Why did the price of SEI fall?

Sei (SEI) dropped 4.47% in the last 24 hours, underperforming the overall crypto market, which fell by 1.04%. This decline is due to technical challenges, weakening interest in altcoins, and changes in staking rewards.

1. Technical Resistance: SEI couldn’t stay above the $0.308 price level.
2. Altcoin Sentiment: Investors are moving away from mid-sized altcoins like SEI amid mixed market feelings.
3. Lower Staking Rewards: Bitvavo reduced SEI’s Flex Staking annual percentage yield (APY) to 0.8%, making it less attractive to hold.

Deep Dive

1. Technical Resistance Break Failure (Bearish Impact)

Overview:
SEI tried but failed to break through the $0.308 resistance level, a key price point since early September 2025. This triggered automatic sell orders, and now the price is testing support around $0.258.

What this means:

• The 7-day simple moving average (SMA) at $0.328 is above the current price of $0.315, indicating short-term downward pressure.
• The Relative Strength Index (RSI14) is at 57.3, meaning SEI isn’t oversold yet, so there’s room for the price to drop further if market sentiment worsens.

Key watch: If SEI falls below $0.258, it could lead to more selling, pushing the price toward $0.24, which was the low in June 2025.

2. Cooling Altcoin Momentum (Mixed Impact)

Overview:
The Altcoin Season Index, which measures how well altcoins are performing compared to Bitcoin, dropped 2.78% to 70 in 24 hours. This suggests investors are less willing to take risks on mid-sized altcoins like SEI.

What this means:

• SEI’s trading volume increased by 13.8% to $183 million, but more sellers are taking profits after SEI’s impressive 97% gain over the past 90 days.
• Bitcoin’s market dominance rose to 57.39%, up 0.65% in 24 hours, drawing investment away from altcoins.

3. Staking Incentive Reduction (Bearish Catalyst)

Overview:
On September 1, Bitvavo lowered SEI’s Flex Staking APY from 1.2% to 0.8%, reducing the passive income potential for holders.

What this means:

• With lower returns, some investors might move their funds to assets offering higher yields, like LPT, which has a 10.9% APY on Bitvavo.
• Since about 25% of SEI’s supply is staked, a drop in staking participation could increase selling pressure.

Conclusion

SEI’s recent price drop is driven by technical resistance, weakening enthusiasm for altcoins, and reduced staking rewards. While the long-term outlook remains positive due to its growing use in decentralized finance (DeFi) and gaming—highlighted by a peak total value locked (TVL) of $570 million—short-term traders are cautious. Key watch: Whether SEI can hold the $0.258 support level as Bitcoin aims to stay around $111,000. If SEI breaks below this support, a deeper price correction may follow.

What could affect the price of SEI?

Sei’s price outlook balances its fast technology upgrades with challenges from competition and regulations.

1. Giga Upgrade (Positive Impact) – Aiming to increase transaction speed by 50 times to 200,000 transactions per second (TPS), making it more attractive for decentralized finance (DeFi).
2. ETF Filings (Mixed Impact) – Approval of SEI exchange-traded funds (ETFs) in the U.S. and Europe could bring more investment, but delays or rejections may hurt market sentiment.
3. Wyoming Stablecoin Pilot (Positive Impact) – State-backed stablecoin adoption could encourage more institutional investors to use Sei.

Deep Dive

1. Giga Upgrade & Technical Edge (Positive Impact)

Overview:
Sei’s upcoming Giga upgrade plans to handle up to 200,000 transactions per second with confirmation times under 400 milliseconds by using parallel processing technology (Sei Labs). It also includes updates to developer tools to attract more programmers.

What this means:
Faster transaction speeds could make Sei a top choice for high-frequency trading and real-world asset tokenization. This would increase demand for SEI tokens, which are used to pay transaction fees and as staking collateral. Similar upgrades in other projects, like Solana’s Firedancer, have led to price increases of 40-60%.

2. ETF Momentum vs. Regulatory Risk (Mixed Impact)

Overview:
Canary Capital filed for a SEI ETF in the U.S. in April 2025, and Valour offers a SEI exchange-traded product (ETP) in Europe. However, the U.S. Securities and Exchange Commission (SEC) remains cautious—only 19% of altcoin ETFs were approved in 2024 (CoinDesk).

What this means:
If approved, SEI ETFs could attract investment similar to Bitcoin ETFs, which saw an average of $145 million daily inflows after approval. But if rejected, SEI’s price could drop 15-20%. The token’s recent volatility (75.44% over the past week from its all-time high) increases this risk.

3. Wyoming WYST & Institutional Adoption (Positive Impact)

Overview:
Wyoming has chosen Sei for its state-backed WYST stablecoin, expected to launch by July 2025. Circle, a major crypto company, holds 6.25 million SEI tokens, showing confidence in the project (NullTX).

What this means:
Government-backed projects like this can boost demand for SEI tokens and stabilize their value. Similar partnerships, such as Wyoming’s integration with Avalanche (AVAX) in 2023, led to price gains of 30-50% within three months.

Conclusion

Sei’s price will depend on successfully rolling out its technical upgrades while managing regulatory uncertainties around ETFs. The Giga upgrade and Wyoming partnership are strong positive factors, but competition from projects like Solana and Sui, along with broader market trends (Bitcoin dominance at 57.29%), present challenges. Keep an eye on SEI’s total value locked (TVL), currently $624 million, and upcoming SEC ETF decisions to see if institutional investments can balance out retail selling pressure near the $0.36 resistance level.

What are people saying about SEI?

The SEI community is divided between excitement over a potential breakout and concerns about price stability. Here’s what’s trending:

1. Optimism around the Giga Upgrade – hopes for 200,000 transactions per second (TPS) face warnings from technical indicators showing the coin might be overbought
2. ETF rumors – the U.S. Securities and Exchange Commission (SEC) acknowledging SEI ETF filings is fueling speculation about institutional investment
3. Technical battle – bearish signs near $0.30 versus bullish patterns aiming for $0.45

Deep Dive

1. @Tanaka_L2: Institutions + Upgrades = Confidence Bullish

"Circle holds 6.25 million SEI, Wyoming’s stablecoin pilot chose us, and the Giga Upgrade (200K TPS) is launching this month. At $0.30, this is a good price to accumulate for 2026."
– @Tanaka_L2 (89K followers · 412K impressions · 2025-09-10 06:08 UTC)
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What this means: This is positive for SEI because institutional interest (like ETF filings and state partnerships) combined with technical improvements could increase both real-world use and investor demand. The Giga Upgrade’s claim of 200,000 TPS (compared to Solana’s 65,000 TPS) positions SEI as a fast and competitive blockchain platform.

2. @gemxbt_agent: Bearish Signals at Key Support Bearish

"SEI is trading below all major moving averages, testing support at $0.29. The MACD indicator hints at a possible bullish turn, but the RSI’s weak recovery from oversold levels suggests a breakdown to $0.28 is likely unless it climbs back above $0.3050."
– @gemxbt_agent (142K followers · 2.1M impressions · 2025-08-22 14:01 UTC)
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What this means: This is a warning sign for SEI because the price is under pressure, with many sell orders clustered between $0.295 and $0.30. Only about 12% of SEI holders are currently making a profit, which could lead to more selling.

3. CoinMarketCap Community: ETF Catalyst Watch Mixed

"Canary Capital’s staked-SEI ETF filing has been under SEC review since April. Approval could bring inflows similar to Bitcoin ETFs (which have $145 billion in assets under management), but delays might cause a 20-30% price drop to $0.25 support."
– CMC Community Post (3.2K votes · 2025-07-17 12:22 UTC)
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What this means: The outlook is uncertain until the SEC makes a decision. SEI’s price correlation with Bitcoin has dropped from 0.82 to 0.54 over the past 90 days, suggesting its ETF story might not follow the broader crypto market closely.

Conclusion

The overall view on SEI is mixed. The Giga Upgrade offers strong potential, but technical risks and ETF uncertainties remain. Developer activity is growing (GitHub commits up 18% month-over-month), and total value locked (TVL) has increased to $682 million (up 31% month-over-month), supporting a bullish case. However, SEI’s Relative Strength Index (RSI) at 72.2 indicates it may be overbought. Keep an eye on the SEC’s comments about the ETF this week — approval could push the price toward the $0.45 target, while delays might see it test the $0.27 to $0.30 range again.

What is the latest news about SEI?

SEI is gaining momentum through both technical progress and growth in its ecosystem, while keeping an eye on important regulatory developments. Here are the key updates:

1. SEC Recognizes SEI ETF Proposal (September 9, 2025) – A step closer to institutional investment.
2. Price Hits Important Resistance Level (September 6, 2025) – SEI tests $0.308 after bouncing back from $0.27.
3. MetaMask Integration Launches (August 7, 2025) – Over 100 million users can now access Sei’s ecosystem.

In-Depth Look

1. SEC Recognizes SEI ETF Proposal (September 9, 2025)

Summary:
The U.S. Securities and Exchange Commission (SEC) officially acknowledged Canary Capital’s application for a SEI spot ETF. This is a major milestone toward possible approval. Earlier, in June 2025, Wyoming chose Sei for its state-backed stablecoin pilot, which helped build trust with regulators.

Why it matters:
If the ETF gets approved, it could open the door for big institutional investors, similar to what happened with Bitcoin ETFs. However, any delays or denials could slow down enthusiasm. This regulatory progress fits well with Sei’s focus on following compliance rules (DylanTillEth).

2. Price Hits Important Resistance Level (September 6, 2025)

Summary:
SEI’s price bounced off a support level at $0.27 and tested resistance at $0.308. Analysts see $0.258 as a key support point. If SEI breaks above $0.308, it might rally toward $0.37.

Why it matters:
This price movement shows mixed feelings among traders. Staying above $0.308 could attract more buyers looking for momentum, but falling below might lead to some short-term selling. SEI’s 7.27% weekly gain as of September 15 indicates positive momentum continues (XT Blog).

3. MetaMask Integration Launches (August 7, 2025)

Summary:
MetaMask, a popular crypto wallet with over 100 million users, now supports Sei natively. This gives users easy access to Sei’s decentralized finance (DeFi) and gaming platforms. This came after Sei’s “Giga” upgrade in July, which improved compatibility with Ethereum-based apps and increased transaction speed to 200,000 transactions per second.

Why it matters:
This integration makes it easier for developers and users to join Sei’s network. Since the launch, daily transactions on Sei jumped to 4.2 million, and the total value locked (TVL) in the network surpassed $682 million (CoinMarketCap).

Conclusion

SEI’s future depends on its technical strength, progress on the ETF, and growing ecosystem adoption. With MetaMask expanding access and positive regulatory signals, Sei is well-positioned for growth. However, the stability of Bitcoin and SEC decisions remain uncertain factors. Will ETF approval help SEI become a key player in institutional portfolios?

What is expected in the development of SEI?

Sei’s development is focused on growing its ecosystem and improving its technology:

1. Builder Support Expansion (2025) – More grants and better tools for developers
2. Sei Street Team Program (2025) – $250,000 to support community events worldwide
3. Contributor Initiatives (2025) – Early testing and feedback opportunities for users

Deep Dive

1. Builder Support Expansion (2025)

Overview:
The Sei Foundation plans to boost support for developers by increasing grant programs, offering retroactive funding (rewarding past contributions), and hosting hackathons. This comes after working closely with over 500 developers since 2024.

What this means:
This is positive for SEI because better incentives can speed up the creation of decentralized apps (dApps), which are essential for making the blockchain useful. However, there are risks like delays in rolling out these programs and competition for developer talent from other blockchains such as Solana.

2. Sei Street Team Program (2025)

Overview:
Sei is dedicating $250,000 to send enthusiastic community members to industry events around the world. This builds on previous successful funding rounds that distributed 3 million SEI tokens to over 500 creators.

What this means:
This is somewhat positive for SEI since increasing real-world presence can help attract new users. The success of this program will depend on choosing the right events and tracking community growth effectively.

3. Contributor Initiatives (2025)

Overview:
Sei plans to launch early-access testing programs, creator accelerators, and better feedback channels to involve the community more deeply in product development.

What this means:
If done well, this is good news for SEI because active communities usually lead to stronger network effects. On the other hand, if these programs are not managed properly, they could distract from core goals.

Conclusion

Sei’s roadmap focuses on building its ecosystem by empowering developers and activating its community. The Giga Upgrade, completed in July 2025, set high performance standards, and the upcoming initiatives aim to turn that into lasting adoption. A key question remains: how will Sei’s focus on supporting creators set it apart from other blockchains like those based on EVM (Ethereum Virtual Machine) in attracting institutional users?

What updates are there in the SEI code base?

Sei’s recent updates include steady improvements to its Ethereum Virtual Machine (EVM) compatibility and developer tools.

1. EVM Interoperability Tools (July 3, 2025) – New libraries that make it easier to connect the Cosmos and Ethereum networks.
2. Core Protocol Maintenance (July 1, 2025) – Low-level tweaks to Sei’s EVM system for better performance.
3. Developer Tooling Updates (July 2025) – New command-line tools and support for faster smart contract execution in mixed environments.

Deep Dive

1. EVM Interoperability Tools (July 3, 2025)

Overview: The sei-js codebase added new libraries that support Sei’s parallel EVM setup and wallets following the EIP-6963 standard.
These changes make it easier for developers to move assets and deploy smart contracts between Cosmos and Ethereum networks.

What this means: This is good news for SEI because it lowers the technical barriers for Ethereum developers to start building on Sei. This could speed up the growth of the Sei ecosystem. Users will enjoy quicker cross-chain transactions and better wallet support.
(Source)

2. Core Protocol Maintenance (July 1, 2025)

Overview: The main sei-chain project had a commit labeled “failure,” along with updates to the evmrpc and precompile features in June 2025.
Though details are limited, these updates likely focus on improving the EVM execution and node performance.

What this means: Neutral for SEI. These routine maintenance updates help keep the network stable but don’t introduce major new features. Validators and node operators should watch for any performance boosts or new compatibility needs.
(Source)

3. Developer Tooling Updates (July 2025)

Overview: The @sei-js packages released new command-line interface (CLI) tools for quickly building decentralized apps (dApps) and libraries that speed up smart contract execution.
These updates support Sei’s goal to attract Ethereum developers while staying compatible with Cosmos.

What this means: Positive for SEI. Easier and faster development tools can lead to more dApps on Sei, increasing its usefulness. Developers get the flexibility to work across Cosmos and Ethereum without rewriting their code.
(Source)

Conclusion

Sei’s latest updates focus on improving EVM-Cosmos interoperability and making life easier for developers. While there aren’t major protocol breakthroughs, these steady improvements help Sei stay competitive. As Layer 2 solutions gain ground, it remains to be seen if Sei’s parallel execution engine can keep its speed advantage while growing its developer ecosystem.