according to the materials of the site - CaptainAltcoin
SEI demonstrates strong results and signals lately, at least at first glance. Usage is climbing, activity continues to set new records, and the network feels busy in a way that many level 1s would envy. A closer look at the latest Messari report on the state of SEI for the third quarter of 2025, presented by analyst Fabius DeFi, shows a more nuanced picture. Growth is real, momentum is visible, however, one key metric continues to lag behind the others.
Daily activity on SEI has reached a level that stands out even in a crowded market. According to Fabius DeFi, daily active addresses surged by 93.5% quarter-over-quarter, reaching 824K. Transactions per active address increased by 87.1%, totaling about 2 million per day. Five consecutive quarters of growth suggest something more durable than a temporary spike.
SEI's price action often attracts attention first, but usage trends tell a deeper story. SEI has focused on speed and distribution, and the numbers reflect this strategy. Users are not just appearing; they are engaging more frequently, indicating the formation of habits rather than fleeting experiments.
Surface-level metrics appear bullish, although capital tells a different story. The total value locked decreased by 25% quarter-over-quarter to $455.6 million. The outflow of stablecoins followed the same direction, reinforcing the idea that SEI's capital remains sensitive to broader market cycles.
Discussions around SEI's value often suggest that usage and capital move together, although this quarter challenges that assumption. Trading activity increased even as TVL contracted. The average DEX spot volume rose by 75%, totaling around $43 million per day, indicating trader activity without the allocation of long-term liquidity. This gap between activity and capital stickiness remains a key tension in SEI's narrative.
Games have quietly become one of the strongest drivers of on-chain activity. Fabius DeFi points to 116M gaming transactions and a sharp increase in daily active addresses related to gaming. These figures suggest that games have quietly become one of the strongest drivers of on-chain activity. Fabius DeFi points to 116M gaming transactions and a sharp increase in daily active addresses related to gaming. These figures suggest that SEI primarily builds usage, allowing users to form habits before capital fully follows it.
This approach differs from the heavy incentive cycles of DeFi that quickly drain liquidity and lose it just as fast. Gaming activity creates repetition and familiarity, which may explain why SEI continues to increase the number of transactions even during periods of capital outflow.
DeFi activity remains important, although the landscape is changing. YeiFinance continues to be the largest protocol by TVL, despite a 41.7% decline. TakaraLend moved in the opposite direction, increasing by 48.4%, largely due to points and incentive programs.
Fabius DeFi views this as a stage of selection. Incentives may temporarily attract liquidity, but retention after the waning of rewards determines which protocols will matter in the long term. The narratives around SEI's value related to the strength of DeFi may depend less on the TVL headline and more on which applications support user interaction without ongoing subsidies. Primarily, it builds usage, allowing users to form habits before capital fully follows it.
This approach differs from the heavy incentive cycles of DeFi that quickly drain liquidity and lose it just as fast. Gaming activity creates repetition and familiarity, which may explain why SEI continues to increase the number of transactions even during periods of capital outflow.
DeFi activity remains important, although the landscape is changing. YeiFinance continues to be the largest protocol by TVL, despite a 41.7% decline. TakaraLend moved in the opposite direction, increasing by 48.4%, largely due to points and incentive programs.
Fabius DeFi views this as a stage of selection. Incentives may temporarily attract liquidity, but retention after the waning of rewards determines which protocols will matter in the long term. The narratives around SEI's value related to the strength of DeFi may depend less on the TVL headline and more on which applications support user interaction without ongoing subsidies.
Token mechanics demonstrate one of the most constructive events. Monthly unlocking and investment pressure fell from 219.7M SEI to 113M SEI. The APY rate rose to about 6%, creating a positive real yield for two consecutive quarters.
Lower selling pressure combined with higher yield rates often creates space for the development of long-term narratives. Fabius DeFi notes that these conditions support infrastructure creation rather than short-term speculation, which may matter more than just price movements in the early stages of network expansion.
The broader thesis remains unchanged. Updates on Giga, next-generation CLOB, and AI-focused applications form the foundation of SEI's roadmap for 2026. Execution now depends on converting traffic into stablecoin liquidity and ultimately into sticky TVL.
The price of SEI may continue to reflect this contradiction between visible usage and cautious capital. The network is already moving quickly and attracting activity. The next chapter depends on whether this activity acquires durable economic weight. Observing how SEI bridges this gap may indicate where the story goes next.
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