Sei’s Shift to EVM-Only Model Sparks Debate Amidst Recent Market Gains

  • Sei’s shift from Cosmos support to a solely EVM-focused strategy has ignited discussions across the crypto community, reflecting a significant evolution in blockchain interoperability.

  • The transition aims to streamline operations, leveraging the Ethereum ecosystem’s popularity and increasing user engagement as evidenced by recent market trends.

  • According to Sei’s official statement, “This proposal aims to enhance developer experience, simplify infrastructure, and fully leverage Sei’s parallelized EVM performance as the network builds toward Giga.”

Sei transitions to an EVM-only model, citing higher user engagement and aiming to enhance developer experience while sparking mixed community reactions.

Understanding Sei’s EVM-Only Strategy

Sei, recognized for its robust throughput, is shifting its focus exclusively to the Ethereum Virtual Machine (EVM), effectively discontinuing support for the Cosmos network.

This strategic pivot, announced in early May, reflects a growing trend favoring EVM compatibility among blockchain networks. Sei Labs’ engineering lead, Philip Su, noted that the decision comes in response to the burdensome complexity within its current infrastructure which attempts to cater to both Cosmos and EVM platforms.

Data from Dune Analytics reveals a significant discrepancy in user engagement: at the peak in December 2024, EVM users outnumbered Cosmos participants by a staggering 162 times, underscoring the preference for EVM-based projects.

Sei user statistics

Source: Dune Analytics

Furthermore, Sei recorded a 2.5-fold increase in EVM users compared to Cosmos in April 2025, highlighting an ongoing trend of migration towards EVM platforms. The Sei community is divided, with some proponents pointing to the low engagement of Cosmos users, while others express concerns about the future of their existing Cosmos-based assets.

“Hope they build a bridge for those who have built on the OG side. Our entire collection isn’t on EVM,” commented a community member, emphasizing the need for migration tools for users with existing investments.

The Impacts on Total Value Locked (TVL)

Despite the mixed opinions, Sei’s move appears to position the blockchain favorably within the DeFi landscape. Recent statistics from DeFiLlama indicate that Sei’s total locked value (TVL) has surged from $160 million to an impressive $480 million from October 2024 to May 2025.

Sei total locked value chart

Source: DeFiLlama

The bullish sentiment surrounding Sei is further supported by its user base growth, which reportedly doubled from 35,000 to 85,000 in just three weeks. This influx of new users coincided with a remarkable 72% price rally, pushing the token’s value above $0.22 as of early May.

Although prices have seen minor corrections, support levels around $0.18-$0.20 have proven resilient, indicating potential for further upward momentum should these levels hold steady.

Sei price chart

Source: SEI/USDT, TradingView

Navigating Community Concerns

The community’s response to Sei’s EVM-centric strategy has been mixed, with an evident divide between early adopters and new entrants familiarizing themselves with the Sei ecosystem.

The primary concern among long-time users is the migration of assets originally built on the Cosmos network. As Sei focuses on enhancing EVM functionality, the potential need for bridging solutions becomes critical for maintaining user confidence and participation.

Addressing these concerns directly could present Sei with an opportunity to demonstrate its commitment to its user base while simultaneously enhancing its functionality and attractiveness as a DeFi platform.

Conclusion

Sei’s transition to an EVM-only framework highlights a strategic move aimed at simplifying development and increasing user engagement. While the decision has sparked debate within the community, the accompanying growth in total locked value and user adoption reflects potential long-term benefits. As Sei navigates this transitional period, its ability to innovate and address community concerns will be crucial for sustaining momentum and fostering trust.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin Surges 11% in May Amidst $5.2 Billion Spot ETF Inflows

In a significant development for the cryptocurrency landscape, data...

Binance to Update Leverage and Margin Levels for LRCUSDT and PHBUSDT Contracts on June 6, 2025

On June 1st, an official announcement from Binance revealed...

Concerns Rise as US Credit Default Swaps Hit 12-Year High: What Investors Need to Know

COINOTAG News, June 1st – Recent analysis from The...

Bitcoin’s Key Price Levels: $103,000 and $105,000 Hold Crucial Liquidation Intensity for Traders

As reported by COINOTAG News on June 1st, recent...

Trump’s Intense Reaction to ‘TACO’: Market Implications and Investor Concerns

COINOTAG News, June 1st. The term "TACO" (Trump Always...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img