The self-custodial wallet Suiet is shutting down, with API services ending after Nov. 14. The closure marks another service withdrawal from the Sui ecosystem, which has experienced a sharp contraction in DeFi activity.
Sui's total value locked across DeFi protocols stands at approximately $413 million as of Wednesday, down 22 percent over the past month. Daily active users averaged about 128,000 in October, a 79 percent decrease from 601,000 in November 2025, according to Token Terminal.
Other wallet providers have exited Sui as well. The Sui-based hardware wallet Suiball announced closure on Nov. 10, and Phantom ended Sui support in September. Earlier this year, the DeFi project Full Sail shut down following a security incident involving Switchboard that resulted in approximately $91,000 in user losses.
Kadan Stadelmann, former chief technology officer of Komodo Platform, attributed Sui's challenges to economics rather than technical flaws. Expensive engineering costs combined with low user volume make operating on Sui unprofitable for wallet providers, he said. Multi-chain wallets face expanded attack surfaces, and Sui's architecture adds capital expenses that vendors can avoid by focusing on less complex chains.
Transaction volume on Sui rose to 324 million in October from 101 million in November 2025, but Stadelmann cautioned that higher transaction counts do not reflect rising unique users.
Sui has also contended with network reliability issues. Four outages in 2026 produced a combined 22 hours of downtime. One January disruption lasted six hours, while three occurred May 28 and 29, attributed by the Sui Foundation to software bugs introduced in a network update. By contrast, Solana has operated without a network-wide outage since February 2024.
