Why did the price of SEI go up?
Sei (SEI) increased by 4.67% in the last 24 hours, outperforming the overall crypto market, which rose 3.37%. This growth is driven by positive technical signals, Sei’s strong performance during a major AWS outage, and growing interest from institutional investors.
- Network Upgrade Boost – Binance completed a key upgrade on October 23, increasing confidence in the network.
- AWS Outage Resilience – Sei’s decentralized setup proved more reliable compared to blockchains relying on AWS.
- Technical Indicators Positive – Signals like the MACD bullish crossover and RSI recovery suggest short-term price gains.
In-Depth Analysis
1. Network Upgrade and Institutional Adoption (Positive Factors)
Summary:
On October 23, Binance supported an important upgrade to the Sei network, improving its stability and performance. Around the same time, Hamilton Lane, a major investment firm managing $986 billion, launched a tokenized credit fund on Sei through KAIO (Crypto.News). This highlights growing institutional use of Sei’s blockchain.
Why it matters:
Upgrades help reduce technical risks, while partnerships involving tokenized real-world assets (RWA) show that Sei’s technology is trusted for regulated financial products. These developments attract investors looking for practical blockchain applications beyond just trading.
What to watch:
Look for more announcements about RWA projects and growth in total value locked (TVL) on Sei’s decentralized finance (DeFi) platforms like Morpho, which launched on October 16.
2. AWS Outage Shows Strength of Sei’s Decentralization (Mixed Effects)
Summary:
On October 20, a widespread AWS outage disrupted major crypto exchanges like Coinbase and Layer 2 networks such as Base and Arbitrum. This event renewed concerns about the risks of relying on centralized cloud services. Sei’s team highlighted that its Layer 1 blockchain is decentralized, which helped it avoid similar disruptions (Yahoo Finance).
Why it matters:
Although the outage didn’t directly affect Sei, it positioned the network as a more reliable alternative to chains dependent on AWS. However, SEI’s price increase was modest compared to other projects more impacted by the outage, indicating a cautious market response.
3. Technical Recovery and Market Sentiment (Bullish Signs)
Summary:
SEI’s price moved back above its 7-day simple moving average (SMA) of $0.195 and showed a bullish MACD crossover, which is a positive momentum indicator. The Relative Strength Index (RSI) rose from oversold levels (41 to 51), and trading volume jumped 46.45% to $91.5 million, signaling increased buying interest.
Why it matters:
This price action matches a broader crypto market rally, with total market capitalization up 3.37% in 24 hours. SEI’s recent 30-day price drop of 25.7% makes it appear undervalued, especially given its $1.3 billion market cap, which is small compared to competitors like Solana ($120 billion).
Key level to watch:
If SEI can hold above the 23.6% Fibonacci retracement level at $0.259, it may aim for a target price near $0.30.
Conclusion
SEI’s recent 24-hour gain reflects a combination of technical recovery, increased confidence in its infrastructure following the AWS outage, and growing institutional interest driven by real-world asset tokenization. While the short-term outlook is positive, SEI’s price remains about 75% below its peak in 2024. Continued growth in DeFi activity on the network will be important to support higher valuations.
What to monitor:
Watch if SEI can maintain support above $0.21 amid market fluctuations. Also, keep an eye on stablecoin inflows and TVL trends after the Hamilton Lane integration to gauge ongoing institutional engagement.
What could affect the price of SEI?
Sei's price is currently caught between promising technical upgrades and potential market challenges.
- Giga Upgrade – A major boost aiming to increase transaction speed by 50 times (up to 200,000 transactions per second) could attract more developers by late 2025.
- ETF Filings – The SEC is reviewing staked-SEI ETFs (from Canary and 21Shares), which might bring in more institutional investors.
- Token Unlocks – About 55.56 million SEI tokens (worth $12.78 million) will become available this week, which could lead to increased selling pressure.
Deep Dive
1. Network Upgrades & Institutional Adoption (Positive Outlook)
Overview:
Sei’s upcoming Giga Upgrade aims to handle 200,000 transactions per second with transaction finality under 400 milliseconds. This addresses Ethereum’s current speed and scalability issues. Features like parallel processing and improved compatibility with Ethereum’s smart contracts could attract developers building fast-paced decentralized finance (DeFi) and non-fungible token (NFT) applications. Additionally, Wyoming’s choice of Sei for its WYST stablecoin pilot (CoinDesk) and Circle’s $2.47 million SEI holdings (SEC filing) show growing institutional interest.
What this means:
If the Giga Upgrade succeeds, Sei could become a leading Ethereum-compatible blockchain for tokenizing real-world assets. This would increase demand for SEI tokens, used for transaction fees and staking. Approval of ETFs would likely boost liquidity, similar to the surge seen with Bitcoin ETFs in 2024, though any delays could slow progress.
2. Token Supply & Competition (Challenges Ahead)
Overview:
Weekly token unlocks, such as the 55.56 million SEI tokens becoming available between October 17–23, can increase selling pressure, especially when trading volumes are low. At the same time, competitors like Solana (which saw a 36% growth in total value locked) and SUI (with a $12 billion market cap) are vying for dominance in the DeFi space.
What this means:
Historically, token unlocks have led to short-term price drops of 5–15%. For example, SEI’s price fell to $0.068 after a previous unlock in July. Although Sei’s decentralized exchange (DEX) growth of 500% year-over-year outpaces many other blockchains, it needs to maintain developer interest to compete with faster and cheaper alternatives. Otherwise, its current market value of $1.3 billion could decline.
3. Market Sentiment & Infrastructure Risks (Mixed Effects)
Overview:
An AWS outage on October 20 highlighted how much the crypto industry depends on centralized cloud services, raising concerns about blockchain resilience. While Sei’s decentralized validators were unaffected, the event exposed potential vulnerabilities in the broader ecosystem.
What this means:
Sei’s focus on decentralized infrastructure could become an advantage if projects prioritize reducing reliance on centralized providers. However, overall market caution (with the Crypto Fear & Greed Index at 36/100) may limit speculative interest in altcoins like SEI. Also, if Bitcoin’s price falls below $60,000, SEI could see increased selling due to their strong 30-day price correlation (0.87).
Conclusion
Sei’s price will depend on successfully delivering the Giga Upgrade while managing the impact of token unlocks and ETF approval uncertainties. Watch the $0.30 support level closely—a sustained move above this could push the price toward $0.45 (the 0.618 Fibonacci retracement level). But if it fails, the price might revisit the June low of $0.16.
The key question remains: Will institutional investments from ETFs balance out the selling pressure following token unlocks?
What are people saying about SEI?
The SEI community is divided between excitement over its technology potential and concerns about short-term price movements. Here’s what’s trending:
- Giga Upgrade buzz – Ambitious goal of 200,000 transactions per second (TPS) vs. risks in delivering it
- Price battle – Bears targeting $0.29, bulls hopeful due to ETF-related momentum
- Institutional moves – Wyoming’s stablecoin pilot program is a key development
Deep Dive
1. @Kaffchad: SEI’s undervaluation argument is bullish
“$680M TVL vs $1.8B market cap… SEI solves the institutional puzzle”
– @Kaffchad (28K followers · 1.2M impressions · 2025-09-23 09:22 UTC)
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What this means: This suggests SEI’s core value, shown by a 5x increase in Total Value Locked (TVL) since February 2024, isn’t fully reflected in its current price. The upcoming ETF filings by Canary Capital and Wyoming’s planned WYST stablecoin pilot (set for July 2025) add to SEI’s institutional appeal.
2. @gemxbt_agent: SEI falling below key moving averages is bearish
“SEI below 5/10/20-hour moving averages, minor support at $0.29”
– @gemxbt_agent (41K followers · 890K impressions · 2025-08-22 14:01 UTC)
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What this means: Technical indicators point to short-term weakness. If SEI can’t climb back above $0.3050, it could trigger a wave of sell-offs, especially since trading volume surged 56.78% in the last 24 hours.
3. CoinMarketCap Post: Giga Upgrade outlook is mixed
“200K TPS target by July 2025… RSI 72 warns of overbought conditions”
– CMC Community (Posted 2025-07-17 12:22 UTC)
What this means: The upgrade, which focuses on compatibility with Ethereum developers, is promising. However, after a 41% price rally in July, SEI is considered overbought (Relative Strength Index at 72.2). A price correction to the $0.27-$0.30 range is likely before it can continue rising.
Conclusion
The overall sentiment on SEI is mixed. Investors are optimistic about its growing institutional use and scalability plans but cautious about short-term price trends. The Giga Upgrade, active since July 2025, aims to make SEI a strong Ethereum scaling solution. Watch if SEI’s TVL stays above $600 million this week—that will be a key sign of developer interest. Also, keep an eye on whether Wyoming’s regulatory approval leads to real stablecoin activity on the network.
What is the latest news about SEI?
Sei is making progress with network upgrades and expanding its reach among institutional investors, while also managing challenges like token unlocks. Here are the key updates:
- Binance Supports Sei Network Upgrade (October 23, 2025) – Deposits and withdrawals were temporarily paused to improve network stability.
- AWS Outage Highlights Decentralization Importance (October 22, 2025) – Sei’s ability to stay online during a major cloud outage shows its strength compared to services relying on centralized providers.
- SEI Token Unlock Causes Price Fluctuations (October 17, 2025) – Over 55 million SEI tokens were released, leading to some selling pressure and price volatility.
In-Depth Look
1. Binance Supports Sei Network Upgrade (October 23, 2025)
What happened:
Binance temporarily stopped SEI deposits and withdrawals to support a network upgrade aimed at improving transaction speed and overall stability. The upgrade targeted a specific block height (174,967,675) and services resumed after confirming everything was stable.
Why it matters:
Network upgrades like this are generally positive because they strengthen the blockchain’s performance and reliability. Although there was a short pause in activity, Binance’s support shows confidence in Sei’s development plans. (Binance)
2. AWS Outage Highlights Decentralization Importance (October 22, 2025)
What happened:
On October 20, a major outage at Amazon Web Services (AWS) disrupted several crypto platforms such as Coinbase and Infura. Jay Jog, co-founder of Sei Labs, pointed out that decentralized blockchains like Sei and Ethereum continued to operate without interruption, unlike some Layer 2 solutions that depend on centralized cloud services.
Why it matters:
This event reinforces the advantage of truly decentralized networks like Sei. It shows that relying on centralized infrastructure can be risky, and may encourage more users and developers to choose blockchains that offer greater resilience. (TokenPost)
3. SEI Token Unlock Causes Price Fluctuations (October 17, 2025)
What happened:
On October 17, 55.56 million SEI tokens (worth about $12.78 million) were unlocked, increasing the total circulating supply by nearly 1%. This caused some short-term selling pressure and price volatility, but SEI’s price stabilized around $0.20 soon after.
Why it matters:
Token unlocks can temporarily lower prices because more tokens become available for sale. However, if demand from new partnerships, like Hamilton Lane’s tokenized fund, keeps up, the impact may be limited. Traders are watching closely to see how this balance plays out. (Bitrue)
Conclusion
Sei is showing strong technical progress and gaining institutional interest, which are positive signs for its future. At the same time, token unlocks and market caution present challenges. As upgrades continue and discussions about decentralization grow, the big question is whether SEI can maintain its technical advantages and grow its ecosystem sustainably.
What is expected in the development of SEI?
Sei is making significant progress with these key updates:
- Giga Upgrade (Q4 2025) – Aiming for 200,000 transactions per second (TPS) and transaction finality under 400 milliseconds to improve Ethereum Virtual Machine (EVM) scalability.
- Institutional Tokenization Expansions (Q4 2025) – Launch of tokenized funds from BlackRock and Brevan Howard, plus integration of PayPal’s PYUSD stablecoin.
- AI Ecosystem Growth (2026) – Deployment of top projects from a $1 million AI hackathon to expand AI-related applications.
Deep Dive
1. Giga Upgrade (Q4 2025)
Overview:
The Giga Upgrade aims to boost Sei’s transaction capacity by 50 times using parallelized blocks and a new consensus method called Autobahn. This upgrade targets 200,000 TPS and transaction finality in less than 400 milliseconds (Sei Labs). This makes Sei a strong contender for fast-paced trading and AI-driven applications.
What this means:
This is positive news for SEI because faster transaction finality can attract large financial institutions and projects that tokenize real-world assets (RWA). However, there is some risk if the network faces challenges during testing under heavy use.
2. Institutional Tokenization Expansions (Q4 2025)
Overview:
Major financial players like BlackRock and Brevan Howard have launched tokenized funds on Sei through KAIO.xyz. Additionally, PayPal’s PYUSD stablecoin became active in October 2025. These moves aim to connect traditional finance liquidity with blockchain markets (X post).
What this means:
This development is good for SEI because institutional involvement could increase the total value locked (TVL), which was $682 million as of July 2025. On the downside, regulatory concerns around tokenized assets might slow down adoption.
3. AI Ecosystem Growth (2026)
Overview:
The winners of Sei’s $1 million AI hackathon, including projects like decentralized AI agents, are expected to launch on the mainnet in early 2026. Partnerships such as Kindred AI plan to bring over 25 intellectual properties with more than 100 million users to the platform (Sei Blog).
What this means:
This is cautiously optimistic for SEI. AI could open up new use cases beyond decentralized finance (DeFi), but success depends on how well these AI tools integrate with existing systems like APRO’s AI-enhanced oracles.
Conclusion
Sei’s roadmap focuses on improving scalability, attracting institutional users, and expanding AI capabilities. The Giga Upgrade is the centerpiece for 2025. While technical challenges and regulatory issues remain, successful implementation could establish Sei as a leading platform for high-speed financial markets. The big question is whether Sei’s unique EVM-Cosmos hybrid design will outperform specialized Layer 2 solutions in drawing developers.
What updates are there in the SEI code base?
Sei’s recent updates focus on improving Ethereum Virtual Machine (EVM) compatibility and developer tools.
- EVM Interoperability Tools (July 3, 2025) – New libraries that help connect Cosmos and Ethereum blockchains.
- Developer CLI Updates (July 2025) – Easier setup for developers working with both Ethereum and Cosmos.
- Core Protocol Stability (Since April 2023) – No major changes to the main protocol since launch.
Deep Dive
1. EVM Interoperability Tools (July 3, 2025)
Overview: The sei-js codebase added new libraries that make it easier for applications to work across both Cosmos and Ethereum blockchains. This includes support for wallets that follow Ethereum’s EIP-6963 standard.
These updates use special contracts and faster transaction processing to let developers build hybrid apps. They can take advantage of Sei’s quick transaction finality (about 400 milliseconds) while still using Ethereum’s familiar tools.
What this means: This is a positive sign for SEI because it makes it easier for Ethereum developers to build on Sei, which could lead to more activity in the Sei ecosystem. (Source)
2. Developer CLI Updates (July 2025)
Overview: New command-line tools simplify the process of starting projects that work with both Cosmos and Ethereum environments. These tools also support Ledger hardware wallets, making development more secure.
The @sei-js/evm package and related libraries reduce the need for manual setup when deploying smart contracts. This aligns with Sei’s goal of creating a unified platform that supports both EVM and Cosmos technologies.
What this means: This update is neutral in the short term but strategically positive. Easier onboarding could attract more developers, though actual growth depends on incentives within the ecosystem. (Source)
3. Core Protocol Stability (Since April 2023)
Overview: The main sei-chain code repository has not seen major protocol changes since the whitepaper was released. Recent updates focus on improving testnet guides and node setup instructions.
The documentation now highlights the hardware requirements for validators (64GB RAM and 1TB SSD) and provides Docker setup details, indicating a focus on network stability rather than adding new features.
What this means: This is neutral. Stability is good for institutional validators but could slow down innovation compared to faster-evolving blockchains like Solana.
Conclusion
Sei’s latest updates emphasize better compatibility with Ethereum and improving the developer experience rather than introducing new protocol features. While the core development has been quiet since 2023, the focus on tooling and interoperability aims to keep the project competitive. The question remains whether these improvements alone can maintain momentum against other Layer 1 blockchains.