Being the fastest-growing blockchain, Sei Network has gained popularity as a digital currency.

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20 Jan 2024

Key Drivers of Surge:

SEI token has a capped total supply of 10 billion tokens.
Announcement of EVM compatibility upgrade attracting Ethereum developers.
Memecoin frenzy, notably with SEIYAN, led to increased token demand.
Any type of trading app, including DeFi DEX, NFT marketplace, and gaming DEX, will function more smoothly on Sei than on any other Layer 1 platform, according to Sei.
Since its launch in August 2023, the SEI token has increased by up to 8,900%, and has already entered the top 50 largest cryptocurrencies by market valuation.

SEI is headlines in the Crypto market because of its skyrocketing price since its launch as various factors are contributing for its potential growth, we will discuss the factors in the following Article
Since its launch in August 2023, the SEI token has increased by up to 8,900%, putting it in a bull market. Within six months of its mainnet introduction, Sei, the native cryptocurrency of a Layer One (L1) blockchain, has already entered the top 50 largest cryptocurrencies by market valuation.
In August 2023, the mainnet of the proof-of-stake (PoS) blockchain Sei was introduced. In the same month, active users on Ethereum, Solana, Arbitrum (ARB), Polygon (MATIC), Binance Chain (BNB), and Osmosis (OSMO) received airdrops of its native coin, SEI.
Sei’s website describes the blockchain as “the world’s fastest blockchain” because it boasts a transactional finality of 380 milliseconds, compared to L1 rivals Ethereum’s (ETH) 6 minutes and Solana’s (SOL) 2.5 seconds.
Jayendra Jog, Dan Edlebeck, and Jeffrey Feng are the faces behind the Sei blockchain. Edlebeck was the creator of the popular Sentinel and Exidio, both of which were based on Cosmos.

The SEI Token is surging, but why?

According to Coinpedia data as of 13 January 2024, the SEI token has increased by more than 8,900% from its launch in August 2023. On August 15, 2023, the token debuted at $0.0645, and by January 3, 2024, it had reached its peak of $0.718
The $SEI’s total value locked (TVL) has increased in addition to its price increase. It has now increased by 3,500% to $5.6 million from the August data.

The following are the primary causes of the price increase of SEI:

1. SEI releases an update for EVM compatibility
On November 29, 2023, Sei declared that the next blockchain network’s v2 upgrade would enable Ethereum virtual machine (EVM) smart contracts. As of this writing, Rust-written Cosmos-native Cosmwasm smart contracts are the only ones supported by Sei.
EVM smart contracts, which are written in the Solidity programming language, will draw developers from more than just Ethereum, the largest smart contract platform in the world. Nevertheless, it will also attract end users that utilize well-known EVM-compatible wallets like MetaMask.
Sei states that its v2 upgrade would enable EVM smart contracts to function backwards, making it possible for developers to quickly and easily deploy their smart contracts from Ethereum and other compatible blockchains without requiring any modifications.
In late November 2023, the announcement contributed to a 22% increase in SEI, which reached an all-time high of $0.34. The first half of 2024 is when the Sei v2 update is expected to be implemented.
2. The Memecoin Madness
Memecoin rallies accounted for the majority of the gains in the cryptocurrency market in 2023. Trade activity for memecoin surged on multiple blockchains, such as Solana, Ethereum, and Bitcoin. In December 2023, even a newcomer like Sei witnessed its share of memecoin trade, which raised demand for its native token, SEI, during that time.
One of the main drivers of SEI’s token price increase was investor interest in a memecoin called SEIYAN, which is built on Sei. In the final 11 days of December 2023, SEIYAN — dubbed the “brand coin” of the Sei blockchain — saw an increase of more than 127,000%. The price of the native token increased in tandem with the rush of speculative investors to purchase SEI tokens, which were used to cover the gas fees required to obtain SEIYAN tokens on decentralized exchanges.

SEI Price Prediction

The SEI coin price has increased steadily over the last three weeks due to the effect of an ascending trendline. With this trendline providing strong support, the price of the currency has increased 290%, from $0.22 to its most recent high of $0.88.
However, the SEI coin price saw another decline from the previously mentioned peak, which brought it back to the $0.70 mark, due to the growing unpredictability in the cryptocurrency market. Currently, the sellers are attempting to find appropriate support at the intersection of the $0.627 mark and the 38.2% Fibonacci Retracement Level of the ascending trend line.
If the uptrend is sustained above the support, it may break through the previous swing high resistance of $0.88 and reach the psychological $1.00 mark.

Sei (SEI) Price Analysis as per Coinpedia

The price of Sei has been moving in an ascending channel pattern; however, it is currently facing rejection at $0.88. Sellers are trying for a retest of the rising support line because the price is now trading below EMA20 and the RSI is holding below the midline.

If bulls hold the price above moving averages, buyers might head toward the $0.88 level. In such a case, we might see a surge toward $1 in the coming week. — Coinpedia

SEI Tokenomics:

There is a cap of 10 billion tokens in the SEI total supply.
As of January 13, 2024, there were 2.3 billion SEI tokens in circulation.
The “Ecosystem reserve,” which makes up 51% of SEI’s total supply, will be utilized for airdrops, community projects, grants, incentives, and staking rewards.
The Sei Foundation treasury has a 9% allocation of the entire supply.
The development team has a 20% reservation on the entire supply.
Launchpool received 3% of the entire supply.
An additional 20% of the entire supply was given to investors in private sales.
As of January 13th, 2024, SEI had a market worth of $1.62 billion, making it the 49th biggest cryptocurrency.
As of January 13th, the expected SEI staking yield was 4.6% APR.

The Final Word
It’s worth keeping an eye on the Sei blockchain project. Sei will surely be able to stand out from other blockchains because to its laser-like concentration on being an L1 for cryptocurrency trading applications. As, Sei promises to be faster than well-known competitors like Ethereum and Solana.

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Written by Zameer Attar

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Unveiling the Mysteries of Crypto | Analyst Extraordinaire 📊💎Stay tuned for market updates, educational content, and thought-provoking discussions🚀💡