Blockchain platform Sei achieves new high of $115 million TVL, fueled by growing popularity of Yei Lending application
Sei Blockchain Surges in DeFi Ecosystem
Sei, a high-speed, EVM-compatible blockchain focused on decentralized trading applications, has been experiencing significant growth in the DeFi sector. With a focus on accelerating market activity and instant settlement, Sei has reached a market cap of $1.69 billion and ranks #48 among cryptocurrencies as of mid-2025.
The Total Value Locked (TVL) in Sei-based DeFi has grown substantially, driven by top decentralized finance applications such as Yei Finance and SiloStake. These platforms, identified as leading DeFi projects on the network, contribute the bulk of locked assets in the ecosystem. The TVL increase aligns with the network's emphasis on quick, smooth DeFi transactions, offering an attractive alternative to slower, congested blockchains like Ethereum.
Yei Finance, a lending dapp forked from Aave V3, has been a key contributor to this growth. The TVL surge on Sei has been mainly driven by Yei Finance, the largest DeFi app on the chain. On September 5, Sei registered record daily inflows with nearly $10 million worth of tokens being deposited on its dapps, with a significant portion going to Yei. As a result, the total liquidity on Yei is at a record $72 million.
SiloStake, the second-largest DeFi app on Sei blockchain, allows SEI holders to stake their coins and target an annual percentage rate (APR) of 4%. The TVL of SiloStake has surged over 450% in the past month, and on September 5, the TVL of SiloStake crossed $30 million. Staking SEI on SiloStake rewards users with iSEI tokens, which can be used for exploring more yield opportunities in DeFi.
Tether's stablecoin, USDT, and wSEI are the most deposited tokens in Sei pools, along with USDC. Recently, USDT's share has doubled over the last two days on Sei, dominated by record inflows into the Yei platform.
Sei's ecosystem growth highlights also include integration with key tools like the Backpack Exchange and Wallet, incorporating native USDC support on Sei, which simplifies trading and settlement and increases usability for both retail and institutional users.
The anticipation of the upcoming Giga upgrade (expected late 2025) is another factor contributing to Sei's growth. This upgrade is projected to boost performance 50-fold, positioning Sei as one of the fastest Ethereum Virtual Machine (EVM) compatible blockchains, further enhancing its competitive edge for on-chain finance applications.
With these developments, Sei is poised to continue its growth and establish itself as a significant player in the DeFi sector.
News of daily finance influxes have been surging on the Sei blockchain, with a significant portion attributed to investing in DeFi applications like Yei Finance and SiloStake. The growing TVL on Sei blockchain, primarily driven by these two platforms, indicates a preference for fast, smooth DeFi transactions over slower networks like Ethereum, fostering technology innovation in the decentralized finance industry.
