.”
A string of outages
According to reports published by the Sui Foundation, the network also experienced four outages in 2026, resulting in a total of roughly 22 hours of downtime.
In January, the network stopped processing transactions for about six hours, followed by three more outages on May 28 and 29. According to the Sui Foundation, the May outages were related to software bugs, including issues that arose after a network update.
By comparison, competing blockchain network Solana has not recorded any network outages since February 2024, when it went down for nearly five hours. Meanwhile, Aptos, which uses the same underlying smart contract programming language as Sui, last reported a mainnet outage in October 2023.
Network outages matter because they can prevent DeFi users from trading, transferring funds, or managing positions, although the Sui Foundation said user funds were not at risk during the May outages.
