Sei TVL Collapses From $626M to $41M, But Users Aren’t Leaving: Here’s Why

 Sei Network enters a reset phase as TVL falls to $41.6M from a $626M peak, while daily users hold near 1M–1.2M.

Sei Network is moving through a quieter period as core activity holds while capital metrics stay under pressure.

Recent on-chain data shows users are still active, and trading is still taking place across apps. 

Yet total value locked has fallen sharply from its earlier peak, and new inflows appear limited. 

The network also continues to post fees and volumes, but revenue capture remains modest.

This mix places Sei in what market watchers describe as a “reset phase” rather than a growth phase.

User Activity Holds but Expansion Slows

Daily active users have moved lower from more than 2 million earlier in April. 

Recent figures place that range near 1 million to 1.2 million. The drop points to slower momentum, even as overall usage remains visible.

Returning users still make up most of the activity on the network. That shows the existing base is still engaged and still using Sei apps. 

New user growth, however, has cooled, and that limits signs of near-term expansion.

The balance between retention and acquisition now matters more for the network. A chain can stay stable when current users remain active.

It becomes harder to grow fast when fresh demand weakens.

Sei’s latest user mix points to that pattern. The core audience is still present, and that helps keep activity steady.

At the same time, softer onboarding shows the pace seen earlier in April has eased.

TVL Falls as Liquidity Conditions Tighten

The clearest change appears in liquidity and capital flow. 

Sei’s TVL stands near $41.6 million, down from about $626 million in July 2025. That decline leaves the network far below its earlier capital peak.

TVL is often used to track how much capital is committed to on-chain products. 

A move from $626 million to $41.6 million marks a large reset in that measure. It also shows a weaker pace of capital deployment across apps.

Bridged liquidity remains higher at about $251 million, and stablecoin market cap is around $179 million. Those figures show funds are still present across the broader ecosystem. 

Even so, the lower TVL points to less capital being used inside Sei-based protocols.

This gap between available liquidity and deployed liquidity is part of the current picture. 

Funds may still sit near the network, but active positioning has slowed. That keeps growth metrics softer even while user activity continues.

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Trading Stays Active While Revenue and Supply Stay in Focus

Trading activity has not disappeared during this slower phase. DEX volume reached $6.55 million over 24 hours, and perpetuals volume hit $12.25 million. 

App fees came in at $11,155, while app revenue was $2,872.

These numbers show usage is still present, but protocol-level revenue remains limited.

Activity across trading venues is still visible, and that supports ongoing engagement. Yet the lower revenue figure shows value capture remains narrow.

Sei price has traded between $0.055 and $0.057. 

The market cap is about $369 million, while fully diluted valuation stands near $549 million. That difference keeps attention on future token supply.

A wider gap between market cap and FDV can matter over time. 

More tokens may still enter circulation, and traders often watch that closely. For now, Sei shows steady use, weaker inflows, and modest revenue, which fits a reset phase.

The post Sei TVL Collapses From $626M to $41M, But Users Aren’t Leaving: Here’s Why appeared first on Live Bitcoin News.