The Next Big Bet for Traditional Investors

Amid fierce competition among Layer 1 blockchains, Sei Network is steadily carving out its position with remarkable progress, both in terms of technical performance and strategic vision.

From boasting one of the fastest transaction speeds in the market to bold moves like considering an acquisition of genetic testing firm 23andMe, Sei is rapidly becoming a standout in the eyes of institutional investors.

Canary Capital Files for SEI Staking ETF, Paving the Way to Wall Street

In a pivotal development, Canary Capital – a Delaware-based investment firm, has officially filed for approval of a staking ETF tied to SEI. If approved by the U.S. Securities and Exchange Commission (SEC), this would mark one of the first staking ETFs based on a Layer 1 blockchain, representing a major leap toward integrating Sei into the traditional financial system.

Combining SEI staking yields with a regulated financial product could usher in a new era for digital asset adoption. It not only enhances liquidity over the long term but also bolsters Sei’s legitimacy in the eyes of major institutional investors.

Sei has also caught the attention of World Liberty Financial (WLFI) – an investment organization with ties to the family of U.S. President Donald Trump. 

According to data from Onchain Lens, WLFI recently spent 775,000 USDC to acquire approximately 4.89 million SEI tokens at an average price of $0.158 per SEI, during a broader market correction, indicating a long-term conviction in Sei Network. WLFI’s current SEI holdings have grown to nearly 6 million tokens.

This move is part of WLFI’s broader $343 million crypto portfolio, which includes blue-chip assets such as Ethereum (ETH), Wrapped Bitcoin (WBTC), Chainlink (LINK), Avalanche (AVAX), AAVE, alongside emerging tokens like MOVE, ENA, ONDO, MNT, and SEI.

Although the portfolio is currently down by roughly $109 million, WLFI’s allocation into SEI, alongside other established assets, underscores the rising recognition and institutional appeal SEI is beginning to command.

Sei v2 Upgrade: A Direct Challenge to Solana and High-Performance Layer-1

From a technical standpoint, Sei continues to solidify its position through the release of Sei v2, which introduces full EVM compatibility and further optimizes parallel transaction processing. With a transaction finality time of under 500 milliseconds, Sei now ranks among the lowest-latency blockchains, rivaling, and in some real-world tests, even outperforming Solana.

Sei v2 also opens up a broader ecosystem for developers by allowing seamless deployment of Ethereum-native smart contracts. This change has attracted a wave of dApps and blockchain games to migrate to Sei. The rapid growth of projects like Seiyan DEX, PixelForge (a metaverse game), and Arithmetica (a decentralized data protocol) stands as strong evidence of this momentum.

In early 2025, Sei Labs also rolled out a major overhaul to its tokenomics model, aiming to reshape incentive structures across the entire network. Previously, a significant share of SEI token emissions went toward staking rewards—a model that supported network security but created immediate sales pressure as rewards were regularly offloaded to the market.

The updated tokenomics now prioritize long-term ecosystem alignment. A larger portion of SEI tokens is being redirected toward builder incentives, open-source funding, and rewards for protocols that generate sustainable liquidity, transaction volume, and user engagement. This shift encourages developers and dApp operators to stay committed to Sei rather than extract short-term value.

As a result of these improvements, Sei’s Total Value Locked (TVL) has surged past $382 million, according to DefiLlama – nearly a 5x increase from the start of Q1 2025. This spike is fueled by a wave of new DeFi projects launching on Sei and growing institutional interest in the ecosystem.

These numbers show better liquidity and Sei’s growing appeal in the Layer-1 race. Sei’s low market cap makes it a strong contender in the next Layer-1 growth wave.

From Financial Layer-1 to DeSci Infrastructure

On March 27, 2025, CoinDesk reported that the Sei Foundation, the nonprofit organization behind Sei Network, is considering acquiring 23andMe, the consumer genetic testing company currently filing for Chapter 11 bankruptcy. Sei’s goal is to bring the genetic data of over 15 million users on-chain via Sei Network, ensuring personal data ownership and enhancing information security.

If successful, the project would mark one of the boldest moves in the decentralized science (DeSci) space to date. The Sei Foundation envisions a future where genomic data is no longer controlled by centralized intermediaries but instead governed directly by users through blockchain infrastructure. The initiative also opens the door for Sei’s broader application in healthcare and biomedical research.

The Sei Foundation is in the process of placing its boldest DeSci bet yet.@Sei_FND is officially exploring the acquisition of @23andMe to defend the genetic privacy of 15 million Americans and ensure their data is protected for generations to come.

We believe user data… pic.twitter.com/c06R2QPyff

— Sei 🔴 (@SeiNetwork) March 27, 2025

Prior to this, the Sei Foundation had already launched a $65 million grant fund dedicated to DeSci projects building on Sei Network. This strategic move aims to expand Sei’s real-world utility beyond DeFi into areas such as medical data, scientific research, and AI integration.

News of the potential 23andMe acquisition sent the SEI token up by roughly 3% shortly after the announcement, before slightly correcting. The price action reflects the market’s optimism about Sei’s broader vision and confidence that blockchain can serve as a trustworthy infrastructure for storing and safeguarding sensitive personal data.

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