Suiet, a self-custodial wallet for the Sui blockchain, is shutting down with API services ending after Nov. 14. The closure follows hardware wallet Suiball announcing its shutdown on Nov. 10 and Phantom withdrawing Sui support in September.
Sui's DeFi total value locked stood at $413 million on Wednesday, down more than 22% over the past month, according to DefiLlama. Daily active users averaged 128,000 in October, down from 601,000 in November 2025 — a 79% drop, per Token Terminal. Transactions increased to 324 million in October from 101 million in November 2025. Former Komodo Platform CTO Kadan Stadelmann told Cointelegraph that Sui's problems appear economic, driven by expensive engineering costs and low user volume rather than protocol failures.
The gap between rising transaction volume and collapsing user count means activity likely comes from sources other than retail DeFi participation — a mix that does not support wallet business models. When three wallet providers exit in three months, they signal that user acquisition costs exceed expected revenue. The 22% TVL drop over a month shows capital leaving as infrastructure providers close.
Sui recorded four network outages in 2026, totaling approximately 22 hours of downtime. The network stopped processing transactions for six hours in January, followed by three outages on May 28 and 29, which the Sui Foundation attributed to software bugs including problems from a network update. Solana has not experienced a network-wide outage since February 2024; Aptos, which shares Sui's smart contract programming language, last reported a mainnet outage in October 2023.
Further wallet or DeFi project closures would confirm that the economic model has not stabilized. Reversal requires evidence of user growth returning or cost reductions for ecosystem participants.
Source: CoinTelegraph