In the process of the crypto market transitioning from frenzy to rationality and from conceptual hype to value precipitation, the blockchain ecosystem is quietly undergoing a qualitative change. In the past few years, DeFi (Decentralized Finance) has reshaped the rules of traditional finance through permissionless financial protocols, enabling capital to flow freely globally. Meanwhile, explorations in RWA on-chain are attempting to break down the barriers between the traditional financial system and the blockchain world, mapping trillion-dollar real-world assets onto the chain to further release financial efficiency.
In this transformation, the flow of capital often hints at future trends. Recently, the frequent layout in the blockchain field by WLFI, owned by the Trump family, has become a focal point of market attention. Especially the continuous investment in the Sei Network not only reflects WLFI's long-term optimism about the DeFi and RWA tracks but also mirrors traditional capital's accelerating penetration into the on-chain world, injecting new narratives and confidence into the crypto market.
Trump Family's Bet: Resonance of Capital, Technology, and "Political Premium"
According to on-chain data, WLFI has made several large-scale purchases on the Sei Network, buying Sei tokens twice in the past two months, with a total amount exceeding $225,000. Notably, WLFI is not a mere financial investor; the political influence of the Trump family behind it gives these actions deeper market significance.
In the crypto world, capital inflow often represents a bet on future expectations. When such inflow comes from capital closely related to the US political sphere, it is more likely to be interpreted as a kind of "political endorsement". The Trump family's favor towards Sei not only adds capital strength to Sei but also invisibly adds a "political premium", attracting more traditional investors' attention.
However, WLFI's entry is not blind pursuit of profit, but a strategic choice based on Sei's technological advantages and ecosystem potential in the DeFi and RWA fields. Sei is becoming a hot "new infrastructure" in the DeFi and RWA tracks with its high throughput, low cost, and financial-grade infrastructure.
Technical Field: High Throughput + Low Cost, Ideal Soil for DeFi and RWA
In the on-chain process of DeFi and RWA, the performance and cost of public chains are crucial. Sei's core advantages are reflected in its efficient and low-cost transaction environment, making it an ideal carrier for financial-grade applications:
5 Gigas per second throughput: Sei can process thousands of transactions per second, far surpassing Ethereum and most public chains. This high performance gives it significant advantages in high-frequency trading and liquidity protocols, especially suitable for DeFi's high-frequency clearing scenarios.
Native transaction matching engine: Sei's built-in on-chain transaction matching mechanism optimizes order execution efficiency, significantly reducing slippage and improving capital utilization. This technical advantage makes it more competitive in on-chain order book DEXs and RWA asset settlement.
Extremely low transaction costs: Sei's gas fees are far lower than Ethereum's, allowing DeFi and RWA projects to run at lower costs, attracting numerous developers and institutions.
These technical characteristics of Sei not only make it stand out in the DeFi track but also provide a solid foundation for mapping and circulating RWA assets on-chain.
DeFi Explosion: Focusing on Ecosystem Data
Sei's DeFi ecosystem is experiencing explosive growth. According to Messari's Q4 data report, Sei's on-chain transaction volume in the fourth quarter of 2024 reached approximately $1 billion, with 65% coming from DeFi protocols. TVL (Total Value Locked) grew by 3830.9% year-on-year, reaching $250 million. This means that even in a market environment with token price fluctuations, real capital inflow on Sei continues to rise sharply.
In terms of specific protocol performance, the DeFi activity in the Sei ecosystem continues to rise:
DragonSwap: As the flagship DEX of the Sei ecosystem, its daily average trading volume grew by 815.9% in Q4, breaking through $10.1 million, with market activity continuously climbing.
Yei Finance: A native lending protocol on Sei, it occupied 88.7% of Sei's DeFi active addresses (DAA) in Q4, with TVL exceeding 210 million SEI, becoming one of the largest DeFi platforms on the chain.
Pit Finance: As a yield aggregator, its TVL reached $12.3 million by the end of Q4, demonstrating strong capital attraction.
Notably, although Sei's token price dropped by 14.4% in Q4, its TVL in SEI terms grew by 17.1%, meaning more capital is continuously flowing into the Sei on-chain DeFi ecosystem. This positive cycle of funds and applications not only enhances Sei's financial foundation but also is expected to further support the recovery of the Sei token's value.
RWA Financialization: Bridging On-chain and Off-chain Assets
Beyond DeFi, Sei is accelerating the on-chain layout of RWA assets, constructing a connector between the real world and on-chain finance. In Sei's RWA ecosystem, multiple projects are exploring application scenarios of on-chain financial assets:
Elixir: Introducing fastUSD into the Sei ecosystem, providing on-chain stablecoin settlement services for RWA assets, enhancing the stability and reliability of on-chain financial transactions.
Filament Finance: Through on-chain liquidity protocols, providing more efficient trading and clearing capabilities for RWA assets, accelerating the mapping and circulation of traditional financial assets on-chain.
Meanwhile, mainstream trading platforms are also increasing their efforts in the Sei RWA track. The $1.5M SEI DeFi Season initiated by Binance Wallet has attracted significant attention from TradFi (traditional finance) institutions. This indicates that Sei's layout in the RWA field is gradually gaining favor from traditional capital.
Future Outlook: Potential Stock of On-chain Financial Infrastructure
In the trend of parallel explosion of DeFi and RWA, Sei is gradually establishing its position in on-chain financial infrastructure through its powerful technical foundation and ecosystem growth. In the future, with the introduction of the Giga upgrade, Sei's transaction throughput will increase by 50 times, further enhancing its competitiveness in financial-grade applications.
WLFI's continued bet on Sei is not only a recognition of its technical potential but may also herald a deep integration of on-chain finance and traditional capital on the Sei Network. As the mapping of RWA assets continues to accelerate, Sei is poised to become a core bridge between traditional finance and the DeFi world, playing an increasingly important role in the global financial landscape.
