Meanwhile, other recent closures have also raised concerns about the costs and challenges of keeping projects running on the Sui network.
“Sui’s problems seem to mostly be of an economic nature resulting from expensive engineering costs and low user volume rather than protocol failures,” Kadan Stadelmann, former chief technology officer of Komodo Platform, told Cointelegraph. “No flaw in the system’s core design has been found.”
Cointelegraph reached out to the Sui Foundation and Suiet for comment but had not received responses by publication.
Recent closures and departures
Suiet’s shutdown immediately follows the Sui-based hardware wallet project Suiball also announcing its closure on Nov. 10. Meanwhile wallet provider Phantom ended support for Sui in September.
DeFi project Full Sail also shut down following a security incident involving Switchboard that caused about $91,000 in losses.
Despite the decline in active users, transactions on Sui have increased, reaching 324 million in October, up from 101 million in November 2025, according to Token Terminal. However, more transactions do not necessarily mean more users, and wallet providers must still decide whether supporting the network is worth the cost, according to Stadelmann.
“Multi-chain wallets have expansive attack surfaces, and Sui’s approach adds costs for vendors who can take their business to less capital intensive chains,” he said. “Any individual failure of a multi-chain wallet is more a reflection of the risks rather than an indictment of any given protocol.”
A series of outages
Sui has also experienced four network outages in 2026, resulting in around 22 hours of combined downtime, according to reports published by the Sui Foundation.
The network stopped processing transactions for about six hours in January, followed by three more outages on May 28 and 29. The May disruptions were linked to software bugs, including problems introduced by a network update, the Sui Foundation said at the time.
By comparison, rival blockchain Solana has not recorded a network-wide outage since February 2024, when it went offline for nearly five hours. Meanwhile, Aptos, which uses the same underlying smart contract programming language as Sui, last reported a mainnet outage in October 2023.
Network outages are significant because they can prevent DeFi users from trading, transferring funds or managing positions, although the Sui Foundation said no user funds were at risk during its May disruptions.