Ethereum News Today: Sei Shifts to EVM-Only Model to Boost Ethereum Interoperability

Sei Network (SEI) is undergoing a significant governance shift as the community debates a proposed transition to an Ethereum Virtual Machine (EVM)-only model, effectively phasing out native Cosmos accounts. This move is intended to enhance interoperability with Ethereum-based protocols and align the blockchain with broader industry trends [1]. The change could streamline smart contract development and improve compatibility with existing decentralized finance (DeFi) tools, particularly given recent integrations such as MetaMask’s support for Sei’s Layer 1 blockchain [1]. This integration is expected to expand user access and open new pathways for DeFi adoption on the network.

The governance proposal reflects a broader trend in the blockchain space where projects aim to bridge the gap between Cosmos-based chains and the dominant EVM ecosystem. By prioritizing EVM compatibility, Sei is positioning itself to attract developers and users already familiar with Ethereum, reducing the learning curve and technical friction associated with cross-chain interactions.

A major event on the horizon could influence short-term market dynamics. On August 15, 2025, 55.56 million SEI tokens will be unlocked, which may boost liquidity and introduce volatility into spot markets [1]. This unlock could act as both a catalyst and a risk, depending on how the broader market and governance community respond.

Currently, SEI is trading at $0.3112 with a market capitalization of $1.80 billion and a 24-hour trading volume of $197.8 million. Despite a 2% gain over the past 24 hours, the token remains down 21.46% year-to-date. However, over the past year, SEI has recorded a 15.88% gain, supported by network upgrades and growing ecosystem adoption. From a technical standpoint, the token is bouncing from a key support zone near $0.30 and showing signs of short-term bullish momentum as it approaches $0.35 and $0.50 resistance levels [1].

The proposed EVM-only migration and MetaMask integration represent pivotal steps in Sei’s strategic evolution. While the token unlock on August 15 could create short-term uncertainty, the long-term implications of the governance shift are likely to shape the network’s future trajectory and developer engagement.

Source: [1] Sei Governance Eyes EVM-Only Migration, Phasing Out Native Cosmos Accounts (https://coinmarketcap.com/community/articles/689b7b1d1f5b37446746a40a/)