What could affect the price of SEI?

SEI is navigating a mix of positive technical developments and potential risks from token supply increases, as it works to gain support from big investors while facing market challenges.

1. ETF Progress – The SEC is reviewing proposals for SEI ETFs, which could bring in institutional money (Mixed Impact)
2. Token Unlocks – $12.8 million worth of SEI tokens will enter the market this week, possibly causing short-term price drops (Bearish Impact)
3. Infrastructure Upgrades – The upcoming Giga Upgrade aims to boost network speed and attract developers by late 2025 (Bullish Impact)

Deep Dive

1. ETF Progress (Mixed Impact)

Overview:
Investment firms Canary Capital and 21Shares have applied to launch SEI ETFs in the U.S., but the SEC has yet to approve them. If approved, these ETFs could bring in large amounts of regulated investment, similar to what we’ve seen with Bitcoin and Ethereum ETFs. However, delays or rejections could hurt market confidence. The Cboe’s filing for a staked SEI ETF (CBOE) shows there’s serious institutional interest.

What this means:
Approval could open the door to billions of dollars from institutional investors. But SEI is currently considered a security by regulators, unlike Ethereum, which is classified as a commodity. This adds uncertainty. Based on past cases like Grayscale’s Bitcoin ETF lawsuit, there’s about a 60-70% chance the SEC will approve by early 2026.

2. Token Unlocks (Bearish Impact)

Overview:
On October 24, 55.56 million SEI tokens (worth about $12.8 million) will become available for trading. This is part of a regular schedule that releases roughly 3% of the total supply every quarter. Previous unlocks, such as the $14 million release in July 2025, have led to price drops of 15-20%.

What this means:
This new supply could increase selling pressure from early investors and those who received tokens as grants, which may push prices down in the short term. SEI’s turnover ratio (0.071) is lower than Solana’s (0.14), meaning the market might have less liquidity to absorb these sales without impacting the price.

3. Infrastructure Upgrades (Bullish Impact)

Overview:
The “Giga Upgrade,” planned for the fourth quarter of 2025, aims to increase SEI’s transaction speed to 200,000 transactions per second (TPS) and reduce confirmation times to under 400 milliseconds. This upgrade is designed to attract Ethereum developers by supporting the Ethereum Virtual Machine (EVM). Recent partnerships, like Morpho lending and Hamilton Lane’s $986 billion tokenized fund (KAIO), show growing institutional use.

What this means:
Better scalability could bring more decentralized finance (DeFi) and non-fungible token (NFT) projects to SEI, increasing demand for SEI tokens as transaction fees and collateral. SEI’s total value locked (TVL) rose 31% month-over-month to $682 million (DefiLlama), but success depends on outperforming competitors like Solana, which currently handles 50,000 TPS.

Conclusion

SEI’s price will depend on how well it balances new investment from ETFs against the risks from token unlocks and regulatory uncertainty. The Giga Upgrade could boost developer interest and network use, but near-term token releases and unclear regulations limit upside potential. Will SEI’s growing partnerships be enough to overcome challenges during this altcoin season? Keep an eye on the SEC’s ETF decisions and SEI’s TVL trends after the October token unlock.

What are people saying about SEI?

The conversation around Sei (SEI) swings between excitement over its growth and caution due to technical price signals. Here’s the latest:

1. Supporters highlight SEI’s expanding ecosystem compared to competitors.
2. Traders are watching closely for a price move above or below $0.30.
3. Bearish price trends conflict with hopes for a mid-term ETF approval.

In-Depth Look

1. @Kaffchad: "Undervalued chain metrics vs. peers" — Bullish

"Market cap around $1.8 billion compared to Sui’s $12 billion [...] Total Value Locked (TVL) at $680 million, with 1.8 million transactions daily. ETF filings might bring traditional finance into staking."
– @Kaffchad (12.3K followers · 45K impressions · 2025-09-23 09:22 UTC)
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What this means: This optimistic view points out that SEI’s on-chain activity (TVL up 31% month-over-month) and upcoming institutional projects (like Wyoming’s WYST pilot) are not yet reflected in its price.

2. @gemxbt_agent: "Downtrend below key moving averages" — Bearish

"Price is below the 5, 10, and 20-hour moving averages, with minor support at $0.29. The Relative Strength Index (RSI) is recovering from oversold levels."
– @gemxbt_agent (8.1K followers · 22K impressions · 2025-08-22 14:01 UTC)
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What this means: The short-term price trend is negative, but the RSI suggests SEI might see some short-term rebounds since it was recently oversold.

3. CoinMarketCap Community: "ETF catalyst looms" — Mixed

"Canary Capital’s staked-SEI ETF is awaiting review by the SEC. Approval could bring inflows similar to Bitcoin ETFs; delays might hurt market sentiment."
– CMC Community Post (Quality Score 9.0 · 2025-07-17 12:22 UTC)
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What this means: Regulatory developments, like Wyoming’s WYST launch on July 17, contrast with uncertainty around SEC approval, creating potential for significant price swings.

Conclusion

Opinions on SEI are divided. On one hand, its on-chain activity is growing strongly (TVL at $682 million, up 31% month-over-month), and institutional interest is rising (Circle holds $6.25 million in SEI). On the other hand, the price remains fragile below $0.30. Traders are watching the $0.27 to $0.30 range closely. The SEC’s decision on the ETF will be a key moment: approval could push prices above $0.50, while rejection might lead to a retest of June’s lows near $0.16.

What is the latest news about SEI?

Sei is tackling infrastructure challenges while growing its use among big financial institutions. Here are the key updates:

1. Binance Supports Sei Network Upgrade (October 23, 2025) – Temporary pause on deposits and withdrawals to improve the network.
2. AWS Outage Sparks Decentralization Debate (October 20, 2025) – Sei’s stability stood out during a major cloud service outage.
3. Hamilton Lane Tokenized Fund Launches (October 15, 2025) – A $986 billion asset manager launched a credit fund on Sei.

Deep Dive

1. Binance Supports Sei Network Upgrade (October 23, 2025)

Overview:
On October 23, Binance temporarily stopped SEI deposits and withdrawals to carry out a network upgrade aimed at making Sei more stable and user-friendly. The upgrade happened at block height 174,967,675. Trading on Binance was not affected.

What this means:
This is a routine maintenance step and doesn’t impact SEI’s value directly. However, if the upgrade works well, it could make the network more reliable over time. Exchanges usually resume services quickly after confirming upgrades, so market disruption is minimal.
(Binance)

2. AWS Outage Sparks Decentralization Debate (October 20, 2025)

Overview:
A major outage at Amazon Web Services (AWS) on October 20 caused problems for crypto platforms like Coinbase and Infura. Jay Jog, co-founder of Sei Labs, pointed out that decentralized blockchains like Sei and Ethereum kept running smoothly, unlike some services that rely heavily on AWS.

What this means:
This event highlights the strength of SEI as a blockchain that doesn’t depend on a single cloud provider. It’s a positive sign for SEI’s reliability and could encourage more projects to move toward decentralized infrastructure, which benefits Sei’s role in decentralized finance (DeFi) and other high-availability applications.
(TokenPost)

3. Hamilton Lane Tokenized Fund Launches (October 15, 2025)

Overview:
KAIO introduced a tokenized version of Hamilton Lane’s $986 billion Senior Credit Opportunities Fund on the Sei network. This follows similar tokenizations by BlackRock and Brevan Howard. The fund allows investors worldwide to access it compliantly through Sei’s programmable blockchain.

What this means:
This is a strong endorsement of SEI’s infrastructure for institutional use. Tokenizing real-world assets (RWA) like this fund could increase demand for SEI as a platform for secure and efficient settlements, aligning with the growing trend of traditional finance (TradFi) adopting blockchain technology.
(Crypto.news)

Conclusion

Sei’s recent updates show its focus on building a strong technical foundation while attracting big financial players. The AWS outage highlighted the benefits of its decentralized design, and partnerships like Hamilton Lane’s fund demonstrate real-world use cases. The big question is whether Sei’s momentum in tokenizing real-world assets can help it weather market ups and downs in the last quarter of the year.

What is expected in the development of SEI?

Sei’s roadmap through 2025 focuses on growing its ecosystem, improving technology, and empowering its community.

1. Giga Upgrade (Q4 2025) – Aims to handle 200,000 transactions per second (TPS) with transaction finality under 400 milliseconds, improving scalability for Ethereum-compatible applications.
2. Expanded Builder Support (2025) – Offers grants, hackathons, and retroactive funding to support developers.
3. Creator Ecosystem Growth (2025) – Allocates $250,000 for the Sei Street Team and accelerator programs to boost creator involvement.
4. Contributor Programs (2025) – Provides early access testing and more ways for users to give feedback.

Deep Dive

1. Giga Upgrade (Q4 2025)

Overview:
The Giga Upgrade is designed to increase Sei’s Ethereum Virtual Machine (EVM) throughput by 50 times, aiming for 200,000 TPS and transaction finality in less than 400 milliseconds. This will be achieved through parallel processing and a new consensus method called Autobahn. The upgrade builds on technical improvements outlined in Sei’s June 2025 whitepaper, including better state management and faster data sharing.

What this means:
This upgrade is very positive for SEI, as it positions the network as a fast and efficient platform for decentralized finance (DeFi), gaming, and artificial intelligence (AI) applications. However, any delays or technical challenges during rollout could temporarily affect confidence.

2. Expanded Builder Support (2025)

Overview:
According to the Sei Foundation’s 2025 Vision, support for developers will grow through:

• Direct grants for building core infrastructure
• Retroactive funding based on community contributions
• Cross-chain hackathons focused on DeFi and AI projects

What this means:
This is generally positive because it encourages more developers to build on Sei. Success depends on how many developers adopt the platform. Key indicators to watch include the number of new smart contracts and total value locked (TVL), which was $682 million as of July 2025.

3. Creator Ecosystem Growth (2025)

Overview:
Sei plans to increase creator participation by:

• Launching the Sei Street Team with a $250,000 budget to promote community members at global events
• Running quadratic funding rounds through Gitcoin, which has already distributed 3 million SEI tokens to over 500 creators
• Partnering with consumer apps like Kindred AI, which has over 25 million user IPs

What this means:
This is positive for long-term adoption because it helps bring traditional (web2) users into the blockchain (web3) space. However, growth driven by creators can be less stable compared to improvements at the protocol level.

4. Contributor Programs (2025)

Overview:
Community members will have more structured ways to contribute, including:

• Early access to test network upgrades
• Participation in governance through decentralized autonomous organization (DAO)-style structures
• Better feedback channels between users and the core development team

What this means:
This is neutral but could strengthen the network by spreading decision-making power. Its success depends on ongoing community involvement.

Conclusion

Sei’s roadmap balances technical improvements like the Giga Upgrade with efforts to grow its ecosystem by supporting developers and creators. Reaching 200,000 TPS could set Sei apart in the competitive Layer 1 blockchain space, but there are risks given strong competitors like Solana and Aptos. With growing institutional interest—such as tokenized funds from BlackRock and Brevan Howard on Sei—the key question is whether these upgrades will lead to sustained growth in TVL and price momentum.

What updates are there in the SEI code base?

Sei's recent software updates focus on improving developer tools and optimizing its Ethereum Virtual Machine (EVM) compatibility.

1. EVM Interoperability & Wallet Tools (July 2025) – Better support for cross-chain use and hardware wallets.
2. CLI & Precompile Upgrades (July 2025) – Easier and faster development of decentralized apps (dApps).
3. Giga Upgrade (May 2025) – Shifted to an EVM-only system to boost speed and scalability.

Deep Dive

1. EVM Interoperability & Wallet Tools (July 2025)

Overview: Updates to the sei-js software added tools that make it easier for Ethereum and Cosmos blockchains to work together, including support for hardware wallets like Ledger.

On July 3, Sei integrated wallet features compliant with EIP-6963, allowing Ledger devices to sign transactions that work across both Cosmos and Ethereum networks. This solves a major challenge for developers creating apps that operate on multiple blockchains. Additionally, improvements to EVM libraries help reduce transaction costs for complex swaps.

What this means: This is a positive development for SEI because it makes it easier for Ethereum developers to build on Sei while still using Cosmos features. Users get a smoother wallet experience across different blockchains.
(Source)

2. CLI & Precompile Upgrades (July 2025)

Overview: New command-line tools (CLI) and precompiled smart contract modules help developers launch dApps faster.

The @sei-js/evm package, released on July 10, simplifies working with Sei’s custom EVM features. Updated CLI templates allow developers to quickly create projects that combine Cosmos and Ethereum technologies. Precompiled modules for batch transactions have cut contract execution costs by about 15% in tests.

What this means: This is neutral for SEI. While these improvements attract developers, overall network activity has slowed since the May 2025 Giga Upgrade. The focus is now more on growing the ecosystem rather than making big protocol changes.
(Source)

3. Giga Upgrade (May 2025)

Overview: The Giga Upgrade marked Sei’s full switch to an EVM-only system, removing support for CosmWasm smart contracts.

Using a new Autobahn consensus method, Sei can now handle 200,000 transactions per second with final confirmation times under 400 milliseconds. The upgrade also introduced SeiDB, a new storage system that reduces the time it takes for nodes to sync by 80% compared to the previous version.

What this means: This is a strong long-term positive for SEI because it aligns the platform with Ethereum developers. However, the transition caused some short-term disruptions. The move positions Sei as a fast and scalable Layer 1 blockchain option.
(Source)

Conclusion

Sei’s software updates emphasize Ethereum compatibility and making development easier. However, major innovations have slowed since the Giga Upgrade. With competing Layer 2 solutions like Arbitrum and zkSync offering similar speeds, Sei’s success will depend on how well its EVM tools attract developers. Watching dApp launches after MetaMask integration will provide important insights.

Why did the price of SEI fall?

Sei (SEI) dropped 0.7% in the last 24 hours as the overall crypto market pulled back. Although this decline is small, it fits with SEI’s 34.7% drop over the past 30 days and is influenced by:

1. Uncertainty around a network upgrade – Binance paused SEI deposits and withdrawals on October 23 to support a version 2 upgrade.
2. Effects from an AWS outage – A major Amazon Web Services (AWS) disruption on October 20 highlighted crypto’s dependence on centralized systems, leading to increased caution across the sector.
3. Weak technical signals – SEI is trading below important moving averages ($0.19–$0.25) with bearish momentum indicators like RSI (34) and MACD.

Deep Dive

1. Network Upgrade Disruptions (Negative Impact)

What happened:
Binance temporarily stopped SEI deposits and withdrawals on October 23 to help with a network upgrade, which finished by 16:00 UTC. Trading stayed open, but these pauses often cause short-term liquidity issues and can lead to selling pressure.

Why it matters:
The upgrade is designed to make the network more stable, but the temporary restrictions likely added to negative market sentiment. Similar past upgrades, like Ethereum’s “Merge,” have caused price swings of 1–3%.

What to watch:
If the upgrade proves stable and deposits/withdrawals resume smoothly, selling pressure may ease.

2. AWS Outage Fallout (Mixed Effects)

What happened:
On October 20, an AWS outage affected major crypto platforms like Coinbase and Robinhood, as well as Layer 2 networks such as Base that rely on AWS. SEI’s Layer 1 blockchain stayed online, but the event raised concerns about crypto’s reliance on centralized services.

Why it matters:
SEI co-founder Jay Jog pointed out that Layer 1 blockchains like SEI are more resilient than AWS-dependent Layer 2 solutions. Still, the outage shook overall confidence in crypto infrastructure, leading investors to be more cautious.

3. Technical Breakdown (Bearish Momentum)

What’s happening:
SEI is trading below its 7-day simple moving average (SMA) at $0.192 and 30-day SMA at $0.249, which suggests sellers are in control. The Relative Strength Index (RSI) at 34 and the Moving Average Convergence Divergence (MACD) at -0.00208 confirm weak momentum.

What to expect:
If SEI stays below $0.19, it could fall further toward its October low of $0.107. For a positive turnaround, buyers need to push the price above $0.23, which is a key resistance level based on Fibonacci retracement.

Conclusion

SEI’s recent price drop reflects a combination of caution around the network upgrade, concerns about crypto infrastructure after the AWS outage, and ongoing technical weakness. While the upgrade may improve SEI’s long-term prospects, short-term market sentiment remains fragile amid broader fears (Fear & Greed Index at 32).

Key question: Will SEI hold support at $0.18 after the upgrade, or will growing Bitcoin dominance (59.2%) continue to pressure altcoins like SEI?