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State of Sei Q2 2025 - news.adtechsolutions State of Sei Q2 2025 - news.adtechsolutions

State of Sei Q2 2025


Key Insights

  • The price of SEI rebounded 63.5% QoQ to $0.28, while its circulating market cap increased 86.1% QoQ to $1.57 billion. The token’s monthly rate of vesting will decrease in August 2025, from 219.7 million to 113 million SEI.
  • Real staking yield on Sei turned positive for the first time, ending the quarter at 0.6% annualized. Canary Capital filed with the SEC to register an ETF for SEI, which, if approved, would allocate a portion of SEI holdings to staking.
  • TVL (USD) increased 67.8% QoQ, ending the quarter at an all-time high of $609.4 million, though DeFi Diversity decreased for the first time, down to four core protocols. Stablecoin market cap (USD) also reached an all-time high of $276.8 million.
  • DragonSwap conducted its token genesis event (TGE), launching the DRG token on July 8, 2025. Average daily DEX volume (USD) reached all-time highs of $24.6 million in Q2 2025, led by Sailor and DragonSwap.
  • Yei Finance launched YeiSwap to increase capital efficiency by allowing lent assets to double as tradeable liquidity. Yei’s TVL (USD) increased 90.5% QoQ to $365.9 million while Takara Lend, another lending protocol, grew 374.9% QoQ to $71.3 million.

Primer

Sei (SEI) is a general-purpose Layer-1 network that combines the best of Ethereum and Solana. Specifically, the developer tooling, mindshare, and network effects of the Ethereum Virtual Machine (EVM), with the performance and scalability of high-performance networks like Solana. For a full primer, refer to our Initiation of Coverage report.

Sei launched in August 2023 alongside SEI, its native token that serves functions related to (i) transaction fees, (ii) staking, (iii) rewards, and (iv) governance. Sei V1 was based on the Cosmos SDK and Tendermint Core protocol. The network’s built-in features, such as Twin-Turbo Consensus and transaction parallelization, reduce latency and increase throughput.

The Sei V2 upgrade introduced three major upgrades to the network in May 2024: (i) compatibility with Ethereum Virtual Machine (EVM) smart contracts written in Solidity, (ii) optimistic parallelization, and (iii) a re-architecture of the network’s storage interface with SeiDB. For a full primer, refer to our Initiation of Coverage report. In the future, Sei plans to launch Giga, an upgrade that aims to include a new EVM client that offers a 50x improvement in throughput.

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Key Metrics

Ecosystem Analysis

Gaming

Sei’s gaming ecosystem continued to thrive in Q2 2025, reaching a total of 49.5 million gaming-related transactions, an increase of 24% from 39.9 million in Q1’25. World of Dypians continued to be a standout but was overtaken by Hot Spring in terms of transactional activity.

Other notable gaming ecosystem highlights include projects like Europe Fantasy League, Piratopia, SpinCity, Kawaii Puzzle, Sugar Senpai, Empire of SEI, DragonLand, Sacred Tails, Helium Wars, Sunnyside Acres, FishWar, Quizmatch, Dragon Slither, Seiyara, Capy vs Monsters, Cat VS Monsters, Astro Karts, Grand Gangsta City, Dawnshard, Arcade Galaxy, Zombies of Arcadia, and more.

All in all, Sei’s gaming sector has been a major contributor to network activity growing for a fourth straight quarter in Q2’25, with average daily active addresses (DAAs) up 36.6% QoQ to 426,000 and average daily transactions up 12.6% to 720,300.

DeFi

Over a year has passed since the launch of Sei V2, which introduced EVM compatibility in May 2024 and kick-started Sei’s DeFi ecosystem. In Q2 2025, TVL (USD) grew for a second straight quarter, increasing 67.8% QoQ to an all-time high of $609.4 million. With SEI’s price increasing 63.5% QoQ to $0.28 and the token being heavily utilized across Sei’s DeFi ecosystem, TVL (SEI) rose by a more modest 2.6% QoQ to 2.16 billion.

Sei’s DeFi Diversity score (i.e., the number of protocols making up 90% of a network’s TVL) decreased 33.3% in Q2’25, from six to four. This was the first ever contraction, highlighting that Sei’s top DeFi protocols are being cemented and growing more rapidly than smaller protocols.

Borrowing & Lending

Sei’s stablecoin market cap (USD) grew to an all-time high of $276.8 million by the end of Q2 2025. This is led by Circle’s USDC, which accounts for 84.5% of all stablecoins on Sei, with $233.7 million as supply grew 54% QoQ. While USDT only accounts for 9.9% of stablecoins on Sei, its supply grew 464.7% QoQ to $27.4 million, spurred by the launch of USD₮0 and migration away from USDT on April 9, 2025.

Circle launched support for native minting and burning, and Cross-Chain Transfer Protocol (CCTP) compatibility on Sei in July 2025. Notably, Circle was an early investor in Sei and currently holds 6.25 million SEI, which was worth $1.7 million at the end of Q2’25.

Stablecoins are a core part of borrowing and lending activity on Sei, which has always been dominated by Yei Finance, and still is. Yei grew again in Q2’25 as the protocol continued a points program that began on June 17, 2024. In May 2025, Yei extended its partnership with Binance Wallet for a third season, offering $1.4 million in incentives through July 2025. The protocol ended Q2’25 with a TVL of $365.9 million, up 90.5% QoQ for a total share of 60.1% of Sei’s TVL.

On May 27, 2025, Yei launched its Yeilians NFT collection, which minted out instantly. Among the first benefits for Yeilians holders was access to Yei’s new product, YeiSwap. On July 3, 2025, Yei launched YeiSwap in beta. Similar to Fluid, YeiSwap increases capital efficiency by allowing lent assets to double as tradeable liquidity, increasing yields for users, who earned badges as beta participants.

Outside of Yei, Takara Lend has grown to become a legitimate competitor. The protocol’s TVL grew 374.9% QoQ to $71.3 million, or 19.5% of Yei’s TVL and 11.7% of Sei’s TVL. In May 2025, Takara partnered with Bitget Wallet to provide $1 million in incentives through August 2025, which led to major TVL growth. Takara also offers an in-app swap feature powered by Symphony Exchange, a DEX aggregator, and an in-app bridge feature powered by DeBridge and LI.FI.

DEXs

Average daily DEX volume (USD) on Sei increased 52.6% QoQ to $24.6 million and has sustained the elevated levels seen in Q4’24. A major shift in market share over spot DEX volume has taken place in 2025. Sailor leads average daily DEX volume (USD) as the incumbents, DragonSwap and Jellyverse, lost market share relative to Sailor in Q2 2025.

  • DragonSwap: Surpassed $2 billion in all-time trading volume in May 2025. Two weeks later, the protocol fed off this momentum by announcing the DRG token. Tokenomics included 20% to the team, 5% to investors, 2% for airdrops, and 70% for community and ecosystem growth. The token’s utility primarily includes staking for protocol revenue and partner incentives.
    • The token launched on July 8, 2025, with the initial airdrop occurring on July 16, 2025. The airdrop consisted of 0.5% of the total supply. It was distributed based on DragonSwap’s points program that began on June 25, 2024, combined with an xDRG points program leading up to the TGE, among other smaller criteria.
    • DragonSwap averaged $8.2 million in daily trading volume in Q2’25, an increase of 33.5% QoQ. The protocol ended Q2’25 with a TVL of $35.6 million, up 123.7% QoQ for a total share of 5.8% of Sei’s TVL.
  • Sailor: Launched in January 2025, Sailor has taken over spot trading volume on Sei with a focus on majors and stablecoins. The protocol averaged $10.2 million in daily trading volume in Q2’25, up 41.5% QoQ.

Outside of automated market maker (AMM) DEXs like those above, onchain centralized limit order books (CLOBs) are beginning to emerge on Sei. Citrex Markets was first to go live in January 2025 and announced its points program in June 2025. Oxium followed, launching in June 2025. Monaco Protocol is next, slated to launch later in 2025. As seen in Messari’s report on Next Generation CLOBs, CLOBs are the optimal DEX architecture for capital efficiency, price discovery, and scalability. With Sei’s Giga upgrade looming, the network is perfectly primed to return to its roots and become the venue for highly performant, next-gen CLOBs.

Development, Growth, and Community

A renewed focus on builders, creators, and contributors within the Sei ecosystem was on display in Q2 2025 with an emphasis on US-based innovation and AI builders:

  • In June 2025, the ai/accelathon was announced. Spanning from June 24 to August 24, and including up to $1 million in prizes and seed funding, the ai/accelathon is an AI-focused hackathon aiming to “accelerate the frontier of autonomous onchain intelligence.”
  • In June 2025, Webacy announced it had introduced support for Sei, giving users access to address risk scoring, detection, and decisioning infrastructure.
  • In May 2025, Hyperactive announced it had introduced support for Sei, giving users access to real-time threat prevention and automated risk mitigation.
  • In May 2025, it was announced that Bitget had introduced support for the Sei network on Bitget Wallet.
  • In April 2025, Sei Foundation announced the incorporation and funding of the U.S.-based Sei Development Foundation (SDF). This nonprofit is dedicated to offering builders support and resources, fueling ecosystem growth, and helping position the U.S. as a global leader in crypto.
    • In May 2025, SDF appointed Jamie Finn as Strategic Advisor. Jamie Finn is the Co-founder and President of Securitize, which highlights a focus on real-world assets (RWAs) for Sei.
    • In May 2025, SDF released the SDF Manifesto, which describes how breakthrough infrastructure enables breakthrough innovation. The manifesto is guided by four pillars: American dynamism, performance infrastructure, emerging use cases, and economic opportunity.
  • In April 2025, Canary Capital filed with the U.S. Securities and Exchange Commission (SEC) to register an Exchange Traded Fund (ETF) for SEI. If approved, the ETF would offer investors access to SEI and staking rewards by allocating a portion of SEI holdings to staking.
  • In April 2025, Dynamic and the SDF introduced the Sei Global Wallet, which is intended to provide a wallet experience where users can sign in with Email, Google, X, or Telegram credentials and seamlessly access applications on Sei.

Financial Analysis

SEI Token

SEI’s price increased throughout the first half of Q2 2025, reaching a high of $0.27 on May 10, before dropping back down to a low of $0.16 on June 17. However, the token rallied 69.2% over the final two weeks of the quarter. Overall, SEI’s price increased 63.5% QoQ to end Q2’25 at $0.28. Meanwhile, Sei’s quarterly transaction fees (USD) increased 70.9% QoQ to $38,400, while quarterly transaction fees (SEI) increased by 93.4% QoQ to 148,900.

Due to a circulating supply increase of 13.8% QoQ to 5.56 billion, SEI’s circulating market cap increased by a larger percent, up 86.1% QoQ to $1.57 billion. However, the token’s circulating market cap rank fell from 66th to 72nd, indicating slight underperformance compared to the broader market.

Token Supply

Annualized inflation decreased from 5.5% to 4.8%. Combined with a 6.3% QoQ decrease in the amount of staked SEI, annualized staking APY increased from 5.1% to 5.4%, resulting in the first time Sei stakers experienced a positive annualized real yield of 0.6%.

SEI’s circulating supply increased 13.8% QoQ to 5.56 billion, due to a mix of token unlocks and staking rewards. In Q2’25, 659 million SEI vested, with the investor and project team allocations vesting at a combined rate of 97.8 million SEI per month.

SEI tokens will continue to vest until Aug. 14, 2033. However, the monthly rate of vesting is set to decrease in August 2025, from 219.7 million to 113 million SEI. This change is due to the Sei Foundation’s allocation having fully vested, and the ecosystem reserve allocation’s monthly vesting decreasing from 92.7 to 15.2 million SEI.

Network Analysis

Usage

Average daily active addresses (DAAs) increased 36.6% to 426,000 in Q2 2025, while daily transactions made by active addresses increased 12.6% to 720,300. A major uptrend in DAAs and transactions began in mid-November, reaching a peak of 486,760 DAAs and 738,990 transactions on January 10. The trend stabilized in Q1’25, before continuing to new all-time highs in Q2’25. Specifically, 676,900 DAAs on June 30, and 1.73 million transactions on June 25.

Notably, Sei sees a floor of approximately 4 million daily transactions due to a native price oracle. All validators are required to participate as oracles by sending vote transactions and providing updated price data in every other block. Filtering out these transactions leaves only transactions made by active addresses that are indicative of real users on the network.

The portion of Sei’s total transactions made by active addresses has been continually increasing. Specifically, transactions made by active addresses made up 8.8% of all transactions on Sei in Q4’24, 13.5% in Q1’25, and 19.5% in Q2’25. Overall, the positive changes in average daily transactions and DAAs show that Sei continued to grow at a rapid pace once again in Q2’25.

Staking

Sei’s total stake (SEI) decreased by 6.3% QoQ to 4.93 billion. However, combined with the aforementioned increase in SEI’s price, total stake (USD) increased 53.2% QoQ to $1.39 billion. Notably, these metrics include unvested, locked SEI tokens that can be staked to earn liquid rewards.

Liquid Staking

SiloStake allows users to stake SEI in return for their liquid staking token, iSEI, which can be redeemed to receive the underlying SEI after a 21-day unbonding period. As of the end of Q2 2025, SiloStake comprised 99.5% of all liquid staking TVL (SEI) on Sei, continuing to dominate as the only relevant player in Sei’s liquid staking sector.

By the end of Q2’25, 176.2 million SEI had been liquid staked with Silo, a 12.8% QoQ decrease from the 202.1 million SEI that had been liquid staked by the end of Q1’25. This was the first time liquid staking activity on Sei decreased. Compared to Sei’s total stake (SEI), the liquid staking rate fell from 3.9% to 3.6%.

Technical Developments

In December 2024, Sei Labs announced Giga, an in-development upgrade that plans to offer a 50x improvement in throughput over other EVM-compatible networks. Specifically, Giga aims to reach a maximum capacity of five gigagas per second. Gigagas is a measure of a blockchain’s computational capacity that replaces the commonly used measure of transactions per second (TPS). However, the anticipated maximum TPS post-Giga is approximately 200,000, with a time-to-finality (TTF) of under 400ms.

This level of performance will be achieved by revamped execution, consensus (Autobahn), and storage workstreams. Key upgrades include intelligent transaction parallelization that predicts dependencies, the decoupling of consensus over transaction ordering from transaction execution, and the introduction of the first-ever instance of multiple concurrent proposers on an EVM Layer-1 network, allowing multiple validators to propose transactions simultaneously.

In May 2025, Sei Labs published the Sei Giga whitepaper, along with updated metrics. Sei achieved 5.2 gigagas per second, approximately 148,900 TPS, and 211ms TTF in an internal devnet environment using a set of 20 validators distributed across the United States, Europe, and Asia Pacific.

In Q2 2025, block times on Sei continued to increase, going from an average of 492ms to 513ms, a 4.4% QoQ increase. Sei also saw transaction failure rates surge in December 2024 and January 2025 to 22.7% and 29.7%, respectively. Transaction failure rates began to normalize after that period, falling to 12.5% in February and 6.4% in March, before averaging 7.7% throughout Q2’25.

In May 2025, Sei Labs introduced Sei Improvement Proposals (SIPs). SIPs aim to make network upgrades a more transparent process with increased discourse from the ecosystem and the general public. There were three SIPs introduced in Q2 2025:

  • SIP-01 (Sei Improvement Proposal Process): Written by Sei Foundation, SIP-01 lays out the guidelines and requirements for the submission and lifecycle of SIPs.
  • SIP-02 (External Transaction Bundles Support): Written by SiloStake, SIP-02 would create offchain transaction bundling that enables maximum extractable value (MEV) opportunities similar to Ethereum’s Flashbots and Solana’s Jito. This could lead to net-new tip revenue for validators, which could flow to stakers, increasing staking yield.
  • SIP-03 (Deprecating CosmWasm & Cosmos): Written by Sei Labs, SIP-03 was approved in May 2025 and will deprecate CosmWasm and Cosmos-native transactions in favor of an EVM-only architecture. This change reflects the dominance of EVM activity since the launch of Sei v2 and aims to simplify the developer experience by reducing infrastructure overhead.
    • Notably, this was the beginning of a multi-phase transition. In the future, Sei Labs will publish concrete dates for each phase and will implement feedback gathered from the initial SIP-03 proposal.

Closing Summary

Sei sustained strong momentum in Q2 2025, reaching all-time highs across multiple key metrics. Gaming remained a growth driver as daily active addresses (DAAs) increased 36.6% QoQ to 426,000 while transactions also reached record highs. DeFi TVL (USD) grew 67.8% QoQ to a peak of $609.4 million, driven by Yei Finance and Takara Lend. Stablecoin supply (USD) climbed to $276.8 million, which was followed by Circle’s launch of native USDC on Sei. DEX activity on the network also hit new highs as average daily DEX volumes (USD) increased 52.6% QoQ to $24.6 million. Sailor and DragonSwap led the activity, the latter of which leveraged momentum to launch the DRG token.

Financially, the price of SEI rose 63.5% QoQ to $0.28, while the circulating market cap increased 86.1% to $1.57 billion. SEI stakers experienced positive real yields of 0.6% for the first time, and the network’s governance process matured with the introduction of Sei Improvement Proposals (SIPs). Meanwhile, Sei Labs continued work on the Giga upgrade, recording internal devnet benchmarks of 148,900 TPS and 211ms time-to-finality.

Looking ahead, Sei enters the second half of 2025 with tailwinds from an upcoming monthly token vesting reduction, a potential Canary Capital ETF approval, and the launch of Giga. These catalysts, combined with a growing ecosystem of builders and users, have led to Sei becoming one of the top Layer-1 networks primed for continued momentum.

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