Phantom prunes Sui and Monad, and the exit fee points to Solana

The DefiLlama figure quoted in the same report is $470.38 million ^[4]. Against the "over $2 billion" Sui carried when the integration went live, that is a fall of roughly 77 percent, well past the halving the summary language implies ^[15]. SUI at about $0.83 is some 85 percent below the $5.36 it printed in January 2025 ^[16]. The more useful comparison for a chain losing a retail on-ramp is price against usage: a market capitalisation near $3.4 billion sits about 7.2 times the value actually locked on the chain ^[17].

Wallet support is distribution, and the cheaper of the two exits Phantom offers points away from Sui. Until the cutoff, converting SUI into wrapped SUI on Solana carries no Phantom fee, and swaps into SOL, ETH or USDC carry no additional fee either, with network and exchange costs still applying ^[12]. The other route is to pull the recovery phrase out of Settings and open it in Slush, which Phantom names as the Sui Foundation's preferred wallet, with the same address and balances appearing automatically ^[13]. One option is free and ends with the asset represented on Solana; the other asks the user to set up a wallet they have never used. Fee design usually settles that.

Monad goes first, on August 26, 29 days ahead of Sui and by nearly identical steps ^[2][18]. No activity or value figures for Monad appear in the material, so the only factor the evidence actually shows the two chains sharing is a place on Phantom's list. That weakens the tidy reading in which weak metrics triggered the removal, and strengthens the duller one: the wallet decided a shorter chain list was worth maintaining.

The integration never bought Sui a bid in the first place. SUI fell more than 4 percent on the day it went live and had already lost over 20 percent across the previous ten sessions, Cryptopolitan reported at the time ^[10]. Phantom's chief executive Brandon Millman then said Sui's focus on scalability and its user experience aligned with the wallet's goal of making crypto accessible ^[9]. Both sides now describe the split as mutual and say they may explore other collaborations, according to Phantom's post on X ^[11]. The 15 million monthly users the Sui Foundation cited at launch ^[8] were shelf space, not flow, and shelf space is revocable.

A Bank for International Settlements working paper dated March 2026, cited in the same report, argues that permissionless chains keep fragmenting the market as new low-fee entrants pull users away from incumbents and erode the network effects that would otherwise make any single chain durable ^[14]. Read from the wallet's side, fragmentation is not an abstraction about network effects. It is a list of chains someone has to keep working, and two entries came off it.

One caveat on the record: the source dates the launch to January 29, 2025 ^[6] and gives the cutoff only as September 24, while citing a paper dated March 2026 ^[14], so the lifespan of the integration cannot be pinned down from the material ^[21].