Sei's Strategic Xiaomi Partnership and Rising Network Activity: A Catalyst for Long-Term Price Momentum?

In the ever-evolving blockchain landscape, Sei (SEI) has emerged as a compelling case study in strategic innovation. The network's recent partnership with Xiaomi, coupled with surging on-chain metrics and institutional adoption, has positioned it as a potential disruptor in mass crypto onboarding. This analysis evaluates whether these developments-hardware-level user acquisition, TVL and trading volume growth, and institutional catalysts-justify a bullish investment thesis for SEI in the near-to-mid term.

Hardware-Level User Acquisition: Xiaomi as a Gateway to Mass Adoption

Sei's partnership with Xiaomi represents a paradigm shift in crypto onboarding. According to a report by , Sei announced in December 2025 that a next-generation crypto wallet and discovery app will be pre-installed on all new Xiaomi smartphones sold outside mainland China and the U.S. This move leverages Xiaomi's global distribution network, which sells approximately 168 million smartphones annually, to deliver Web3 tools directly to users at the hardware level.

The app's design prioritizes accessibility: one-click onboarding via Google or Xiaomi ID, MPC wallet security, and support for peer-to-peer and consumer-to-business transactions. By eliminating the friction of downloading separate apps, Sei and Xiaomi aim to onboard millions of first-time users in regions with existing crypto adoption, such as Europe, Latin America, Southeast Asia, and Africa. In markets like Greece and India, where Xiaomi holds 36.9% and 24.2% market share, respectively, this partnership could catalyze mainstream adoption.

Beyond the app, the collaboration extends to stablecoin payments. By Q2 2026, Xiaomi plans to enable USDC-based purchases of smartphones and electric vehicles across its 20,000+ global retail stores, starting in Hong Kong and the EU. This integration of blockchain into everyday commerce could drive utility for SEI, reinforcing its value proposition as a payments layer.

Surging On-Chain Activity: TVL, Trading Volume, and Ecosystem Growth

Sei's on-chain metrics underscore its growing relevance. As of Q2 2025, the network's total value locked surged 67.8% to $609.4 million, driven by protocols like Yei Finance, Sailor, and Takara Lend, which collectively accounted for over half of the liquidity. . Simultaneously, SEI's trading volume spiked nearly fivefold to $2.23 billion in the first half of 2025, fueled by Sei V2 upgrades, institutional interest, and ecosystem expansion.

User engagement has also outpaced competitors. A16z's September 2025 report revealed that Sei overtook Sui, Polygon, and Aptos in active addresses, signaling robust network usage. This growth is critical for long-term price momentum, as active users and liquidity providers form the backbone of a sustainable blockchain economy.

Institutional Catalysts: From Tokenized Credit to ETFs

Institutional adoption has further accelerated Sei's trajectory. In October 2025, BlackRock and Hamilton Lane launched a $1 trillion tokenized private-credit fund on the Sei Network, bridging DeFi and traditional finance. This partnership highlights Sei's appeal as a scalable infrastructure for institutional-grade applications.

Regulatory developments have also bolstered optimism. Two U.S. ETFs with SEI exposure debuted in October 2025, capitalizing on a regulatory gap during a government shutdown. While the SEC's broader ETF approval process remains uncertain, these early entrants signal growing institutional confidence in SeI's utility and compliance framework.

Price forecasts reflect this momentum. Analysts predict SEI could reach $0.38 by year-end 2025, $0.73 in 2027, and $2.08 by 2030, contingent on sustained institutional adoption and favorable regulation.

Conclusion: A Bullish Case for SEI

Sei's partnership with Xiaomi represents a unique confluence of hardware-level user acquisition, surging on-chain activity, and institutional validation. By embedding crypto tools into one of the world's largest smartphone ecosystems, Sei is poised to onboard hundreds of millions of users-many of whom are first-time participants in Web3. Meanwhile, TVL and trading volume growth, coupled with institutional partnerships and ETF launches, reinforce the network's scalability and real-world utility.

For investors, these factors present a compelling case for near-to-mid-term bullish positioning. However, success hinges on execution: the app's user experience, the pace of stablecoin adoption, and regulatory clarity will determine whether Sei's potential translates into sustained price appreciation. For now, the data suggests Sei is not just a speculative play but a foundational player in the next phase of blockchain mass adoption.