SEI vs Ethereum: Why Investors Are Betting on Accelerated GrowthBlockchain Market Enters a Phase of Differentiation
Following the overall recovery of the crypto market in Q2 2025, certain Layer 1 projects are attracting increased attention. One such emerging player suddenly in the spotlight is the SEI blockchain, which positions itself as a high-performance solution for trading, DeFi, and Web3 applications. While Ethereum continues to struggle with scalability issues and competition from its own Layer 2 solutions, SEI bulls claim:
“This is the project that can outpace ETH in growth rate as early as Q3.”
What Makes SEI Technologically Different?
Investor optimism around SEI is rooted not just in marketing, but in specific technological advantages. Unlike Ethereum, which prioritizes maximum decentralization even at the expense of speed, SEI leverages a parallelized transaction processing engine, achieving finality in under 500ms. This not only accelerates transaction processing but also scales the performance of order books and marketplaces.
Additionally, SEI has implemented an order-based DEX model, bringing decentralized exchanges closer to the user experience of centralized platforms like Binance. This is a key differentiator: unlike Ethereum, which requires additional protocols to implement limit orders, SEI has them built into its architecture.
Ecosystem and Activity
Since the beginning of the year, more than 80 applications have launched on SEI, ranging from NFT marketplaces to derivatives platforms. According to DeFiLlama, TVL (total value locked) has surpassed $1.2 billion, more than 5x its level at the start of the year. Major exchanges like Binance, KuCoin, and Bybit have confirmed support for the blockchain, while the project team actively expands into Asia and Latin America.
Investor Dynamics and Price Expectations
SEI entered Q3 2025 trading around $0.34, and analysts see growth potential up to $0.70–$0.80 if the positive trend continues. This represents over 100% upside from current levels, whereas Ethereum, according to most forecasts, is expected to post only 15–20% gains during the same period.
Some institutional reports already classify SEI as a high-growth potential asset, alongside Solana and Aptos. This signals a possible market shift in the coming months.
Risks: Realism Over Hype
However, key risks remain:
Competition from Ethereum L2: Solutions like Arbitrum and Base deliver high speed while maintaining ETH compatibility.
Hype Cyclicality: Surges in interest for new Layer 1s can be short-lived.
Dependence on DeFi: SEI is currently attractive for developers and traders but still lacks everyday applications.
Conclusion
SEI indeed has technological advantages that enable rapid scaling. Its architecture makes it especially promising in the context of growing DEX and Web3 adoption. While Ethereum remains the leader in terms of infrastructure and trust, SEI could outpace ETH in growth rate during Q3 2025, particularly if it sustains its expansion and avoids technical or market setbacks.
