SEI's major upgrade in March is imminent: $1.4 million USDC.n faces migration pressure, and users need to act immediately

The SEI network is set to undergo a major upgrade in March, which is not only a technical iteration but also an architectural shift for the ecosystem. The official team recently issued an urgent alert to the community: users holding USDC.n must complete asset exchanges before the upgrade, or they may face risks such as inability to use or loss of value. Currently, the USDC.n on the SEI network amounts to approximately $1.4 million, a significant decline from previous multi-million-dollar levels, reflecting that users are accelerating their migration.

Why USDC.n Is Facing Obsolescence

An inevitable result of architectural change

The SIP-3 upgrade planned for March on SEI marks a watershed moment. The core of this upgrade is the deprecation of CosmWasm and the native Cosmos asset system, transforming SEI into a blockchain architecture that supports only EVM. This means existing Cosmos ecosystem toolchains will no longer be compatible.

USDC.n is an older version of the stablecoin issued via Noble Network and bridged to SEI. Before Circle launched USDC natively on SEI, USDC.n was the most widely used USD stablecoin within the SEI ecosystem. But with Circle introducing native USDC on SEI, the role of this transitional version has been fulfilled.

On-chain data reflects the migration process

According to the latest data, the USDC.n amount has decreased from several million dollars to about $1.4 million, indicating that more and more users are actively choosing to migrate. Users are actively exchanging USDC.n for the native USDC supported by SEI to mitigate the technical and liquidity risks post-upgrade.

SEI’s official stance is clear: after the upgrade, USDC.n may become inaccessible on the network or face devaluation due to compatibility issues. This is not a threat but a straightforward statement of technical reality.

Migration Options for Different Users

SEI’s specific operational suggestions reflect considerations for different user situations. Small USDC.n holders can perform direct exchanges via DragonSwap or Symphony, which is simple and quick. Large users are advised to use Brr’s conversion tools to transfer assets in bulk from Noble to Polygon, and finally swap back to SEI’s native USDC via Circle’s CCTP cross-chain protocol. This approach reduces costs and slippage for large exchanges.

The Deeper Significance of SEI’s Transition to EVM

Strategic alignment with the ecosystem

SEI’s shift from Cosmos architecture to a pure EVM architecture indicates a strategic adjustment. The EVM ecosystem offers more mature development tools, a larger developer base, and a richer application ecosystem. For SEI, this transition means direct access to Ethereum’s liquidity and applications.

According to recent reports, SEI remains active in the market. Analysts note that SEI has recently re-claimed the 200-day moving average, stabilizing near the key support level of $0.12 to $0.122. This price performance aligns positively with the expectations of the ecosystem upgrade.

Rebuilding the stablecoin ecosystem

The migration of USDC.n also signifies a reconstruction of the stablecoin ecosystem. Circle had already invested in SEI by the end of 2023 and promoted the deployment of USDC natively on SEI. This demonstrates Circle’s recognition of SEI’s future development direction and indicates that USDC will become a primary stablecoin within the SEI ecosystem.

Timeline and Risk Warnings

Urgency of migration

Although the upgrade is scheduled for March, there are about two months remaining before the upgrade. For users holding USDC.n, this window is neither too tight nor should it be ignored. The earlier the migration is completed, the better the chance to avoid potential liquidity issues or price fluctuations before the upgrade.

Personal opinion

From a risk management perspective, SEI’s official warning is responsible. Compared to dealing with USDC.n devaluation after the upgrade, providing users with ample migration time can effectively reduce ecosystem risks. For users, this is also an important signal: SEI is taking its upgrade seriously, not acting rashly.

Summary

This upgrade and USDC.n migration alert from SEI involve three core points. First, it marks an important step in SEI’s transition from Cosmos to the EVM ecosystem, reflecting strategic adjustment. Second, users holding USDC.n need to complete their migration before March, and many have already proactively done so. Third, SEI provides specific operational plans tailored to different user scales, reducing the difficulty of migration.

For users interested in the SEI ecosystem, this is not only a technical upgrade alert but also a window into the ecosystem’s maturity. Completing the USDC.n migration allows users to mitigate risks and better participate in the ecosystem development post-upgrade.