Suiet, a self-custodial wallet built for the Sui blockchain, will cease updating and supporting its wallet. Its API services will conclude after Nov. 14, adding to a series of project closures within the Sui ecosystem.

The shutdown coincides with a significant decline in decentralized finance activity on the Sui network. Sui's total value locked stood at approximately $413 million on Wednesday, representing a 22 percent decrease over the past month.

User engagement on the network has contracted sharply. Sui averaged about 128,000 daily active users in October, down from 601,000 in November 2025, marking a 79 percent reduction.

Suiet's closure is not isolated. The Sui-based hardware wallet project Suiball announced its shutdown on Nov. 10. Wallet provider Phantom ended support for Sui in September. The DeFi protocol Full Sail ceased operations after a security incident involving Switchboard, resulting in approximately $91,000 in losses.

Kadan Stadelmann, former chief technology officer of Komodo Platform, said Sui's challenges appear primarily economic, citing expensive engineering costs and low user volume rather than protocol failures. "No flaw in the system's core design has been found," Stadelmann said.

Despite the decline in active users, transactions on Sui increased. The network recorded 324 million transactions in October, up from 101 million in November 2025, though a higher transaction count does not necessarily indicate growth in unique users.

Stadelmann noted that multi-chain wallets contend with expansive attack surfaces. Sui's architectural approach adds costs for vendors, potentially prompting them to shift business to less capital-intensive chains. Any individual failure of a multi-chain wallet reflects general risks rather than an indictment of a specific protocol, he said.

The Sui network has experienced operational disruptions. In 2026, it recorded four network outages resulting in approximately 22 hours of combined downtime, according to the Sui Foundation. One outage in January stopped transaction processing for about six hours. Three additional disruptions occurred on May 28 and 29, with the Sui Foundation attributing the May incidents to software bugs introduced by a network update.