The Sui (SUI) cryptocurrency made a notable recovery on September 24, 2026, climbing back towards the critical $1 mark after an earlier sell-off pushed its value down to approximately $0.94. This rebound coincided with Phantom wallet officially withdrawing support for the Sui network, a move first announced in August.
Phantom’s cessation of service for Sui users means a significant shift in how many interact with their SUI assets. While the price action shows resilience, the long-term impact on the Sui ecosystem hinges on user migration to alternative wallets.
Phantom wallet officially ends Sui support
Phantom, a widely used non-custodial cryptocurrency wallet, officially ceased its support for the Sui network on September 24, 2026. This development was a culmination of an announcement made back in August.
The transition means that users can no longer view, send, swap, or interact with their Sui assets directly through the Phantom interface. This immediate change impacts a considerable segment of the Sui user base who relied on the popular wallet.
User Assets Remain Secure
Despite Phantom’s withdrawal, it’s crucial for users to understand that their SUI tokens remain secure on the blockchain. Phantom is a self-custodial wallet, meaning it never holds user funds directly.
Users can still access their SUI tokens by importing their recovery details, such as a seed phrase, into another compatible wallet. Phantom itself recommended Slush, a wallet backed by the Sui Foundation, as a viable alternative for continued network access.
SUI Price Recovers, Faces Key Resistance
The SUI token briefly dropped to about the $0.94 price level before staging a recovery to roughly $0.99. At the time of reporting, the altcoin was up 3.25%, indicating renewed buying interest despite the wallet service disruption.
However, the price currently hovers just below the $1 level, a point that has historically seen increased selling pressure. For buyers to gain control, SUI must decisively move past this psychological barrier and maintain its position above it.
Another area presenting a significant challenge for the altcoin market dynamics is the $1.03 price area. A sustained break above this could pave the way for SUI to target the $1.08 level, signaling stronger upward momentum.
The $0.94 price point now serves as an important immediate support level. A drop below this could see SUI retreating towards the $0.90 mark. Should selling pressure intensify further, the $0.85-$0.86 range could become the next zone of interest for traders.
Why Phantom Withdrew Support for Sui
Phantom’s decision to end support for Sui, initially integrated in January 2025, wasn’t without a broader context. While the wallet did not cite specific technical or commercial reasons, industry reports indicate a significant decline in Sui’s DeFi Total Value Locked (TVL).
Sui’s TVL plummeted by an alarming 82%, from its peak of approximately $2.58 billion in October 2025 to around $469 million by August 2026. This substantial reduction in ecosystem activity likely played a role in Phantom’s strategic review.
Some analysts suggest this move is part of Phantom’s larger strategy to optimize its multichain offerings. The wallet reportedly aims to prioritize resources for blockchains with higher transaction volumes and user engagement, such as Solana and Ethereum, which remain core to its business. Phantom had previously shown its commitment to broadening crypto services to other chains, so this retrenchment marks a strategic shift.
Implications for the Sui Ecosystem
The withdrawal of a prominent wallet like Phantom presents both challenges and opportunities for the Sui ecosystem. While existing users must now transition to new wallets, the underlying technology and assets remain intact.
The Sui Foundation, established in October 2022, continues its mission to support and strengthen the network, promoting its adoption and empowering developers. While the Sui Foundation backs wallets like Slush, it was Phantom that recommended Slush as a viable alternative to streamline the transition process for affected users.
Navigating Wallet Migration
For individuals holding SUI tokens, migrating from Phantom involves a straightforward process. Users simply need to download a new compatible wallet and import their existing recovery details.
This action restores access to their funds and allows continued interaction with the Sui blockchain and its decentralized applications (dApps). Understanding how to mitigate crypto theft through secure key management is always paramount during such transitions.
The Road Ahead for Sui
The recent price recovery demonstrates some underlying strength in SUI despite the external pressure from Phantom’s exit. However, the token still faces a crucial battle at the $1 threshold, which needs to be overcome for sustained bullish momentum.
The broader effect of Phantom’s withdrawal will become clearer in the coming weeks. The key question remains whether a significant portion of affected users will seamlessly migrate to other Sui-compatible wallets or if this event will lead to a net outflow from the ecosystem.
Sui’s ability to attract new users and developers, coupled with its technical advancements in throughput and low fees through the Move language, will be vital in navigating this transition. The focus will now shift to other wallet providers and the Sui Foundation to ensure a robust and accessible user experience moving forward.