Recently, Chinas online communities and some KOLs have been discussing a series of major moves that Sei ($SEI) may make in the future, especially about Seis upcoming Giga upgrade, and the discussion has almost reached an explosive growth. The market enthusiasm for Sei has declined in the past period of time, but now the market enthusiasm has rekindled. So, what is driving this shift? Messaris recently released Q4 report provides the answer, and the report deeply analyzes the key trends, technological breakthroughs, and challenges facing Sei in its future development. This report not only reveals Seis continued performance in the field of DeFi and blockchain games, but also provides deep insights into how Sei can stand out in the industry competition. Lets take a deeper look together.
The dual drive of DeFi and blockchain games
Messaris Q4 report provides a detailed analysis of Seis outstanding performance in the fields of DeFi and blockchain games. Seis unique design uses the cross-chain technology of Cosmos SDK. With its efficient consensus mechanism and low latency characteristics, it has become an ideal platform for DeFi and blockchain games. Specifically, Seis total transaction volume in Q4 2023 reached approximately US$1 billion, of which DeFi protocols accounted for more than 65%. In terms of decentralized exchanges (DEX) and automated market makers (AMM) protocols, Seis transaction volume has an annual growth rate of nearly 85%, which is significantly higher than the average growth rate of similar projects.
Especially in the field of DeFi, Seis efficient exchanges (such as SeiSwap) and derivatives trading platforms (such as SeiFutures) have performed well, attracting a large number of users and capital inflows. The Messari report pointed out that Seis smart contract execution speed is about 5 times that of Ethereum, and its transaction fees are less than 70% of Ethereum, making Sei the first choice for many institutions and developers. The total locked-in value (TVL) on the Sei platform also saw a significant increase in Q4 2023, reaching US$250 million, a year-on-year increase of nearly 120%.
In the field of blockchain games, Sei has become the preferred platform for multiple blockchain game projects with its high-throughput transaction capabilities. Messari predicts that by the end of 2024, Seis transaction volume in the gaming field will increase by more than 200%. Especially for game applications that require fast and high-frequency transactions, Seis efficient parallel computing and low-latency network greatly improve user experience and transaction smoothness. Seis blockchain game ecosystem is expected to attract more developers and players, further promoting the development of Seis ecosystem.
Giga Upgrade: A Technological Leap and Performance Improvement
Messari specifically mentioned that Seis Giga upgrade is a key node for its future development. The Giga upgrade not only provides a huge breakthrough in technology, but will also make Sei more competitive in the market in the next few years. According to the report, the Giga upgrade will further optimize Seis performance by improving the consensus mechanism and increasing network throughput. It is expected that after the upgrade, Seis TPS (transactions per second) will increase to twice the current level, reaching 10,000 TPS, which is enough to meet the needs of large-scale enterprise applications.
One of the core technologies of the Giga upgrade is the introduction of a new distributed verification mechanism, which will reduce latency between consensus nodes and increase the speed of transaction verification. This move enables Sei to support more complex decentralized applications and improve its cross-chain interoperability. Messari also pointed out that the Giga upgrade will enhance the Sei networks ability to handle high-concurrency transactions, which means that Sei will not only better support existing DeFi applications, but will also provide more reliable blockchain solutions for enterprise-level users.
After the Giga upgrade is completed, Sei expects to attract more enterprise-level customers worldwide, especially in the fields of finance, supply chain and the Internet of Things. The report pointed out that Sei will attract at least 20 leading global institutional customers in 2024, including multinational banks and logistics companies, and it is expected that these cooperations will bring Sei at least US$500 million in new market share.
Cross-industry expansion: promoting industry applications
In addition to DeFi and blockchain games, Messari also pointed out that Sei Labs is actively promoting the application of Sei in non-financial industries. In particular, in 2023, Sei successfully cooperated with the worlds leading logistics companies and e-commerce platforms to use Seis blockchain technology to optimize cross-border supply chain management. This cooperation is expected to bring Sei more than $500 million in new market share in the next five years.
Seis potential in the field of digital identity authentication and data privacy cannot be ignored. The Messari report specifically mentioned that Sei is working with a number of global digital identity solution providers to promote the application of blockchain technology in digital identity authentication and personal data protection. As the focus on data privacy and security increases, Seis layout in this field will bring it more industry opportunities.
In addition, Sei is actively deploying the Internet of Things (IoT) industry, providing more secure and efficient data exchange solutions for IoT devices through its efficient network architecture. Messari expects Sei to become one of the main blockchain platforms in the IoT field within the next three years.
Challenges and opportunities: a balance for future development
Although Sei has made remarkable achievements in technological innovation and ecological expansion, it still faces many challenges in the future. Especially in the increasingly competitive blockchain industry, Sei needs to continue to maintain its technological advantages and promptly resolve potential security risks and performance bottlenecks. Messari specifically mentioned that Sei will face pressure in balancing network security and scalability, especially after the Giga upgrade. How to maintain the stability and security of the network will be the key to its technological development.
Despite this, Messari is optimistic about Seis future development. The report points out that the Sei team has demonstrated strong adaptability and technological innovation capabilities, and its layout in cross-industry applications will make it occupy an increasingly important position in the blockchain field. With the advancement of Giga upgrades, Sei will be able to better meet the needs of various industries and bring it a wider range of application scenarios.
Conclusion: The future is full of possibilities
According to Messaris Q4 report, Sei not only shows great potential in technology, but also continues to innovate in ecological expansion. The arrival of the Giga upgrade will provide Sei with more powerful technical support, allowing it to cope with the challenges of more industry applications in the future. Seis future will not be limited to DeFi and blockchain games. It may become a core platform leading the blockchain industry and promote the reshaping of the industry landscape.
For investors, developers and ordinary users, Sei is undoubtedly a project worthy of long-term attention. With the continuous deepening of technology, ecology and industry applications, Sei is expected to become a shining star in the blockchain industry and lead the industry into a new chapter. Are you ready to welcome the new blockchain landscape brought by Sei?
Messari Sei Q4 report original text: messari.io/report/state-of-sei-q4-2024
