Can Sei Network Disrupt Institutional Onchain Finance in 2026?

The blockchain landscape in 2026 is defined by a race to scale, secure institutional trust, and bridge traditional finance with decentralized infrastructure. Among the contenders, Sei Network has emerged as a formidable player, leveraging its Giga upgrade, EVM compatibility, and real-world asset (RWA) partnerships to position itself as a high-performance Layer-1 solution for institutional-grade onchain finance. But can it truly disrupt the market, or will challenges like token unlocks and competition from Solana and Aptos derail its ambitions?

The Giga Upgrade: A Technical Leap for Scalability

Sei's Giga upgrade, launched by the end of 2025, marks a pivotal step in its journey to become the fastest EVM-compatible blockchain. The upgrade targets 200,000 transactions per second (TPS) and sub-400ms finality, achieved through an asynchronous execution model and the Autobahn consensus protocol according to Sei's documentation. These metrics outpace Solana's theoretical 100,000 TPS under stress testing according to CoinShares and rival Aptos' internal benchmark of 160,000 TPS according to CoinMarketCap. By prioritizing parallelized transaction processing and anti-front-running mechanisms, Sei addresses critical pain points for DeFi and institutional applications, such as slippage and latency as reported by OurCryptoTalk.

EVM compatibility further broadens its appeal, allowing developers to deploy existing Ethereum-based protocols without rewriting code. This strategic alignment with the Ethereum ecosystem reduces friction for institutional adoption, particularly for firms seeking to tokenize real-world assets (RWAs) without sacrificing interoperability according to AltcoinBuzz.

Institutional Adoption: From ETFs to Regulated Partnerships

Sei's institutional traction has accelerated in 2026, driven by regulated financial products and strategic alliances. The network's inclusion in the Coinbase 50 Index as reported by OurCryptoTalk and the launch of the Canary Spot Staked SEI ETF, approved by the U.S. SEC in September 2025 according to AltcoinBuzz, signal growing institutional confidence. These products not only provide price exposure but also staking rewards, creating a dual-value proposition for investors.

Regulated entities like Vanguard and CoinShares have further cemented Sei's credibility. Vanguard's Digital Infrastructure & Crypto ETF (DIME) and CoinShares' Staked SEI ETP as reported by OurCryptoTalk bring institutional-grade liquidity and governance to the ecosystem. Meanwhile, partnerships with Xiaomi-integrating a finance app into its mobile ecosystem as reported by OurCryptoTalk-and Circle-onboarding $62 billion in USDC liquidity according to AltcoinBuzz-highlight Sei's ability to bridge blockchain with real-world use cases.

RWA Partnerships: Bridging Traditional and Digital Finance

Sei's focus on RWAs has positioned it as a critical infrastructure layer for tokenizing traditional assets. By Q4 2025, nearly $30 million in RWAs had been tokenized on the network within two months, supported by institutions like BlackRock, Hamilton Lane, and Apollo according to Sei's blog. This growth is underpinned by Sei's parallelized EVM infrastructure, which enables high-speed, institutional-grade execution for assets ranging from real estate to commodities according to Sei's blog.

The network's Total Value Locked (TVL) reached $612.11 million in late 2025 according to OKX, a 60x increase from earlier in the year according to DEXTools. This surge reflects strong demand for RWAs, which grew by 260% in the first half of 2025 according to OKX. By integrating Chainlink's CCIP for cross-chain interoperability according to AltcoinBuzz, Sei further enhances its appeal for institutional clients seeking to tokenize and trade assets across 61 networks.

Market Metrics: TVL, TPS, and Valuation Dynamics

Sei's TVL of $207 million as of December 2025 according to DEXTools-a 20x increase from $10 million earlier in the year according to OurCryptoTalk-underscores its rapid growth. However, its TVL-to-market-cap ratio of 2.35 suggests the network is overvalued relative to its locked assets according to CoinMarketCap. This ratio contrasts with Solana's $111.35 billion market cap according to DEXTools, despite Solana's TVL growing by only 0.8% in 2025 according to PanewsLab.

Aptos, meanwhile, saw a 290% TVL increase in December 2025 according to RiseIn, but its internal TPS benchmarks (160,000 according to CoinMarketCap) lag behind Sei's post-Giga performance. Solana's dominance in DEX volume ($1.52 trillion in 2025 according to Sei's blog) remains unmatched, but its ecosystem has faced challenges retaining users post-MEME coin market cooling according to PanewsLab. Sei's focus on institutional-grade features-such as native order matching and batch auctions-differentiates it in a crowded market as reported by OurCryptoTalk.

Risks and Competition: Token Unlocks and Ecosystem Maturity

Despite its strengths, Sei faces headwinds. Token unlocks have already released 63% of its supply according to Artemis Analytics, creating downward pressure on the SEI token. This liquidity risk could undermine price stability, particularly if institutional demand slows.

Competition from Solana and Aptos remains intense. Solana's ecosystem maturity, including ZK Compression and cross-chain integrations according to DEXTools, provides a robust foundation for long-term growth. Aptos' parallel execution model according to RiseIn also challenges Sei's TPS claims, though its TVL growth has been volatile.

Conclusion: A Disruptive Force with Caveats

Sei Network's Giga upgrade, institutional adoption, and RWA partnerships position it as a disruptive force in onchain finance. Its technical capabilities rival those of Solana and Aptos, while its focus on institutional-grade infrastructure addresses a critical gap in the market. However, token unlocks and ecosystem competition pose significant risks.

For Sei to succeed in 2026, it must sustain institutional momentum, manage token supply dynamics, and continue innovating in RWA tokenization. If it can do so, the network's high TPS, EVM compatibility, and growing TVL could cement its role as a cornerstone of institutional onchain finance.