Sui Wallet Suiet Shuts Down as Exits and Outages Stack Up

Suiet, a self-custody wallet built on the Sui blockchain, will shut down operations and discontinue its API service after Nov. 14, extending a run of service exits from an ecosystem losing users and deposited capital at a steep pace.

Cointelegraph reported on Nov. 11 that Suiet had announced it would end wallet updates and support, with the application programming interface wound down three days later. The closure makes Suiet the latest in a series of withdrawals from Sui rather than an isolated failure.

The ecosystem numbers explain the timing. DefiLlama data put Sui's total value locked at roughly $413 million, down more than 22% over the past month. Token Terminal data show average daily active users fell about 79% to roughly 128,000 in October, from about 601,000 in November 2025. A shrinking fee base leaves less revenue for the service providers that wallets and DeFi front-ends depend on.

Which services have already left Sui?

The exits span several categories of infrastructure:

• Suiball, a hardware wallet project, announced its shutdown on Nov. 10.
• Phantom, a major multichain wallet, ended support for Sui in September.
• Powsche, a DeFi project, ceased operations after losing about $91,000 in a Switchboard security incident.

Each departure compounds the problem. Fewer wallets and applications mean fewer on-ramps for users, which in turn pressures the economics of the services that remain.

Is the problem technical or economic?

Kadan Stadelmann, former chief technology officer at Komodo Platform, argued that Sui's difficulties look economic rather than rooted in protocol flaws. He cited high engineering costs and a small user base as the core pressures.

He added that multichain wallets carry many points of exposure to attacks, and that Sui's specific architecture raises operating costs for service providers. That cost structure matters when deposits and activity are falling at the same time: providers face more expense to integrate and maintain, with less revenue to cover it.

How unstable has the network been?

The network itself has contributed to the uncertainty. A Sui Foundation report counted four network outages this year, with cumulative downtime of about 22 hours.

The first disruption lasted roughly six hours in January. The network then suffered three more outages on May 28 and May 29, which the report attributed to a software bug introduced during a network update.

Repeated full-network outages are operationally distinct from a degraded application layer. They block transaction finality across every service built on the chain at once, and they give integrators a concrete reliability argument for spending their engineering budgets elsewhere.

What happens next?

Suiet's API service goes dark after Nov. 14, and any application still calling it will need to migrate or break. The wider question is whether TVL and active-user figures stabilize before more infrastructure providers recalculate the cost of staying on a chain that has now logged 22 hours of downtime in a single year.