Sei sets mid-2026 deadline to become EVM-only; users must migrate Cosmos assets
Sei Network will fully abandon its dual Cosmos–EVM architecture and become an EVM-only chain by mid-2026 under the SIP-3 transition plan. The network will implement the change in three phases (versions 6.3–6.5) from January to March 2026. Key changes: v6.3 (January) enables staking via the EVM; v6.4 (February) disables inbound IBC transfers—preventing bridging of Cosmos-specific tokens like ATOM and USDC.n into Sei; v6.5 (March) removes Sei’s native oracle codebase and replaces it with providers such as Chainlink, API3, and Pyth. Users holding Cosmos-native assets on Sei — notably about $1.4 million in USDC.n via Noble — must migrate to native USDC or otherwise risk losing access after late March 2026. Small swaps can be done on DEXs (DragonSwap, Symphony) though slippage may vary; larger migrations can use a migration tool that routes assets via Polygon using Circle’s CCTP v2. Sei Labs says removing hundreds of thousands of lines of Cosmos code will improve performance and could enable up to 200,000 TPS. SEI token has ~ $800M market cap; Robinhood listed SEI in Oct 2025 and there’s an unapproved spot SEI ETF filing by Canary Capital. Traders should act on migration guidance, unwind Cosmos-based positions on Sei, and monitor liquidity and slippage during conversion windows.
Neutral
The announcement is operational and protocol-focused rather than a market-moving partnership or new funding round, so its immediate directional effect on the broader crypto market is limited. Short-term trading risks are tangible for holders of Cosmos-native assets on Sei: forced migrations, disabled IBC inbound transfers, potential slippage and temporary liquidity stress could cause sell pressure on USDC.n, SEI, and related DEX liquidity pools. That creates short-term downside risk for affected pairs and increased volatility. However, the long-term narrative is potentially constructive: streamlining to an EVM-only chain and replacing bespoke oracle code with established providers could improve performance, developer adoption, and composability with the wider EVM ecosystem — factors that may be bullish for SEI over months to years if the upgrade succeeds and throughput/DeFi activity improves. Historical parallels: previous chains that removed cross-architecture complexity (or completed major migrations) saw short-term volatility and liquidity dislocations but eventual normalization and, in successful cases, improved developer activity. Traders should (1) prioritize migrating Cosmos-native assets before deadlines, (2) avoid large conversions at thin liquidity moments, and (3) monitor on-chain flows, DEX depth, and SEI price action around upgrade releases.