Phantom ends Sui Network support as TVL falls 82% – Has SUI become a dead chain?

What happened

Phantom, a digital wallet, has ended support for the Sui Network, while Sui's total value locked (TVL), which is the amount of assets deposited in its apps, has fallen by 82%. Sui holders still keep their assets, but the exit adds pressure.

Confirmed

Global impact / market context

When a major wallet stops supporting a blockchain, it becomes harder for people to use it, which can reduce activity and make the network less attractive. This could lower demand for SUI tokens and hurt the network's revenue from transaction fees.

Analyst inference

The 82% drop in TVL suggests investors are pulling their assets out of Sui's apps, which means less cash available in the ecosystem. Combined with Phantom's exit, this may signal declining confidence and could pressure SUI's price further.

Analyst inference

What to watch

1. Watch whether other major wallets or platforms also decide to end support for Sui Network, as Phantom's exit is confirmed and could set a precedent for similar actions. Confirmed
2. Consider monitoring Sui's TVL over the coming weeks to see if the 82% decline continues or stabilizes, which would indicate whether the network is still losing assets. Proposed
3. Observe if Sui's development team announces new partnerships or upgrades to attract users back, as such moves could counter the negative pressure from Phantom's departure. Analyst inference

Affected assets

• SUI — Sui

Evidence

• ambcrypto.com