What is Sei (SEI)?

By CMC AI
27 September 2025 08:50PM (UTC+0)

TLDR

Sei (SEI) is a high-performance Layer 1 blockchain optimized for trading and decentralized finance (DeFi), combining Ethereum Virtual Machine (EVM) compatibility with chain-level speed enhancements to support fast, low-cost transactions.

  1. Trading-First Architecture – Built to optimize decentralized exchanges (DEXs) and trading apps with sub-second transaction finality.

  2. EVM Compatibility + Speed – Balances Ethereum developer tools with parallelized execution for scalability.

  3. Institutional-Grade Ecosystem – Integrates stablecoins, RWAs, and gaming apps, attracting institutional liquidity.

Deep Dive

1. Purpose & Value Proposition

Sei aims to solve inefficiencies in on-chain trading by prioritizing speed and scalability. Its architecture is tailored for markets requiring high-frequency transactions—like DeFi, gaming, and NFT platforms—with sub-400ms finality (Sei Network). This focus makes it a preferred chain for applications where latency impacts user experience, such as real-time trading or in-game asset swaps.

2. Technology & Architecture

Sei uses a parallelized execution layer (Autobahn consensus) to process transactions simultaneously, achieving up to 200,000 transactions per second (TPS). Its EVM compatibility allows seamless deployment of Ethereum-based dApps, while the upcoming Giga upgrade aims to boost throughput 50x by optimizing storage and consensus (Sei Giga Whitepaper). This hybrid approach merges Ethereum’s developer ecosystem with Solana-like speed.

3. Ecosystem & Use Cases

Sei’s ecosystem spans DeFi, gaming, and institutional finance:
- DeFi: Hosts $1.53B in monthly DEX volume, with protocols like Dragonswap and Rubicon Staking (DefiLlama).
- Gaming: Supports 100K+ daily gaming transactions, including titles integrated with the Epic Games Store.
- Institutional Adoption: Partners like Circle (USDC issuer) and Ondo Finance (tokenized Treasuries) leverage its speed for settlements (Crypto.com).

Conclusion

Sei is positioning itself as the infrastructure layer for high-speed, institutional-grade on-chain markets. By bridging Ethereum’s ecosystem with unmatched scalability, it addresses critical gaps in DeFi and gaming. As blockchain adoption grows, will Sei’s trading-first design cement its role as the backbone of real-time financial applications?

CMC AI can make mistakes. Not financial advice.