Analysis of SEI Technology Upgrade and Kalshi Integration Driving Accelerated Ecosystem Expansion
TL;DR
Sei Network is driving its ecosystem expansion through three main engines: at the technology layer , it is advancing Giga upgrades (aiming for 200,000 TPS and a finality of under 400ms); at the application layer , it completed the Kalshi prediction market integration on December 2nd ($11B valuation, CFTC regulation); and at the ecosystem layer , it achieved a peak of 1.6 million daily active users and the milestone of 1 million blocks. Although TVL decreased from $579M in September to $222M in December (-63%), user growth (peak of 1.6 million DAU in November), institutional presence (inclusion in Coinbase COIN50, launch on Robinhood), and a 64% weekly increase in DeFi trading volume indicate improved ecosystem activity. Community sentiment is positive, optimistic about its speed advantage and the potential of TradFi-DeFi bridging.
Overview of Technology Upgrades
Upgrade complete
The SIP-3 wallet architecture transition (activated October 27, 2025) will transition Sei to a pure EVM architecture, removing CosmWasm support to simplify operations and paving the way for Giga upgrades. The x.com network has processed over 4 billion lifetime transactions , validating its high-frequency performance. x.com
The core capabilities of Sei v2 (launching in July 2024) include:
- Full EVM bytecode compatibility , supporting seamless migration of Ethereum smart contracts.
- Optimistic Parallelization : Achieving Parallel Transaction Processing Across EVM/CosmWasm
- Twin Turbo consensus achieves ~400ms block time and PebbleDB storage optimization.
Giga upgrade under development
Target performance (released in Q4 2025):
- Sub-second finality : <400ms confirmation time
- A throughput of 5 gigagas/second , equivalent to approximately 200,000 TPS.
- Autobahn Multi-Proposer Consensus and Asynchronous Execution Architecture
| Technical characteristics | Sei v2 (current) | Sei Giga (target) |
|---|---|---|
| Block Time | ~400ms | <400ms |
| Throughput | Optimize EVM parallelism | 200,000 TPS |
| consensus mechanism | Twin Turbo | Autobahn multiple proposers |
| Application scenarios | DeFi/NFT | High-frequency trading/TradFi |
Infrastructure tools : The SEICTL node configuration tool introduces automated verification and will soon support Kubernetes and AI diagnostics, enhancing operational reliability. x.com
Kalshi ensemble analysis
Integration Details
On December 2, 2025 , the Kalshi prediction market platform officially integrated Sei Network, enabling the following functionality: x.com
- Native asset support : Users can deposit/withdraw SEI and native USDC for trading.
- Real-time contract trading : Utilizing Sei's low latency (<400ms) for predicting global events such as politics, economics, and sports.
- Regulatory Compliance : Kalshi receives CFTC regulation, valued at $11 billion, bringing legitimacy to on-chain prediction markets.
Ecological synergy effect :
- CNN Partnership (Announced December 2): The Kalshi-CNN integration will showcase Sei's blockchain-based real-time odds predictions to CNN audiences, expanding Sei's brand exposure. x.com
- Enhanced composability : Prediction markets form a liquidity loop with Sei's DeFi perpetual, stablecoins, and applications. x.com
Community response
KOL opinion quality assessment :
| Analyst | Key points | quality of argumentation |
|---|---|---|
| @Guomin184935 | "Transforming regulated prediction markets into on-chain assets will remove the ceiling on ecosystem liquidity." | ⭐⭐⭐⭐ Relationship between regulatory value and DeFi composability |
| @Nick_Researcher | "TradFi-DeFi Bridging Breakthrough: Partnership with CNN Brings User Traffic and Increased Trading Volume" | ⭐⭐⭐⭐ Clear quantitative path (users → trading volume) |
| @AltCryptoGems | "Leveraging Sei's speed advantage to turn predictions into profits and diversify trading events." | ⭐⭐⭐ Scenario application description, lacking specific data |
The community is generally excited about the narrative of "global events becoming directly tradable assets," emphasizing Sei's low latency advantage as an ideal infrastructure for real-time settlement. x.com
Mainnet ecosystem expansion
User and transaction growth
User milestones (as of November 2025):
- Peak daily active users : 1.6 million (November 26), including 1.2 million returning users.
- Total users : 81.5 million+, with 230,000 new users added in a single day.
- Monthly active addresses : 13 million (October data)
- Peak transaction volume : 2.94 million EVM transactions in a single day (November 9th)
Trend : After reaching a two-year high in November, DAU stabilized at 821,000 in early December (-6.74% monthly), but remained highly active.
DeFi and TVL performance
Current on-chain TVL (December 4, 2025): $222.38M , up 2.30% in 24 hours.
TVL composition analysis :
| category | TVL | percentage | Key Protocols |
|---|---|---|---|
| Loans | $140.89M | 63.4% | Takara Lend ($83.7M), YeiLend ($52.45M) |
| Liquidity Pledge | $19.16M | 8.6% | iSEI, rSEI |
| DEX | dispersion | ~20% | Dragon Swap Sei, Yei Finance |
| Stablecoin market capitalization | $86.43M | - | USDC accounts for 85.22%. |
Trading volume data (early December):
- DEX 24-hour trading volume : $26.01M, 7-day total: $218.64M (+63.91% weekly growth)
- Perpetual contracts 24 hours : $29.84M, 7-day total $159.94M (-26.14% weekly decline)
- Total lifetime DEX volume : Exceeds $10 billion
TVL volatility analysis : The 63% drop from $579M in early September to $222M in December was mainly due to market conditions, but the weekly increase of 5.85% in stablecoin market capitalization and 64% in DEX trading volume indicates that the DeFi foundation is still strengthening.
New Agreement and Partners
New agreements added in Q4 2025 :
- Morpho Lending Network (October): Top Lending Agreements Expanded to Sei
- Yei Finance TGE : CLO Token Generation Event
- Oxium DEX : Hybrid CLOB-AMM Liquidity Model
- Dawnshard : AI-powered trading card game launched on Android
- Kindred AI : "The Great Awakening" candidate list reaches 3 million registered users
Institutional and Regulatory Progress :
| event | date | Influence |
|---|---|---|
| Robinhood launches SEI | October 27 | Enhance retail channel accessibility |
| Coinbase COIN50 included | November 28 | Institutional-level index revealed |
| Japan's FSA approved | Q4 | DAU reaches a two-year high |
| REX Shares/Osprey pledged SEI ETF declaration | Q4 | Traditional financial products |
| RWA Collaboration | continued | Apollo, BlackRock (ICS USD), Laser Digital (LCF), Hamilton Lane (SCOPE), Brevan Howard Funding |
Ecosystem Efficiency Ranking : Sei ranks 4th in TVL efficiency among ecosystems, tied with Solana, Hyperliquid, and Ethereum (October 2025). x.com
On-chain data and derivatives market
Expenses and Revenue
Chain-level fees (early December):
- 24-hour chain fee : $307 (+4.9% daily growth)
- 24-hour application fee : $49,443
- Total cost for 7 days : $2,222
- Historical peak : $374,320 in daily fees (October 25th, the highest in the entire blockchain at the time).
Agreement fee contribution (top projects):
- Takara Lend : $1,033 daily fee (leading lender)
- Dragon Swap Series : $24,725 daily fee (DEX leading)
- Yei Finance : $167,696 monthly fee (across categories)
Derivatives Market Dynamics
Open interest (December 4, 2025): $93.44M (+0.60% 24 hours).
Exchange distribution :
| Exchange | Open interest | 24-hour changes | Funding rates |
|---|---|---|---|
| Binance | $24.09M | -1.83% | -0.000823% (Short position paid) |
| Bybit | not disclosed | -2.43% | +0.01% (Multiple payments) |
| Bitget | not disclosed | positive growth | +0.01% (Multiple payments) |
Liquidation Risk Diagram :
- Long position risk exposure : $2.79M cumulative liquidation is below $0.126 (support levels $0.138, $0.122)
- Short exposure : $2.73M cumulative liquidation is above $0.156 (resistance levels $0.142, $0.158)
- 24-hour settlement : Total $79,093, of which longs $59,219 (75%) indicate downward pressure.
Price Technical Analysis
Current price (December 4, UTC): $0.1405 (+0.21% 24 hours)
Technical Specifications Summary :
| index | numerical values | Signal |
|---|---|---|
| Monthly performance | -16.14% | Underperformed the crypto market (+2.60%) |
| Japanese RSI(14) | 43.05 | Mild overselling |
| Zhou RSI(14) | 35.84 | Oversold areas |
| Japanese MACD | Bar chart +0.002444 | Potential stability |
| EMA (12/26) | Prices range from | Short-term bullish crossover possible |
| 24-hour trading volume | $69.45M | -41.70% daily decline |
Key price levels :
- Key support : $0.138 ($139K liquidation cluster) → $0.122 (lower Bollinger Band)
- Key resistance : $0.142 ($438K liquidation) → $0.158 (Upper Bollinger Band)
Community sentiment and market reaction
Overall mood
The discussion on Twitter/X was predominantly positive and optimistic , with the core narrative revolving around "speed advantage" and "TradFi-DeFi bridging":
Sentiment towards technological upgrades :
- There is great anticipation for Giga's "sub-second settlement" and "parallel EVM" support for real-time markets, with the community expressing excitement using terms like "revolutionary technology" and "you're simply not ready." x.com
- Binance validator status is considered a key endorsement of Giga's speed capabilities. x.com
Kalshi Integrated Emotions :
- A strong positive buzz framed it as a "narrative upgrade," with user descriptions shifting global events from observational to participatory transactions. x.com
- The community is expressing a “new habit of awakening” – checking on-chain odds before reading the news, highlighting Sei’s low-latency value proposition.
Ecological growth sentiment :
- The positive momentum revolves around "maturation," with themes including "explosive growth" and "real traction in DeFi/RWA." (x.com )
- The community expressed its gratitude to the builders and looks forward to upcoming developments that will link growth with Sei's performance advantages.
Controversy and Challenges
No major recent controversies : No delays, issues, or controversies were found in highly engaged discussions on Twitter during November and December.
The historical event has been resolved :
- In September 2025, a vulnerability in the Kame AG protocol led to the loss of funds from connected wallets, prompting reversals and partial recovery, but there was no lasting impact in December. [External source not disclosed in detail]
- The early community discontent regarding the 2023-2024 airdrop distribution and cross-chain bridge restrictions has been resolved, and the current focus has shifted to positive developments.
in conclusion
Sei Network is achieving differentiated expansion through a three-pronged strategy of technology, application, and ecosystem . The 200,000 TPS target of the Giga upgrade and the integration of Kalshi's $11B regulatory prediction market together position Sei as an on-chain infrastructure with "Wall Street-level performance." Despite a market correction in TVL (-63%) in Q4, ecosystem vitality indicators remain strong: a peak DAU of 1.6 million in November, a 64% weekly increase in DEX trading volume, 81.5 million total users, and institutional milestones such as inclusion in Coinbase COIN50 and listing on Robinhood validate the effectiveness of the "speed advantage + TradFi bridging" strategy. Community sentiment is highly positive, with KOL consensus focusing on the paradigm shift brought about by real-time settlement and the marketization of event trading. Technically, oversold RSI and stable MACD signals suggest short-term rebound potential, but a break above the $0.142-$0.158 resistance zone is needed to confirm a trend reversal. Future focus: the implementation of the Q4 Giga upgrade, the Kalshi trading volume diversion effect, and the TVL return capability through institutional RWA cooperation.