SEI Soars 29% in 24 Hours: Key Factors Behind the Surge

SEI reached a high of $0.4737 on Wednesday, marking a remarkable 29% increase from its 24-hour low.
The trading volume for the token surged by 295% today.

SEI Price Performance

In the last 24 hours, SEI emerged as one of the standout assets in the cryptocurrency landscape. The token experienced an uptick of over 29%, bouncing from a low of $0.3661 to a high of $0.4737.

By Wednesday noon, the asset had slightly retraced to the $0.46 territory. However, this still reflected a considerable 24% gain for the day.

During this time, SEI’s transaction volume skyrocketed by 295%, with approximately $526.58 million worth of tokens transferred across DeFi wallets. This substantial increase indicates robust interest in the digital asset today.

Thanks to this latest surge, the market capitalization of the crypto, with a circulating supply of 3.52 billion, soared to $1.62 billion. A broader view of the charts reveals SEI’s impressive price growth, increasing by 71% over the week, 28% month-over-month, and a staggering 292% year-to-date.

Despite these remarkable gains, SEI still needs to climb approximately 147% to reach its all-time high of $1.14, achieved six months ago.

SEI’s Leverage

SEI’s unique advantage lies in its targeted Layer-1 (L1) blockchain, specifically designed for decentralized exchanges (DEXes). It provides institutions and developers with a secure, efficient platform for financial services, including lending.

The native token of the blockchain, known as SEI, is utilized for settling transactions. In addition to its functions as an investment and settlement medium, SEI also acts as the governance token of the chain.

This governance feature empowers SEI holders to influence the future direction of the protocol. Users can also stake their tokens to bolster liquidity and support network transactions while earning rewards in the process.

Reason Behind the Price Action

Currently, there isn’t a specific event linked to SEI that explains its sudden value increase. However, the token has benefitted from the positive market movement of SUI, often being referred to as a “SUI clone.” Additionally, SEI is positioning itself as a competitor to both SUI and Solana (SOL).

SEI and SUI Comparison (Source: Coinmarketcap)

On a larger scale, SEI appears to be benefiting from a renewed interest in Layer-1 blockchains. This surge coincided with Bitcoin’s (BTC) recent rise to $64K, rekindling optimism in the crypto market.

In addition to soaring prices, there is also a notable increase in open interest in the token’s futures market along with surging spot volume. Moreover, the negative funding rate for the digital asset is raising expectations for a potential short squeeze.

Lastly, some analysts, like Altstreet Bets, suggest that SEI might be on the path to replicate its bull run from 2021.