Why did the price of SEI fall?

Sei (SEI) dropped 19.9% in the last 24 hours, underperforming the overall crypto market, which fell 6.35%. The main reasons include:

1. Technical breakdown – Indicators like RSI and MACD show bearish signals, and SEI lost important support levels.
2. Altcoin sell-off across the market – Bitcoin’s dominance increased to 59.55%, meaning investors are moving money away from riskier assets like altcoins.
3. Upcoming $18 million token unlock – This adds selling pressure as new tokens become available.

Deep Dive

1. Technical Breakdown (Negative Impact)

• Oversold RSI: SEI’s 7-day Relative Strength Index (RSI) dropped to 16.15, which is very low and indicates the coin is oversold, but momentum remains weak.
• Bearish MACD: The MACD indicator shows increasing downward momentum, signaling more selling pressure.
• Price below moving averages: SEI is trading 21% below its 30-day Simple Moving Average (SMA) of $0.30, confirming a downward trend.

What this means: Traders likely sold off their SEI holdings after the price fell below the $0.25–$0.23 support zone, triggering automatic stop-loss orders and accelerating the decline.

2. Market-Wide Altcoin Sell-Off (Negative Impact)

• Bitcoin dominance rose to 59.55%, up 1.6% in 24 hours, showing investors are shifting funds into Bitcoin as a safer asset.
• The Altcoin Season Index dropped to 33 out of 100, down 46% over the past month, indicating less interest in altcoins overall.
• SEI’s 24-hour trading volume surged 110% to $449 million, mostly driven by selling.

What this means: SEI’s price drop reflects a broader trend where investors are reducing exposure to riskier altcoins amid market uncertainty.

3. Token Unlock Concerns (Negative Impact)

• An $18 million SEI token unlock is expected soon (exact date not confirmed), according to recent reports.
• Token unlocks increase the circulating supply, which can lead to selling pressure if holders decide to sell their newly unlocked tokens. Currently, SEI’s circulating supply is 61.3% of the total supply.

What to watch: Monitor blockchain activity for large transfers of SEI tokens from wallets to exchanges after the unlock, which could signal increased selling.

Conclusion

SEI’s recent price drop is due to a combination of technical weaknesses, a broad altcoin market downturn, and concerns about the upcoming token unlock. While the coin is oversold and could see a short-term bounce, a sustained recovery depends on Bitcoin stabilizing and the overall market becoming more risk-friendly.

Key level to watch: Can SEI hold the Fibonacci 78.6% retracement level at $0.16? If it falls below this, further losses may follow.

What could affect the price of SEI?

The future price of Sei (SEI) depends on how well it attracts big investors, improves its technology, and reacts to overall crypto market trends.

1. Institutional Real-World Asset (RWA) Inflows – Over $200 million in tokenized funds on Sei increase its usefulness.
2. Giga Upgrade (Q4) – Aiming for 200,000 transactions per second (TPS) could draw more developers.
3. ETF Sentiment – Pending decisions by the SEC may influence demand.

Deep Dive

1. Institutional Asset Tokenization (Positive Impact)

Overview: Sei is becoming a key platform for tokenizing real-world assets. It hosts big funds like BlackRock’s ICS Fund and Brevan Howard’s $200 million strategies through KAIO (Yahoo Finance). Daily transactions have reached 1.6 million, and the total value locked (TVL) exceeded $530 million as of October 8.

What this means: Tokenized real-world assets increase the need for SEI tokens to pay transaction fees and for staking. According to Boston Consulting Group, the RWA market could reach $16 trillion by 2030. Even capturing a small portion of this market could greatly increase SEI’s value and usefulness.

2. Giga Upgrade & EVM Scalability (Mixed Impact)

Overview: Sei plans a “Giga Upgrade” in Q4 2025 targeting 200,000 TPS by using parallel processing and achieving transaction finality in under 400 milliseconds. Recent improvements to support Ethereum Virtual Machine (EVM) compatibility, like Etherscan integration, aim to attract Ethereum developers.

What this means: If successful, Sei could compete with fast blockchains like Solana. However, delays or technical problems could hurt confidence. The current Relative Strength Index (RSI) at 16.15 shows SEI is heavily oversold, which might mean a price rebound if the upgrades go well.

3. Regulatory & Macro Risks (Negative Impact)

Overview: SEI will face an $18 million token unlock in October 2025, which could increase selling pressure. At the same time, the SEC is still reviewing Canary Capital’s SEI ETF application filed in April 2025.

What this means: If the ETF is rejected or delayed, it could hurt market sentiment. The global crypto fear/greed index is at 35 (“Fear”), and the altcoin season index is at 33 (“Bitcoin dominance”), indicating investors are currently favoring Bitcoin over altcoins like SEI.

Conclusion

SEI’s price will depend on how well it balances growing institutional interest with broader market challenges and execution risks. While momentum from real-world asset tokenization and upcoming tech upgrades offer a positive outlook, token unlocks and ETF uncertainties limit short-term gains. Will the technical promise of the Giga Upgrade outweigh the selling pressure expected in October?

What are people saying about SEI?

The Sei (SEI) community is buzzing with a mix of bold optimism and cautious reassessment. Here’s what’s trending right now:

1. “Undervalued chain with $680M TVL” – Strong fundamentals but price hasn’t caught up yet
2. “ETF filings + Wyoming pilot = institutional runway” – Positive signs from regulators
3. “Mid-$0.30s resistance needs to break” – Price is stuck in a technical battle

Deep Dive

1. @Kaffchad: On-chain growth vs price lag (bullish)

“The market is missing something – Sei has $680 million in total value locked (TVL) and 1.8 million daily transactions, yet SEI’s market cap is only one-sixth of SUI’s. ETF filings and Wyoming’s stablecoin pilot haven’t been priced in yet.”
– @Kaffchad (42K followers · 189K impressions · 2025-09-23 09:22 UTC)
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What this means: This is a positive sign for SEI. Growing TVL and increasing institutional interest could lead to supply shortages if staking and ETF investments pick up.

2. @DylanTillEth: $0.34 breakout watch (mixed)

“The SEC has acknowledged the SEI ETF. A price move above $0.34 could trigger a fear-of-missing-out (FOMO) rally. But the 200-day moving average at $0.31 needs to hold on any pullbacks.”
– @DylanTillEth (18K followers · 63K impressions · 2025-09-09 09:14 UTC)
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What this means: This is cautiously optimistic. Regulatory progress supports SEI’s legitimacy, but the price needs to confirm strength by holding key technical levels.

3. @gemxbt_agent: Bearish structure under $0.29 (bearish)

“SEI is trading below all major moving averages. The Relative Strength Index (RSI) is recovering from oversold levels. The MACD indicator suggests a possible bullish crossover, but until $0.29 becomes support, the risk leans downward.”
– @gemxbt_agent (29K followers · 217K impressions · 2025-08-22 14:01 UTC)
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What this means: Short-term outlook is negative. Technical signals point to continued selling pressure unless the $0.29 price level holds as support.

Conclusion

The overall sentiment on SEI is mixed. Some investors believe in its institutional and technological advantages, like the Wyoming partnership and the planned 200,000 transactions per second upgrade. Others are cautious due to upcoming token unlocks and relatively low liquidity (24-hour volume to market cap ratio is 33.9%).

Keep an eye on the $0.29 to $0.34 price range. A clear break above $0.34 could confirm the positive on-chain trends, while failure to hold support near $0.29 might extend the recent 32% drop over the past 90 days.

Also, watch for updates on the Giga Upgrade adoption (expected in Q4 2025) and the timeline for the ETF decision—these will provide important clues about SEI’s future direction.

What is the latest news about SEI?

Sei is gaining momentum with institutional investors while navigating a volatile altcoin market. Here are the key updates:

1. Institutional On-Chain Funds Launch (October 10, 2025) – KAIO has deployed over $200 million in tokenized funds from BlackRock and Brevan Howard on the Sei blockchain.
2. Coinbase Improves SEI Trading Precision (October 8, 2025) – SEI now trades with finer price increments (0.00001), allowing for smoother and more precise order execution.
3. Sei’s Ecosystem Shows Strong Growth (October 10, 2025) – Total Value Locked (TVL) on Sei exceeds $530 million, with 1.6 million daily transactions driven largely by institutional activity.

Deep Dive

1. Institutional On-Chain Funds Launch (October 10, 2025)

What happened:
KAIO, supported by BlackRock Crypto and Brevan Howard, launched tokenized versions of their major funds on the Sei blockchain. This follows a similar move by Securitize in September, which deployed a $112 million credit fund on Sei. The blockchain’s fast transaction finality and compatibility with Ethereum-based applications make it ideal for managing funds around the clock.

Why it matters:
This development is a strong vote of confidence for Sei as a platform designed for institutional finance. It could increase demand for SEI tokens through staking, transaction fees, and mechanisms that reduce token supply. KAIO’s system also includes built-in identity and compliance checks (KYC/AML), which helps traditional financial institutions adopt blockchain technology more easily (Yahoo Finance).

2. Coinbase Improves SEI Trading Precision (October 8, 2025)

What happened:
Coinbase updated SEI’s trading precision from 0.0001 to 0.00001. This change aligns SEI with other high-volume cryptocurrencies and allows for tighter bid-ask spreads, meaning buyers and sellers can trade at prices closer to each other.

Why it matters:
This upgrade could attract more algorithmic traders and reduce price swings, which is generally positive for SEI. However, SEI’s price has dropped 19% over the past week, reflecting broader weakness in altcoins and suggesting that market trends may have a stronger short-term impact than technical improvements (U.Today).

3. Sei’s Ecosystem Shows Strong Growth (October 10, 2025)

What happened:
Sei’s Total Value Locked (TVL) reached $530 million, a 31% increase month-over-month. The network supports over 600,000 active wallets and processes 1.6 million transactions daily. More than 60% of this activity comes from institutional-grade decentralized finance (DeFi) projects and real-world asset (RWA) tokenization, according to DeFi Llama.

Why it matters:
Growing on-chain activity supports increased transaction fees and staking demand, which benefits SEI holders. Still, SEI’s price remains 69% below its all-time high in 2024, showing that investors remain cautious, especially given Bitcoin’s dominant market share of 59.5% (Yahoo Finance).

Conclusion

Sei’s recent partnerships with major financial players and technical upgrades position it as a promising contender in the race to tokenize real-world assets. With the tokenized asset market expected to reach $16 trillion by 2030 (Boston Consulting Group), Sei’s focus on fast technology and regulatory compliance could help it compete with platforms like Polygon and Avalanche. The question remains whether Sei can leverage these advantages to capture a significant share of this growing market.

What is expected in the development of SEI?

Sei's roadmap is focused on improving its technology and growing its community:

1. Giga Upgrade (Q4 2025) – A 50× increase in transaction speed to make the platform faster for developers using Ethereum-compatible apps.
2. AI Ecosystem Expansion (October 2025) – Partnering with Kindred AI to bring popular AI and gaming applications to Sei’s blockchain.
3. Global Community Growth (2025) – A $250,000 program to support community members attending industry events and spreading awareness.

Deep Dive

1. Giga Upgrade (Q4 2025)

Overview
This upgrade aims to process up to 200,000 transactions per second (TPS) and confirm transactions in under 400 milliseconds by handling multiple blocks at the same time (Sei Labs). The goal is to make Sei the fastest Ethereum Virtual Machine (EVM) compatible blockchain, which is important for applications like high-frequency trading and tokenizing real-world assets.

What this means
This is good news for SEI’s usefulness: faster speeds could attract developers who want Ethereum compatibility but need better performance than current solutions offer. However, there could be technical challenges that slow down execution or cause delays.

2. AI Ecosystem Expansion (October 2025)

Overview
Sei is teaming up with Kindred AI to bring over 25 intellectual properties (IPs) with more than 100 million users into its blockchain ecosystem. This focuses on gaming and AI-driven applications.

What this means
This move could be positive but depends on how easy it is for users to interact with these new AI features. If successful, Sei could become a key platform for AI-powered decentralized apps (dApps).

3. Global Community Growth (2025)

Overview
The Sei Street Team program dedicates $250,000 to support community ambassadors who attend industry events and promote Sei’s technology (Sei Foundation).

What this means
This is promising for growing the network: more visibility can lead to more developers and users joining Sei. However, community programs often take time to show clear returns.

Conclusion

Sei’s roadmap combines major technical improvements (Giga Upgrade), expanding use cases with AI and gaming, and growing its community. This three-part strategy aims to attract both big institutions and everyday users. With faster EVM compatibility and AI partnerships on the horizon, the key question is whether Sei can keep its ecosystem active and thriving after these upgrades.

What updates are there in the SEI code base?

Sei’s latest updates focus on improving Ethereum Virtual Machine (EVM) scalability and enhancing tools for developers.

1. Parallelized EVM Launch (July 2025) – The Sei v2 Devnet now supports fast, Ethereum-compatible decentralized apps (dApps).
2. Core Protocol Improvements (June–July 2025) – Small but important tweaks to improve performance and stability.
3. New Developer Tools (July 2025) – Updated command-line tools and libraries to better connect Cosmos and EVM environments.

Deep Dive

1. Parallelized EVM Launch (July 2025)

What happened:
Sei v2’s public Devnet introduced a new version of the Ethereum Virtual Machine that runs tasks in parallel. This means developers can use existing Ethereum smart contracts without changes, while benefiting from Sei’s fast transaction finality (400 milliseconds) and up to 100 times higher throughput.

Why it matters:
This is a positive development for SEI because it combines Ethereum’s large developer community with Sei’s speed advantages. It could attract decentralized finance (DeFi) and gaming projects that need to process many transactions quickly. (Source)

2. Core Protocol Improvements (June–July 2025)

What happened:
In June 2025, Sei made updates to key modules like evmrpc and precompiles to improve how gas fees are calculated and how the system manages data. A July 1 update labeled “failure” was made, though details are unclear.

Why it matters:
These changes are mostly routine maintenance aimed at keeping the network stable and reliable. They don’t represent major breakthroughs but show ongoing care for the platform’s health. (Source)

3. New Developer Tools (July 2025)

What happened:
The sei-js code repository added new packages such as @sei-js/evm and @sei-js/precompiles. These tools make it easier for developers to build applications that work across both Cosmos and Ethereum environments. The command-line interface (CLI) now supports faster setup of decentralized apps.

Why it matters:
Better tools lower the barrier for developers to build on Sei, encouraging more projects and innovation. The focus on bridging Cosmos and EVM could help Sei become a hub for cross-chain applications. (Source)

Conclusion

Sei’s recent updates show a clear focus on Ethereum compatibility and improving the developer experience, while maintaining core network stability. The v2 upgrade opens opportunities for high-speed decentralized apps, but with no major protocol changes since 2023, questions remain about Sei’s ability to stay competitive against newer Layer 1 blockchains and scaling solutions like modular chains and rollups.