Sei Network Enters 'Quiet Reset' Phase as TVL and Capital Inflows Decline

Sei Network has entered a period of stagnation described as a 'quiet reset' phase, as on-chain metrics signal a slowdown in 2026. In a significant technical shift, the network launched the v6.4 mainnet update, marking the beginning of its strategic exit from the Cosmos ecosystem. This update enables future restrictions on IBC transfers, effectively forcing asset holders to migrate to the EVM environment before a looming governance deadline. This transition occurs as the network faces a decline in Total Value Locked (TVL) and weakening capital inflows. While user activity remains relatively stable, the mandatory migration toward an EVM-centric model adds a layer of complexity to the near-term outlook for the SEI token. Market participants are now focused on whether this technical pivot can revitalize liquidity and restore the network's competitive edge.