Key Insights
- Sei skilled a pointy reset in DeFi exercise in This autumn 2025 as TVL (USD) fell 63.5% QoQ to $157.2 million alongside a 33.4% QoQ decline in stablecoin provide, reflecting broader DeFi deleveraging in the course of the quarter.
- DeFi drawdowns had been concentrated in lending and pushed by Yei Finance and Takara Lend. Collectively, they accounted for 76.1% of the quarterly loss in TVL, highlighting how Sei’s TVL focus amplified the affect of withdrawals.
- Community exercise remained an space of power for Sei, rising for a sixth straight quarter. Common each day lively addresses (DAAs) elevated 492.2% YoY to 1 million, and common each day transactions made by lively addresses rose 598.7% QoQ to 2.3 million.
- Buying and selling infrastructure continued to increase regardless of DEX quantity declining 33.9% QoQ. Common each day DEX quantity (USD) declined to $28.8 million, however DragonSwap retained AMM dominance, and Oxium launched onchain perpetuals in November.
- Liquid staking consolidated as Silo Stake exited the market. Splashing Stake ended the quarter with a 95.1% share of Sei’s liquid staking TVL following Silo’s shutdown as iSEI tokenholders withdrew the SEI from the protocol.
Primer
Sei (SEI) is a general-purpose Layer-1 community that mixes one of the best of Ethereum and Solana. Particularly, the developer tooling, mindshare, and community results of the Ethereum Digital Machine (EVM), with the efficiency and scalability of high-performance networks like Solana. For a full primer, confer with our Initiation of Protection report.
Sei launched in August 2023 alongside SEI, its native token that serves capabilities associated to (i) transaction charges, (ii) staking, (iii) rewards, and (iv) governance. Sei V1 was based mostly on the Cosmos SDK and Tendermint Core protocol. The community’s built-in options, comparable to Twin-Turbo Consensus and transaction parallelization, scale back latency and improve throughput.
The Sei V2 improve launched three major upgrades to the community in Might 2024: (i) compatibility with Ethereum Digital Machine (EVM) good contracts written in Solidity, (ii) optimistic parallelization, and (iii) a re-architecture of the community’s storage interface with SeiDB. For a full primer, confer with our Initiation of Protection report. Sooner or later, Sei plans to launch Giga on mainnet, an improve that can characteristic a brand new EVM shopper that goals to supply a 50x enchancment in throughput.
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Key Metrics
Sei Labs Group Commentary
Group Commentary Disclaimer
The Undertaking Group Commentary part of this report was written by the Sei Labs staff and displays the views, opinions, and forward-looking statements of Sei Labs solely. This part is included to supply extra context on the challenge’s technique, priorities, and outlook and doesn’t essentially replicate the views or opinions of Messari, Inc.
International Finance Is Coming Onchain
Not possibly. Not finally. It is already beginning. Tokenized Treasuries crossed $9.5 billion. Stablecoin volumes rival Visa. BlackRock, Franklin Templeton, and Hamilton Lane are issuing onchain merchandise. The dialog shifted from “will institutions adopt crypto” to “how fast.”
However here is the issue: most blockchain infrastructure was constructed for crypto because it has existed. DeFi summer time. NFT mints. Memecoin hypothesis. It really works high-quality for that. It will not work for what’s coming.
International finance at scale means a whole bunch of 1000’s of transactions per second, not 1000’s. It means finality quick sufficient that settlement danger disappears. It means charges low sufficient that micropayments make sense. Right now’s infrastructure would not deal with the quantity that tokenized cash markets, 24/7 fairness settlement, and international stablecoin funds will generate.
Sei is being constructed for that future, not this current.
Horizons Are Longer Than Any One Quarter
This autumn was a tough quarter throughout crypto. Sei wasn’t exempt. However Sei’s worth proposition attracts a selected type of builder.
Constructing on Sei means constructing with expertise that allows you to do issues you possibly can’t do elsewhere. That pulls a really particular startup mentality. Surviving the downturns, staying centered, constructing by means of noise, as a result of your time horizon is not measured in cycles however a long time. Lengthy-term builders planting flags.
We see it throughout the Sei ecosystem. Monaco introduced in institutional management and started work on a sub-millisecond CLOB. Oxium is constructing a next-generation perps DEX. Institutional monetary property are touchdown on high-performance rails—non-public credit score through Hamilton Lane, tokenized treasuries, stablecoins—all unlocking capabilities that weren’t doable earlier than.
None of this work stopped as a result of markets pulled again. The horizon is longer than any single quarter. The groups constructing on Sei are constructing for what’s coming, not what’s right here right this moment.
Constructing for a Submit-Convergence World
The Nasdaq handles hundreds of thousands of messages per second at peak load. Visa’s community can course of 65,000 transactions per second. International fee methods collectively settle a whole bunch of billions of transactions yearly. If blockchain goes to turn out to be the infrastructure layer for international finance—not a parallel experiment however the precise rails—it wants to fulfill that scale.
Most networks aren’t remotely shut. 1k TPS was spectacular in 2021. 10k TPS is spectacular right this moment. Neither is ample for a world the place tokenized treasuries, stablecoin payroll, cross-border settlement, and 24/7 fairness markets all run onchain concurrently. The monetary world is just larger than what present blockchain infrastructure can serve.
The race to decentralize Wall Avenue doesn’t even begin till blockchains are not less than on par when it comes to capability.
For this reason we’re constructing Giga. The improve takes Sei to five gigagas(roughly 200k TPS) per second with sub-400ms finality and introduces multi-proposer consensus—a number of validators proposing transactions concurrently, a primary for any EVM Layer 1. The SIP-3 transition, which can make Sei Protocol an EVM-only chain, is already underway. As soon as that’s full, the protocol’s execution and storage might be upgraded. After which, Giga goes to mainnet.
At that time, Sei stops being a quick L1 and begins being real monetary infrastructure. The type of onchain order books, clearing methods, and settlement layers that establishments really want turn out to be doable—not as compromises that tolerate blockchain latency, however as methods that compete with conventional finance on efficiency whereas surpassing it on transparency, accessibility, and composability.
Crypto for the previous 5 years has been an thrilling proof of idea. However the finish sport is international finance, and Sei Giga would be the first blockchain in the beginning line.
Jayendra Jog, Co-Founder, Sei Labs
Ecosystem Evaluation
Gaming
Sei’s gaming ecosystem retraced from the brand new highs set in Q3’25, with a complete of 28 million gaming-related transactions, a lower of 28.4% from 39.2 million in Q3’25. By way of each day lively addresses (DAAs), common DAAs in Sei’s gaming sector had been 197.5K, down 35.7% QoQ from 307.2K in Q3’25. World of Dypians remained a standout because the main sport by common DAAs in This autumn’25, whereas QuizMatch helped offset broader declines, and Piratopia noticed a smaller pullback than most different titles.
- World of Dypians: A massively multiplayer on-line role-playing sport (MMORPG) accessible on the Epic Recreation Retailer. Much like World of Warcraft, gamers management heroes to work together with the sport world. The sport is multichain, accessible on many networks together with Sei, and options onchain parts such because the WOD token and two NFT collections. World of Dypians took the highest spot when it comes to common DAAs in This autumn’25, averaging 81.5KK per day, a 43% QoQ lower.
- QuizMatch: A trivia-based informal sport constructed round brief, aggressive quiz rounds and match play. QuizMatch information scores and leaderboard knowledge onchain and makes use of NFTs as gameplay boosters, comparable to hints and level multipliers. The challenge helps Gem-denominated tournaments, with onchain verification of outcomes and leaderboard integrity, and it additionally affords NFT power-ups comparable to hints and level multipliers. Quizmatch was second when it comes to common DAAs in This autumn’25, averaging 26.3K per day. This was a 403.9% QoQ improve that finally helped offset declining utilization throughout different video games in 2025.
- Piratopia: A pirate-themed technique sport delivered through Steam, with development constructed round NFT participant gadgets, collectibles, and an onchain market. Piratopia has an inner foreign money, GolD, for in-game use, however it’s not a liquid, externally traded token. Piratopia averaged 23.9K DAAs per day in This autumn’25, a 34.4% QoQ improve.
Different notable gaming ecosystem highlights embody initiatives like Archer Hunter, SpinCity, Ultimate Glory, Idle Glory, Dragon Land, Guardian Base, Bike Grasp Problem, Mokoko Video games, Dawnshard, and extra. Notably, Archer Hunter’s steep drop off in This autumn was as a result of earlier quarters being inflated by fuel price subsidies. Particularly, a main pockets was dispersing small quantities of SEI to many secondary wallets, which had been then used to carry out repetitive “Daily Quest Submit”-type transactions. All in all, Sei’s gaming sector had a big retrace in community exercise in This autumn’25 after rising for 5 straight quarters.
DeFi
In This autumn 2025, TVL (USD) fell 63.5% QoQ to $157.2 million. With SEI’s value dropping sharply, lowering 59.9% QoQ to $0.11, TVL (SEI) fell by simply 9.1% QoQ to 1.42 billion. The drawdown coincided with a broader risk-off transfer that started with a liquidation cascade in early October 2025 and didn’t stabilize till December, holding collateral values depressed and limiting rebuilding of cash market positions.
Sei’s DeFi Range rating (i.e., the variety of protocols making up 90% of a community’s TVL) remained at 4 for the second quarter in a row in This autumn’25. Sei’s prime DeFi protocols, Takara Lend, Yei Finance, Sailor, and DragonSwap have continued to carry onto the majority of deposited property for one more quarter.
Borrowing & Lending
Sei’s stablecoin market cap (USD) fell 33.4% QoQ to $98.6 million by the tip of 2025. USDC accounted for 85.1% of stablecoins on Sei at $83.9 million, although its provide fell 37.1% QoQ. Tether’s USDT comprised 11.2% of Sei’s stablecoins, with provide rising 199.1% QoQ to $11 million after a 78.1% drop in Q3’25.
Stablecoins are a core a part of borrowing and lending exercise on Sei. Yei Finance traditionally led this phase, however Takara Lend overtook Yei in This autumn’25. Takara’s TVL declined 41.2% QoQ to $62.2 million, but it nonetheless accounted for 39.5% of Sei’s whole TVL. Takara’s sharp decline in early November 2025 doubtless mirrored incentive-driven outflows as Bitget Pockets’s USDT yield program with Takara ended on Nov. 8, 2025.
Yei Finance skilled a bigger contraction, ending This autumn’25 with a TVL of $48.9 million, down 77.1% QoQ, however nonetheless accounting for 33.1% of Sei’s TVL. On Nov. 4, 2025, Yei briefly suspended operations as a result of irregularities in its fastUSD market, which doubtless contributed to the sharp withdrawal spike noticed in the course of the first week of November 2025. fastUSD was a yield-bearing, artificial stablecoin on Sei constructed by Elixir and backed by deUSD. Quickly after, Elixir introduced it might wind down deUSD because it broke its peg to the greenback. Two days later, Yei Finance said that person funds remained totally accessible and that it might totally repay $8.6 million of USDC dangerous debt collateralized by sfastUSD in its principal pool. Withdrawals had been briefly paused in the course of the compensation course of, with Yei indicating it had resumed regular operations. Collectively, Yei and Takara accounted for 76.1% of the TVL loss in This autumn 2025.
DEXs
Common each day DEX quantity (USD) on Sei decreased 33.9% QoQ to $28.8 million, however has remained elevated all through 2025 in comparison with 2024. DragonSwap continued to guide exercise in This autumn 2025.
- DragonSwap: On Oct. 15, 2025, DragonSwap shipped a significant improve that included a redesigned buying and selling UI, an upgraded staking module, and the discharge of $250K in USDC rewards for staking DRG. The improve additionally pushed customers towards DragonSwap’s Concentrated Liquidity Swimming pools, the place LP positions are represented as NFTs and will be staked for extra incentives.
- DragonSwap averaged $12.4 million in each day buying and selling quantity in This autumn’25, a lower of 5.7% QoQ. The protocol ended This autumn’25 with a TVL of $14.6 million, down 63.6% QoQ for a complete share of 9.3% of Sei’s TVL.
- Sailor: Launched in January 2025, Sailor has emerged with a concentrate on majors and stablecoins. The protocol’s common each day buying and selling quantity of $10.7 million in This autumn’25 was a 6% QoQ improve.
- Sailor’s largest liquidity pool consists of USDC/SEI and contributes over $2 million a day to Sailor’s DEX quantity. Sailor ended the quarter with a TVL of $16.4 million, lowering 49.1% QoQ however nonetheless accounting for 10.4% of Sei’s TVL.
Outdoors of automated market maker (AMM) DEXs like these above, a number of onchain centralized restrict order books (CLOBs) are rising on Sei:
- Citrex Markets: First to go dwell in January 2025, Citrex introduced its factors program in June 2025. In This autumn’25, Citrex launched a vaults product on Sei by means of a collaboration with Orderly Community.
- Oxium: Launched in June 2025 and averaged $4.1 million in each day spot buying and selling quantity in This autumn’25. In November 2025, Oxium expanded into perps on Sei with as much as 100x leverage and a broad set of buying and selling pairs, additional positioning the app as a CLOB for high-frequency buying and selling.
- Monaco Protocol: A perpetual futures change incubated by Sei Labs. In November 2025, Monaco Analysis appointed Simran Singh, the previous Head of DeFi Buying and selling at GSR, as CEO, to assist scale Monaco’s institutional push and go-to-market technique.
As seen in Messari’s report on Subsequent Technology CLOBs, CLOBs are the optimum structure for capital effectivity, value discovery, and scalability. With Sei’s Giga improve looming, the community is completely primed to return to its roots and turn out to be a number one venue for extremely performant, next-gen CLOBs.
Improvement, Progress, & Group
In This autumn 2025, Sei noticed key developments spanning institutional RWAs, change distribution, infrastructure, and new buying and selling venues:
- In October 2025, KAIO introduced Hamilton Lane’s Senior Credit score Alternatives Fund (SCOPEx) onchain on Sei through an access-fund construction, increasing Sei’s lineup of regulated, tokenized non-public credit score merchandise.
- SEI was listed on Robinhood in October 2025, including a mainstream U.S. retail venue. Beforehand, SEI spot liquidity was principally targeting international exchanges comparable to Binance and Bybit that prohibit entry for U.S. customers.
- Binance joined Sei’s validator set in November 2025, including a top-tier operator to consensus as Sei pushes towards its Giga roadmap centered on greater throughput and decrease latency.
- Canary’s proposed staked SEI ETF was registered on the DTCC in November 2025 below the ticker SEIZ. This was an “active and pre-launch” itemizing, a procedural step that doesn’t indicate SEC approval however alerts operational readiness.
- Derivatives protection broadened in November 2025 as Oxium launched perpetuals on Sei and OKX itemizing SEI/USDT perpetual futures, increasing each onchain and centralized venues for leveraged SEI publicity.
- In December 2025, KuCoin’s Web3 Pockets built-in Sei mainnet, enabling customers to ship, obtain, and swap property straight from KuCoin’s self-custody pockets interface.
Monetary Evaluation
SEI Token
SEI bought off sharply in This autumn’25, declining 59.9% QoQ from $0.28 to $0.11. The majority of the drawdown occurred in October 2025, when SEI broke beneath its Q3 buying and selling vary and didn’t get better by means of the rest of the quarter. Whereas no single protocol-specific occasion explains the transfer, the decline coincided with the broader selloff throughout altcoins and fastUSD’s depegging impacting cash markets on Sei.
SEI’s circulating market cap fell 60.6% QoQ to $719.4 million regardless of a 5.9% improve in circulating provide to six.49 billion tokens. SEI’s market cap rank declined from 61st to seventieth by quarter-end, indicating slight underperformance versus the broader market. In the meantime, community exercise continued to develop as Sei’s quarterly transaction charges (SEI) elevated 68.1% QoQ to 292K, although quarterly transaction charges (USD) declined by 8.7% QoQ to $48.9K as a result of SEI’s value decline.
Token Provide
Annualized inflation fell from 4.4% to 4.1% in This autumn’25. Mixed with a 2.9% QoQ lower within the quantity of staked SEI, annualized staking APY elevated from 6% to six.2%. This resulted within the third quarter, during which SEI stakers skilled a optimistic annualized actual yield, with this quarter’s annualized actual yield being 2%.
SEI’s circulating provide elevated 5.9% QoQ to six.49 billion, as a result of a mixture of token unlocks and staking rewards. The vesting lower starting in August 2025 will persist into 2026, with SEI vesting at 113 million tokens monthly. In whole, 338.9 million SEI vested in the course of the quarter. With the Basis allocation totally vested, ongoing unlocks are pushed virtually solely by the non-public investor and core staff allocations, which collectively contribute 97.8 million SEI monthly, alongside smaller releases from the ecosystem reserve. SEI tokens will proceed to vest till Aug. 14, 2033.
Community Evaluation
Utilization
Common each day lively addresses (DAAs) elevated 25.8% QoQ to 1 million in This autumn 2025, whereas common each day transactions made by lively addresses elevated 16.6% QoQ to 2.3 million. A significant uptrend in DAAs and transactions started in November 2024 and continued all through 2025, reaching one other new all-time excessive in This autumn’25. Particularly, 2.1 million DAAs and three.1 million transactions each in mid-December 2025.
Notably, Sei sees a ground of 4 to 6 million each day transactions as a result of a local value oracle. All validators are required to take part as oracles by sending vote transactions and offering up to date value knowledge each different block. Filtering out these transactions leaves solely transactions made by lively addresses, which is extra indicative of community utilization tendencies over time.
The portion of Sei’s whole transactions made by lively addresses has been frequently rising till This autumn 2025. Particularly, transactions made by lively addresses made up 13.5% of all transactions on Sei in Q1’25, 19.5% in Q2’25, 23.2% in Q3’25, after which declined to 14.3% in This autumn’25. General, the long-term tendencies in each day transactions and DAAs present that exercise on Sei stayed flat YoY regardless of a broader market selloff.
Whereas there look like sharp swings in This autumn’25, it is a denominator impact. The determine relies on the each day transaction combine, and Oracle exercise spiked materially in This autumn’25. From Nov. 1 to Dec. 8, 2025, Oracle transactions exceeded 25 million per day, decreasing the share by lively addresses on these days, at the same time as customers had been transacting at comparable ranges. The quarterly share is calculated utilizing totals over the total quarter, together with days exterior that Oracle spike. As soon as these days are included, active-address transactions make up a bigger portion of the quarter’s total exercise than they did in Q3’25.
Staking
Sei’s whole stake (SEI) decreased by 2.9% QoQ to 4.3 billion. As a result of aforementioned drop in SEI’s value, whole stake (USD) noticed a a lot bigger change, lowering 61% QoQ to $476.3 million. Notably, these metrics embody unvested, locked SEI tokens that may be staked to earn liquid rewards.
Liquid Staking
SiloStake has traditionally allowed customers to stake SEI in return for his or her liquid staking token, iSEI, which might be redeemed to obtain the underlying SEI after a 21-day unbonding interval. Earlier than July 2025, SiloStake comprised 99.5% of all liquid staking TVL (SEI) on Sei; nevertheless, that shifted with the launch of Splashing Stake and its spSEI token on July 17, 2025.
Splashing Stake overtook Silo in Q3’25 and solidified its dominance in This autumn’25, accounting for 95.1% of Sei’s liquid staking TVL (SEI) in comparison with Silo’s 4.9%. The shift in market share was largely as a result of Silo saying its shutdown, which pressured customers to withdraw and unbond iSEI earlier than Dec. 31, 2025. As iSEI wound down, Splashing benefited because the remaining lively LST with established onchain liquidity and integrations.
By the tip of This autumn’25, 107 million SEI had been liquid staked on Sei, a 30.2% QoQ lower from the 153.3 million SEI that had been liquid staked by the tip of Q3’25. This was the third quarter during which liquid staking exercise on Sei decreased. In comparison with Sei’s whole stake (SEI), the liquid staking price fell from 3.5% to 2.4%.
Technical Developments
In December 2024, Sei Labs introduced Giga, an in-development improve that plans to supply a 50x enchancment in throughput over different EVM-compatible networks. Particularly, Giga goals to succeed in a most capability of 5 gigagas per second. Gigagas is a measure of a blockchain’s computational capability that replaces the generally used measure of transactions per second (TPS). Nonetheless, the anticipated most TPS post-Giga is roughly 200,000, with a time-to-finality (TTF) of below 400ms.
This degree of efficiency might be achieved by revamped execution, consensus (Autobahn), and storage workstreams. Key upgrades embody clever transaction parallelization that predicts dependencies, the decoupling of consensus over transaction ordering from transaction execution, and the introduction of the first-ever occasion of a number of concurrent proposers on an EVM Layer-1 community, permitting a number of validators to suggest transactions concurrently.
In Might 2025, Sei Labs printed the Sei Giga whitepaper, together with up to date metrics. Sei achieved 5.2 gigagas per second, roughly 148,900 TPS, and 211ms TTF in an inner devnet setting utilizing a set of 20 validators distributed throughout the US, Europe, and Asia Pacific.
In This autumn’25, Sei superior the trail to Giga with the rollout of SIP-3 pockets upgrades, enabling customers with Cosmos-only wallets emigrate funds from native addresses to EVM addresses. The replace is a part of Sei’s transition from a hybrid CosmWasm + EVM community to an EVM-only structure, with CosmWasm elements slated for deprecation as ecosystem wallets, dApps, and custodians full the migration.
In December 2024 and January 2025, Sei skilled a surge in transaction failure charges, rising to 22.7% and 29.7%, respectively. Since then, failure charges normalized all through the remainder of 2025, falling to 12.5% in February and 6.4% in March, and stabilizing later within the 12 months at 9.8% in Q3’25 and 9.7% in This autumn‘25. This level is broadly consistent with other high-throughput networks, with Base averaging 9.6% and Solana averaging around 6% transaction failure rate over the same period. Meanwhile, average block times on Sei remained flat, going from an average of 499ms in Q3’25 to 503ms in This autumn’25, a 0.8% QoQ improve.
Closing Abstract
This autumn 2025 was a pointy reset for Sei. TVL (USD) fell 63.5% QoQ to $157.2 million together with a 33.4% decline in stablecoin provide, whereas DEX volumes cooled as common each day spot quantity (USD) dropped 33.9% QoQ to $28.8 million. DeFi deleveraging was concentrated in lending, and the lower was dominated by Yei Finance and Takara Lend, which collectively accounted for 76.1% of the quarter’s TVL decline. Liquid staking additionally contracted for a 3rd straight quarter and underwent a structural shift as Splashing Stake consolidated market share into spSEI amidst the closure of Silo.
Consumer exercise was a shiny spot as Sei prolonged its development streak to a sixth consecutive quarter, with common each day lively addresses reaching 1 million and common each day transactions by lively addresses rising to 2.3 million. Elevated Oracle visitors throughout This autumn distorted the each day transaction combine, however quarterly averages nonetheless level to comparatively sticky user-driven throughput, regardless of declines throughout most different metrics in 2025.
Whilst DEX volumes trended decrease, Sei’s buying and selling stack continued to evolve, with DragonSwap remaining the highest AMM and Oxium increasing into onchain derivatives. Token unlocks remained regular at 113 million SEI monthly, whereas stakers recorded a 3rd consecutive quarter of optimistic actual yields as inflation fell to 4.1% and staking APY rose to six.2%. The important thing query for 2026 is whether or not Sei can translate sustained person development and ongoing infrastructure progress right into a restoration in stablecoin provide, DeFi liquidity, and buying and selling exercise.
