Sei Network's V2 upgrade, featuring parallelized EVM, has spurred significant ecosystem growth, attracting Ethereum developers and boosting network activity.

Sei V2 Fuels Ecosystem Expansion

The Sei Network has experienced substantial growth following its V2 upgrade, which introduced a parallelized Ethereum Virtual Machine (EVM). This upgrade aims to combine the speed of integrated blockchains with the developer community of Ethereum, positioning Sei as a versatile platform for decentralized applications.

Technical Advancements and Performance

Sei V2 incorporates the Twin-Turbo consensus mechanism, enabling parallel processing of transactions and optimistic execution of orders, resulting in faster transaction finality, typically under 400ms. This architecture facilitates transaction speeds of up to 20,000 TPS (transactions per second). The upgrade also features dual VM support, including native CosmWasm support and a new EVM compatibility layer, offering developers flexibility and attracting Ethereum-based projects.

Market Impact and Adoption

Since the V2 upgrade, Sei's daily active wallets have increased from 1,300 to nearly 900,000, and daily transaction volume has surged from 57,000 to 1.65 million. Total Value Locked (TVL) has climbed from $100 million to a peak of $687 million. Data indicates that most new users and newly deployed applications have chosen the EVM environment. The upgrade facilitates integration with MetaMask, lowering barriers for user migration and asset management.

Strategic Positioning and Competition

Sei's strategic move to embrace EVM compatibility addresses the increasing demand for seamless interaction with Ethereum applications. This positions Sei to compete with other Layer 1 blockchains and Layer 2 solutions by offering faster performance and lower latency. The network's ability to cater to high-frequency use cases like trading and gaming, where speed and low fees are critical, strengthens its competitive edge. The Giga Upgrade, launched in July 2025, further solidifies Sei’s position as a high-performance EVM chain, scaling to 200,000 TPS and reducing finality times.

Potential Risks and Future Outlook

Sei's 2025 roadmap balances technical scaling with real-world adoption vectors. While EVM dominance and USDC integration provide momentum, risks include potential delays in validator adoption of new node requirements and competition from other Layer 2 solutions. The network's continued success depends on developers leveraging these upgrades for dApps and maintaining core innovation to avoid losing ground to competitors.