In-Depth Exploration of Sei: Blockchain Performance, Compliance, and Interoperability

Written by: 0xResearcher

While the market is still boiling over meme coins and ETFs, some traditional financial players with a longer vision have quietly turned in another direction: towards infrastructure that is more powerful, compliant, and cross-chain friendly. What they want is not "short-term thrills," but rather a foundational system that the next generation of finance can truly run on. And Sei is becoming a popular choice in their eyes.

Upon careful observation, one can find that its most prominent feature is: it retains the native technical advantages of cryptocurrency while actively embracing regulatory frameworks. It does not pursue short-term popularity, but rather focuses on solving the two most difficult issues for blockchain implementation—performance bottlenecks and compliance barriers. This development philosophy of "slow is fast" may be precisely the characteristic the industry needs most as it transitions from speculation to practicality.

Performance Innovation: From "Second Level" to "Millisecond Level"

While most blockchains are still dealing with the issue of "hundreds of transactions per second," Sei has taken speed to another dimension: it can process over 12,500 transactions per second (TPS), with a final confirmation time of just 400 milliseconds. In comparison, the confirmation time of the Ethereum mainnet is 470 times longer, and even Solana, which claims to be "fast as lightning," is 22% slower.

Moreover, Sei is fully compatible with Ethereum ecosystem development tools, such as Hardhat and Foundry, allowing developers to get started "painlessly," significantly reducing migration and development costs.

Compliance design, born for institutions

When institutions start to truly engage with blockchain, the focus of the issue shifts from "whether it can be used" to "whether it is trustworthy." In this regard, Sei significantly reduces the risk of being captured by MEV in large transactions by introducing a "deterministic Gas fee" model, while also improving the predictability of overall transaction costs. Coupled with high-performance RPC nodes that respond in nanoseconds and an audited mempool architecture, these greatly enhance the friendliness of on-chain systems for institutional users.

At the same time, its compliance capability is not just a verbal commitment. For instance, a new entity in the ecosystem recently established a compliant operational structure in the United States and launched a $65 million fund to support DeSci (Decentralized Science) projects, which itself conveys a long-term investment and emphasis on compliance.

ETF Endorsement: A Key Signal to Boost Market Confidence

In addition to a solid foundation in technology and compliance, Sei has also made key breakthroughs in asset financialization. Recently, Canary submitted the first ETF based on Sei's staked assets in the United States, which is not only an important milestone for Sei but also a recognition of the quality of its underlying assets by the entire industry.

It is important to emphasize that not all blockchain projects meet the conditions to launch a staked asset ETF. Therefore, Sei's inclusion in the ETF product itself represents a strong market endorsement. Against the backdrop of the current market sentiment gradually warming, such progress is very likely to become a key variable in boosting community and institutional confidence.

Cross-Chain Liquidity Aggregation: Breaking Down Inter-Chain Barriers

To solve the problem of fragmented liquidity, Sei collaborates with cross-chain protocols such as Wormhole and Axelar to achieve seamless connectivity with mainstream blockchains like Ethereum and Cosmos. Users can freely interact between protocols on different chains without the cumbersome bridging operations.

In addition, Seu has partnered with Circle to develop a compliant cross-chain USDC channel, ensuring the secure circulation of stablecoins across different chains. To incentivize liquidity providers, a $50 million Liquidity Bootstrapping Fund (LBF) has been established to support cross-chain trading and asset management.

Rapid Expansion of the Ecosystem: A Flourishing Transition from DeFi to Gaming

Since mid-2024, the Sei ecosystem has rapidly developed, attracting over 150 projects deployed on the mainnet, with daily active addresses reaching 400,000 and a total user count exceeding 6.5 million. In the first quarter of 2025, the Total Value Locked (TVL) grew by 73.7%, reaching $363 million, and the market value of stablecoins hit a historical high of $178 million.

It is particularly worth mentioning that the gaming sector has become a major driver of growth. The average daily transaction volume related to gaming has reached 354,000, a year-on-year increase of 79.8%. For example, the multiplayer online role-playing game World of Dypians, similar to World of Warcraft, has seen significant user growth on these platforms.

In addition, a $10 million Creator Fund and a $250,000 Street Team program have been launched to support the development of NFT and social projects, encouraging global creators to participate in the construction of the ecosystem.

Starting Point of a New Phase: Giga Upgrade and Future Blueprint

Although the current data is already impressive, Sei's ambitions are clearly not limited to this. The Giga upgrade, scheduled for launch in 2025, will introduce a brand new EVM client, with performance improvements expected to reach 50 times the current level. This not only signifies a qualitative change in processing power but also symbolizes a further leap towards the goal of a "universal infrastructure."

From infrastructure to ecological prosperity, and then to institutional design and technological evolution, Sei has completed in less than two years the path that traditional projects take five years to explore. It may not be the loudest voice in the market, but it could be the most resolute force in building the next era of blockchain.

Moving Towards a Decentralized Future

The technical upgrade of Sei is not only a leap in performance but also an important step in its global strategic layout. By establishing a legally compliant operating entity in the United States, it provides a solid foundation for global expansion. As the ecosystem continues to grow and the technical performance keeps improving, it is leading blockchain technology towards a truly decentralized future.

In this process, Sei not only provides developers with a powerful technical platform but also brings a more efficient and secure blockchain application experience to global users. With continuous technological advancements, it is expected to become a bridge connecting Web2 and Web3, leading the development of the next generation of the internet.