Sei Labs Aligns with Ethereum, Ends Cosmos Support in Strategic Pivot

Sei Labs, the team behind the Sei Network blockchain, has announced a transformative change: it will shift entirely to an Ethereum Virtual Machine (EVM)-only model, ending its support for Cosmos SDK and its once-strong ties to the Cosmos ecosystem.

Initially built as a high-speed Layer 1 chain within Cosmos, Sei Network gained recognition for optimizing trading and DeFi applications. However, with Ethereum and its EVM ecosystem dominating Web3 development, Sei Labs sees a clearer path forward. The team explained that aligning with EVM standards will streamline development, tap into Ethereum’s massive liquidity, and attract a wider pool of decentralized applications (dApps).

“The market has spoken — Ethereum’s EVM is the dominant platform,” Sei Labs stated. “By going EVM-only, we simplify onboarding for developers and open doors to more capital and users.”

This strategic pivot involves dropping Cosmos’ native features like Inter-Blockchain Communication (IBC), which enabled cross-chain transactions. While this marks a departure from Sei’s original vision, it positions Sei Network closer to Ethereum Layer 2s and EVM-compatible chains like Arbitrum, Avalanche, and Polygon.

The announcement has sparked mixed reactions. Some in the Cosmos community see it as a blow, highlighting Cosmos’ struggle to retain high-profile projects. Others praise Sei’s pragmatism, noting that EVM alignment offers access to established tools like MetaMask, Solidity, and Ethereum’s $90+ billion DeFi market.

Sei Labs assures existing validators and users that the transition will be gradual, minimizing disruptions. An EVM-only testnet is expected soon, with the mainnet upgrade scheduled later this year. Already, DeFi and NFT projects are eyeing Sei’s new EVM environment for deployment.

As Sei Labs makes this leap, it joins the growing list of chains consolidating around Ethereum’s technical standards — a sign of EVM’s unstoppable influence in the blockchain world.