According to reports from Phantom, the wallet service will terminate support for the Sui network on September 24, 2026, removing all in-app functionality for Sui assets. The transition affects balances, transactions, swaps, and application access through Phantom's interface. However, Sui assets will remain onchain and accessible through compatible wallets using existing recovery credentials after the deadline. As reported by ChainCatcher, Phantom and Sui have decided to stop support on September 24, 2026, and reserve future exploration of cooperation possibilities. The withdrawal comes less than 20 months after introducing native Sui support in January 2025, reversing an expansion that made Sui the first blockchain based on the Move programming language supported by Phantom. According to AMBCrypto, Phantom's exit removes one distribution channel for Sui applications and places migration decisions on users, with the departure adding pressure as network activity and liquidity decline.
The SUI token has experienced significant volatility, rising 45% in under three days to nearly reach the $1 round-number resistance before facing selling pressure over the weekend. As reported by AMBCrypto, the buyers were unable to defend a key support zone at $0.80, with this failure to hold the support level indicating changing sentiment toward SUI. The token was still above the 50-day moving average at $0.72, though the Chaikin Money Flow (CMF) was at +0.05, signaling buying pressure despite the short-term correction. The $0.80 supply zone was highlighted as an important resistance for bulls to overcome, which the previous week's rally managed to achieve but was subsequently lost. The combination of Phantom's exit and the broader network decline suggests that Sui may have become a dead chain for practical purposes, despite the blockchain's technical functionality remaining intact.
As reported by Phantom, users have two migration paths available. Those who want to retain native Sui assets can import their Phantom recovery phrase into a compatible wallet, with Slush recommended as the preferred alternative. Alternatively, users can swap Sui assets into tokens on supported networks such as SOL, ETH, and USDC before the deadline. Phantom has temporarily waived its fee for cross chain swaps from native SUI into wrapped SUI on Solana until September 24, though network and exchange fees still apply. According to AMBCrypto, the migration process retains both users and capital on the Sui Network, while conversion processes both transfer them to the supported networks. Since Phantom's fee waiver applies only to wrapped SUI, this route offers a direct cost advantage over other routes, even when fees are assessed externally.
Despite the bearish short-term structure, AMBCrypto reports that the 2-hour timeframe's price action was seeing a bullish reaction from the $0.70-$0.75 golden pocket, suggesting potential for short-term recovery. However, traders and investors shouldn't bet on a recovery, as considerable buying pressure is needed to take SUI crypto above the $0.80 and $1 supply zones. The analysis indicates that a bounce could offer an opportunity to take profits, instead of convincing market participants to go long. The prevalent swing structure on the 1-day chart remained bearish, with the combination of Phantom's exit and network activity decline creating additional headwinds for the token's recovery prospects.
As reported by Phantom, the company has warned against migration scams, emphasizing that it will never contact users first, request a recovery phrase, or offer to move assets on their behalf. The warning addresses potential phishing campaigns that often emerge during wallet transitions, with scammers potentially imitating support accounts or distributing fake wallet applications. Users should obtain replacement wallets through official websites and confirm domains independently before entering recovery phrases. According to ChainCatcher, users should be aware of potential scams during the migration process and verify all communications through official channels.
