After reviewing a research institution's report on Sei, it mentioned a phenomenon—Sei's TVL is declining.

Honestly, I had previously noted in data that "TVL ≠ everything," but I didn't elaborate back then. Now I want to discuss this issue.

The key point is: if you're still evaluating a new public chain like Sei using the traditional DeFi framework, you're probably missing the mark. TVL is just one dimension; using it as the sole metric to judge the ecosystem's vitality is like only looking at trading volume to assess an exchange's activity—it's incomplete.

What is the current market situation? Almost all public chains are experiencing a decline in TVL. But this doesn't mean the ecosystem is dead; it simply indicates a fact: the sheer locked-in value is no longer the only standard to measure a chain's health.

What truly matters are soft indicators like user stickiness, on-chain activity, and application diversity. Sei has its own approach in these areas.