The Sei Network is an upcoming layer-1 blockchain aimed at high-performance trade and DeFi apps. SEI trades at about $0.12 as of January 2026, in line with recent market movements. The SIP-3 update, scheduled for late March 2026, is a significant change that will make the network’s architecture EVM-compatible.
This change has many wondering how it will affect SEI’s value, especially whether it may spark a rally towards higher price objectives in 2026. Analysts’ projections differ widely because of factors such as network adoption, token unlocks, and the broader market mood.
This article goes into detail about the update, SEI’s present market position, a range of predictions for 2026, and how the upgrade could help the market move in a positive direction.
The SIP-3 Upgrade: Goals and a Schedule
The SIP-3 upgrade is a significant change for Sei Network that the ecosystem agreed to in 2025 and will be put on the mainnet in late March 2026. The main goal is to stop supporting Cosmos-native assets, which would turn Sei into an EVM-only chain.
This change makes it impossible to work with protocols like CosmWasm. Instead, it focuses on integrating with the Ethereum Virtual Machine to make it easier for Ethereum-based apps and developers to work together.
In a January 7, 2026, release, Sei Labs stressed how important it was to “Check your Sei wallet: if you hold USDC.n (USDC via Noble), you should move to native USDC before the end of March 2026.” The SIP-3 upgrade, slated for the mainnet in late March, will turn Sei into an EVM-only chain, meaning Cosmos-native assets like USDC.n won’t work.
At that time, there was more than $1.4 million in USDC on the network, indicating how significant the changes needed to be. This upgrade aligns with Sei’s goal of making the system more scalable. It could lead to further improvements, such as the Sei Giga upgrade, which aims for finality in under 400 milliseconds and up to 200,000 transactions per second through parallel execution.
Quick Actions and What Will Happen in The Short Term
People who own Cosmos-native tokens, especially USDC, need to act now to retain access after the upgrade. If you have a modest amount of money, use decentralised exchanges like DragonSwap or Symphony to swap it. However, the risk of slippage depends on the level of liquidity.
Using Circle’s Cross-Chain Transfer Protocol, larger holders can use a batch migration tool to move assets from Noble to Polygon and back to Sei. Manual approaches, such as bridging through Stargate with middlemen like Base, have a higher potential for problems during operations.
People who take part in DeFi also have to close their positions. For example, they need to withdraw $194,000 in USDC from Yei and $13,000 from Takara Lend before they can do anything more. These steps are meant to maintain liquidity stability, but they could cause short-term volatility when consumers shift their portfolios.
The update provides long-term efficiency, but the migration process could temporarily lower SEI’s price due to selling activity or a drop in DeFi TVL.
Sei’s Technological Growth and Alignment With EVM
SIP-3 not only moves Sei into the Ethereum ecosystem but also makes it easier to use with popular wallets, tools, and protocols.
This might bring in more developers and liquidity, especially as EVM compatibility makes it easier for Ethereum users to get started. The Giga update expected in Q1 2026 is one of several innovations that will make things even better.
Tests have shown that performance can improve by 10 to 40 times, enabling high-frequency trading and real-world asset applications. Regulatory advancements, such as Sei’s recognition in states like Wyoming, make the company stronger at its core. Partnerships and institutional interest, such as SEI’s with Xiaomi for smartphone crypto wallets, could accelerate adoption, thereby indirectly enhancing SEI’s value.
Current Market Conditions and Trends in Performance
SEI has been unstable, with recent 24-hour drops recorded alongside network changes. The volume of trading and the size of the market indicate how sensitive they are to upgrade announcements and broader economic factors.
Despite price drops, the number of daily active addresses reached 1.4 million in late 2025, indicating the network is still in use. TVL is about $185 million, with excellent uptime and a high volume of transactions.
Token unlocks are a problem: 55.56 million SEI (approximately 1.05% of the circulating supply) will unlock on January 15, 2026, which might make selling more difficult. Analysts look for signs of a reversal in whale activity and in the RSI, which is now neutral at about 47.70.
Predictions for SEI Prices in 2026: Analyst Range and Consensus
Different methods, including technical indicators, historical cycles, and upgrade effects, yield different predictions for SEI in 2026. CoinCodex says the price would be between $0.0848 to $0.3381. If things stay bullish, the higher objective would be a 176% increase from current levels. Changelly expects the average price to be $0.7515 by the end of the year, as the ecosystem matures.
Coinpedia’s forecast for the relevant time periods suggests prices could rise above $1.00 in the next few years. For example, prices could continue to rise from the $0.42- $1.12 range in 2025-2026.
Based on cycle research, CoinLore offers a potential maximum of $1.28, representing more than 900% gains. On the other hand, Finst’s more conservative estimates show a neutral situation around €0.0589 (around $0.063), indicating a risk of losing money due to volatility.
According to Gate.com, the highest price in 2026 will be $0.1452, the lowest will be $0.1277, and the average will be $0.1344. DigitalCoinPrice could break $0.75 due to technological improvements. These differences show how SIP-3 affects things: if it works, it could support higher-end forecasts, but if there are problems with migration, it could limit benefits.
The Possibility of A Rally: SIP-3 as a Trigger
The SIP-3 improvement might start a rally by making Sei more appealing to EVM developers, increasing DeFi activity, and making it easier to scale. If Giga delivers on its promises and stays in line with Ethereum, it might bring in more money.
Analysts say that comparable changes to networks have led to price increases in the past by making them more useful and boosting investor trust.
But short-term problems, such as liquidity changes and unlocks, could slow momentum. If adoption measures rise after the upgrade, including TVL and transaction volumes, SEI might average $0.50 to $1.00. This influence would be more substantial if there were more bull-market conditions, clearer regulations, and greater collaboration.
Things Investors Should Think About and Risks
Some of the biggest dangers include problems caused by migration, including losses of USDC in liquidity, and competition from other Layer-1s. Changes in interest rates and other macroeconomic factors are also quite significant. Investors should keep an eye on official channels for changes to the timeframe and on-chain data for signs of buildup.
In conclusion, SIP-3 creates some short-term problems, but its long-term benefits make SEI a good candidate for development in 2026. Analysts have issued predictions ranging from very bullish to very cautious. The upgrade is expected to be a key factor in unlocking the upside.