Suiet, a self-custodial wallet built for the Sui blockchain, is shutting down adding to a series of service withdrawals that highlight growing economic and operational pressures across the ecosystem.

The wallet will stop development and maintenance with API services ending after November 14, 2026.

The exits come as Sui struggles to retain users and DeFi capital.

Its

  • total value locked (TVL) has fallen more than 22% over the past month to approximately $413 million, while

  • average daily active users dropped 79% to 128,000 in October from 601,000 in November 2025,

according to DefiLlama and Token Terminal data.

 

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Suiet’s departure follows

  • hardware wallet project Suiball’s closure on November 10 2026,

  • Phantom’s withdrawal of Sui support in September 2026, and

  • DeFi project Full Sail’s shutdown following a security incident that resulted in approximately $91,000 in losses.

 

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The problem may extend beyond declining activity.

 

Kadan Stadelmann, former CTO of Komodo Platform, told reporters that Sui’s challenges are largely economic citing expensive engineering requirements and insufficient user volumes to sustain service providers.

Sui has also experienced four network outages in 2026 resulting in approximately 22 hours of combined downtime raising additional concerns about infrastructure reliability.

Despite the decline in active users, Sui processed 324 million transactions in October 2026, up from 101 million in November 2025. However, higher transaction counts have not translated into comparable growth in users or DeFi capital.

The departures highlight a broader challenge for blockchain ecosystems where sustaining the infrastructure, security, and engineering costs required to support an expanding network when user activity and commercial returns are insufficient.

 

 

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