Why did the price of SEI fall?

Sei (SEI) dropped 2.53% over the last 24 hours to $0.181, underperforming the overall crypto market, which fell 1.27%. Here’s why:

1. Upcoming Token Unlock – On November 15, 1.11% of SEI’s total supply will become available, causing concerns about increased selling.
2. Technical Resistance – SEI couldn’t break above the $0.25 price level, leading traders to take profits.
3. Market Caution – The Crypto Fear & Greed Index is at 31 (“Fear”), reducing appetite for altcoins like SEI.

In-Depth Analysis

1. Token Unlock Concerns (Negative Impact)

What’s happening?
On November 15, about 69.4 million SEI tokens (1.11% of the total supply) will be released as part of scheduled vesting. Historically, when tokens unlock, early investors and team members often sell, increasing supply and putting downward pressure on price.

Why it matters:
This unlock comes right after SEI’s recent 13.45% price jump over the past week, which can lead to a “sell the news” reaction. With the broader crypto market already cautious (down 1.27% in 24 hours), traders are likely reducing their risk exposure ahead of the unlock.

What to watch:
Keep an eye on whether large amounts of SEI tokens move into exchanges after November 15, which could signal increased selling (Token Unlock Tracker).

2. Technical Resistance at Key Price Level (Negative Impact)

What’s happening?
SEI tried but failed to stay above the $0.21788 level, which is an important technical point known as the 23.6% Fibonacci retracement. It also fell below its 30-day average price of $0.193. The Relative Strength Index (RSI) is at 46.7, indicating weakening buying momentum.

Why it matters:
Traders who bought during the recent rally likely sold their positions when the price couldn’t break through the $0.25 resistance level. The MACD indicator shows that bullish momentum is fading. The next support level to watch is the 7-day average price at $0.173.

Key level to watch:
If SEI closes below $0.173, it could drop further toward $0.148, which was the low back in June 2025.

3. Altcoin Weakness Amid Market Caution (Mixed Impact)

What’s happening?
Bitcoin’s dominance in the market increased to 59.19%, as investors moved money out of altcoins like SEI. SEI’s trading volume rose 24.37% to $162 million, but much of this was selling pressure.

Why it matters:
While SEI’s ecosystem is growing (for example, Binance becoming a validator is a positive sign), short-term traders are favoring Bitcoin’s liquidity during uncertain times. The Altcoin Season Index is at 29 out of 100, showing that investors are hesitant to take risks on altcoins right now.

Conclusion

SEI’s recent price drop reflects profit-taking after a strong rally, concerns about the upcoming token unlock, and cautious sentiment across the crypto market. The $0.173 support level and how the market absorbs the new token supply after November 15 will be key to SEI’s short-term direction.

Watch closely: Can SEI stay above its 7-day average price of $0.173 to keep its bullish momentum?

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What could affect the price of SEI?

SEI balances strong technical improvements with market risks as key events approach.

1. Giga Upgrade (Positive) – Expected 10-40x speed improvements could strengthen SEI’s position in decentralized finance (DeFi).
2. Token Unlocks (Negative) – $17.5 million worth of SEI tokens will become available on November 15, which might lead to price drops.
3. ETF Outlook (Uncertain) – Approval of SEI-related ETFs by the SEC could bring more institutional investment, similar to Bitcoin’s experience.

In-Depth Analysis

1. Giga Upgrade & Institutional Use (Positive Impact)

What’s happening: Sei’s Giga Upgrade aims to make the network 10 to 40 times faster by using new technology like RocksDB and parallel processing. This is especially important for applications that need to process many transactions quickly, such as high-frequency trading. Big financial firms like BlackRock, Apollo, and Nomura’s Laser Digital are already using Sei for managing tokenized funds. Over the past year, Sei’s decentralized exchange (DEX) has handled more than $10 billion in trading volume.

Why it matters: If the upgrade works as planned (currently being tested), Sei could become the preferred blockchain for real-world assets (RWAs) and institutional DeFi projects. This would increase demand for SEI tokens, which are used to pay transaction fees and participate in network staking. However, any delays or technical problems could slow down this growth.

2. November 15 Token Unlock (Negative Impact)

What’s happening: On November 15, 69.4 million SEI tokens (worth about $17.5 million at the current price of $0.182) will be unlocked. This represents about 1.11% of the total token supply. When tokens unlock, holders often sell them, which can cause the price to drop. This is especially concerning since SEI’s price has already fallen 44% this year.

Why it matters: Although this unlock is smaller compared to recent token unlocks in other projects like Aptos and STRK, the additional supply could still put downward pressure on SEI’s price if there isn’t enough buying interest. Keep an eye on price support levels around $0.17 to $0.18.

3. Regulatory and Market Factors (Mixed Impact)

What’s happening: The U.S. Securities and Exchange Commission (SEC) is expected to make decisions soon on Franklin’s XRP ETF (November 14) and SEI ETF applications. These decisions may coincide with changes in Federal Reserve policies following the release of inflation data on November 13. Currently, market sentiment is cautious, as shown by the Fear & Greed Index at 31 out of 100.

Why it matters: If the SEC approves SEI-related ETFs, it would boost confidence in SEI’s use by institutional investors, potentially increasing demand. On the other hand, if the SEC rejects these ETFs and inflation data is unfavorable, it could prolong a risk-averse mood in the crypto market. SEI’s price tends to move closely with Bitcoin (with a 30-day correlation of 0.82), so broader market trends will heavily influence SEI’s performance.

Conclusion

SEI’s near-term outlook depends on successfully rolling out the Giga Upgrade, managing the impact of token unlocks, and navigating broader market and regulatory conditions. The price range between $0.15 and $0.20 will be critical to watch. Holding above the November 14 pivot point of $0.1873 could indicate growing investor interest. The key question remains: Can Sei’s growing use by enterprises offset selling pressure from token unlocks, especially if Bitcoin faces challenges?

What are people saying about SEI?

The Sei (SEI) community is divided between excitement over a major tech upgrade and concerns about weak price trends. Here’s what’s making headlines:

1. Tech improvements leading to comparisons with “Solana 2.0”
2. Wyoming’s stablecoin pilot program boosting hopes for institutional interest
3. Price battles around $0.30 creating mixed feelings among investors

Deep Dive

1. @Kaffchad: Is SEI Poised for Institutional Growth? 🧩 Bullish

"The market is undervaluing SEI – it’s at a $1.8 billion market cap compared to SUI’s $12 billion. With the upcoming Giga Upgrade (200,000 transactions per second) and ETF filings, a supply shock is likely."
– @Kaffchad (20K followers · 68K likes · 2025-09-23 09:22 UTC)
View original post
What this means: This is positive news for SEI. It suggests the token is undervalued given its technical improvements and potential institutional interest, which could reduce the number of tokens available on the market.

2. @gemxbt_agent: Technical Indicators Signal Trouble 🚨 Bearish

"SEI is trading below its 5, 10, and 20-hour moving averages, with minor support at $0.29. The MACD indicator shows a possible bounce, but the overall structure looks weak."
– @gemxbt_agent (NA followers · NA impressions · 2025-08-22 14:01 UTC)
View original post
What this means: This is a warning sign for SEI. The fact that the price is below key moving averages suggests the momentum is weakening, even though some indicators hint at a short-term rebound.

3. CoinDesk: Wyoming’s Blockchain Initiative Supports SEI 🏛️ Bullish

Wyoming has chosen SEI for its WYST stablecoin pilot program, expected to launch by July 17. Circle, a major player in the crypto space, holds 6.25 million SEI tokens.
– Reported 2025-07-17
View article
What this means: This is good news for SEI. Regulatory support like this can encourage institutional adoption, similar to how Bitcoin ETFs have influenced the market.

Conclusion

Opinions on SEI are mixed. On one hand, the upcoming Giga Upgrade and ETF filings suggest strong long-term potential. On the other hand, SEI’s struggle to stay above the $0.30 price level keeps investors cautious. Keep an eye on SEI’s price action between $0.175 and $0.195 this week. Holding this range could support the bullish outlook, while falling below it might extend the year-to-date decline of 47%.

What is the latest news about SEI?

Sei is balancing cutting-edge AI innovation with strong technical foundations as a token unlock approaches. Here’s what you need to know:

1. AI Agent Integration (Nov 11, 2025) – Sei is leading the way by using AI to automate blockchain transactions.
2. Binance Validator Joins (Nov 9, 2025) – Binance strengthens the network’s security, showing growing institutional confidence.
3. Token Unlock Coming (Nov 15, 2025) – About 1.11% of SEI tokens will enter the market, which could impact price stability.

In-Depth Look

1. AI Agent Integration (November 11, 2025)

What happened: At the Blockchain Futurist Conference, Sei’s Justin Barlow explained how the network now uses AI agents through something called the Model Context Protocol (MCP). These AI agents can carry out transactions on their own. Sei is already handling 12,000 transactions per second and is preparing for more activity driven by AI. Partnerships like KAIO’s tokenized funds aim to make assets ready for AI management.
Why it matters: This is a positive sign for SEI because it puts the network at the forefront of combining AI with decentralized finance (DeFi). However, real success depends on practical uses beyond just hype around meme coins. (CCN)

2. Binance Validator Joins (November 9, 2025)

What happened: Binance became a validator on the Sei network, which helps secure the blockchain ahead of a major upgrade called GIGA. This move reflects growing institutional interest, with Sei already managing $680 million in total value locked (TVL) and working with big names like BlackRock and Apollo.
Why it matters: This is generally good news because having Binance as a validator increases network security and decentralization. However, SEI’s price only rose modestly (+19%) after the announcement, indicating the market had mostly expected this. Keep an eye on how many validators join after the GIGA upgrade. (NullTX)

3. Token Unlock Coming (November 15, 2025)

What happened: On November 15, about 69.4 million SEI tokens (worth roughly $12.6 million) will be unlocked and become available for trading. This is part of a larger wave of crypto token unlocks totaling $476 million that week. In the past, SEI’s price has moved 5-8% around similar events.
Why it matters: There could be short-term downward pressure if many holders decide to sell their tokens. However, recent developments like SEI’s listing on Robinhood and strong decentralized exchange (DEX) trading volumes ($82 million) might help stabilize the price. Watch how much buying interest there is around the $0.14 to $0.15 price range. (CoinMarketCap)

Conclusion

Sei is navigating two important trends: integrating AI technology and gaining institutional support. The upcoming token unlock will test how well the market can absorb new tokens without hurting the price. While Sei’s technology is attractive to developers, it remains to be seen if everyday investors will keep up the momentum. Pay attention to trading activity after November 15 for signs of how the market reacts.

What is expected in the development of SEI?

Here’s what’s coming for Sei:

1. Giga Mainnet Launch (Q4 2025) – Aims to handle 200,000 transactions per second (TPS) with final confirmation times under 400 milliseconds, improving scalability for Ethereum-compatible apps.
2. Builder Ecosystem Grants (2025) – More funding and hackathons to support developers building on Sei.
3. AI Integrations (2025) – Collaborations like Kindred AI to bring smart AI-powered features to the blockchain.
4. Institutional Adoption (2025) – Big players like BlackRock and Apollo are launching tokenized funds on Sei, with ETFs pending regulatory approval.

Deep Dive

1. Giga Mainnet Launch (Q4 2025)

Overview: The Giga upgrade is designed to make Sei’s Ethereum Virtual Machine (EVM) run 50 times faster by processing transactions in parallel. The goal is to reach 200,000 TPS and confirm transactions in less than 400 milliseconds. This involves a new EVM client, a consensus method called Autobahn for asynchronous processing, and improved data storage. Internal tests have already shown speeds of 5 gigagas/sec (Sei Labs).
What this means: This upgrade could make Sei a top choice for decentralized finance (DeFi), gaming, and institutional applications that need fast, reliable blockchain performance. However, there’s always a risk of delays or technical issues when launching such a major upgrade.

2. Builder Ecosystem Grants (2025)

Overview: The Sei Foundation plans to increase support for developers through grants, retroactive funding, and hackathons. The focus areas include tools for DeFi, making Ethereum and Cosmos blockchains work better together, and integrating hardware wallets (Sei Foundation).
What this means: More funding and events could encourage developers to build a wider variety of apps on Sei. Still, Sei faces competition from other blockchains like Solana and Sui for developer attention.

3. AI Integrations (2025)

Overview: Sei is teaming up with AI projects such as Kindred AI to enable AI-powered agents that can handle payments and DeFi tasks on the blockchain. Sei’s fast network speed makes it suitable for real-time AI interactions, tapping into a potential $200 billion AI-agent market (CoinDesk).
What this means: While still early and speculative, successful AI integration could open new use cases and attract users interested in AI-driven decentralized apps.

4. Institutional Adoption (2025)

Overview: Sei is attracting institutional interest. BlackRock’s ICS fund and Laser Digital’s tokenized fund are already live on Sei. Additionally, Canary Capital has filed for a staked-SEI ETF, awaiting approval from the U.S. Securities and Exchange Commission (SEC). If approved, this could bring significant investment similar to Bitcoin ETFs (CoinMarketCap News).
What this means: Institutional involvement boosts Sei’s credibility and liquidity. However, regulatory approval is uncertain, and delays or denials could affect market sentiment.

Conclusion

Sei’s roadmap combines major technical upgrades with efforts to grow its developer community and attract institutional investors. Its focus on speed and regulatory compliance positions it well for scaling DeFi and tokenizing real-world assets. The big question is whether Sei’s unique EVM-Cosmos hybrid design will outpace other Layer 2 solutions in drawing developers and users.

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What updates are there in the SEI code base?

Sei’s codebase is actively maintained, focusing on improving Ethereum Virtual Machine (EVM) compatibility and developer tools.

1. EVM Interoperability Tools (July 3, 2025) – New libraries and command-line tools help developers work smoothly between Cosmos and Ethereum environments.
2. Low-Level EVM Optimizations (June 2025) – Updates to core modules improve efficiency and transaction speed.
3. Core Protocol Stability (July 1, 2025) – Minor fixes suggest routine maintenance and focus on network stability.

Deep Dive

1. EVM Interoperability Tools (July 3, 2025)

Overview: The sei-js project released new libraries that make it easier for developers to connect Cosmos-based apps with Ethereum tools. This includes support for wallets following the EIP-6963 standard, which helps hardware wallets work seamlessly.

These tools simplify building apps that can operate across both Cosmos and Ethereum blockchains, enabling features like hybrid transactions and easier smart contract deployment. The @sei-js/evm package helps developers deploy smart contracts, while command-line tools assist in setting up projects quickly.

What this means: This is a positive development for Sei (SEI) because it lowers the technical barriers for Ethereum developers to build on Sei. This could attract more decentralized applications (dApps) and provide users with faster cross-chain transactions and a smoother wallet experience.
(Source)

2. Low-Level EVM Optimizations (June 2025)

Overview: Updates to the evmrpc (which handles EVM remote procedure calls) and precompiles (special smart contracts optimized for speed and gas efficiency) modules have improved transaction processing speed and reduced costs.

These improvements help blocks finalize faster and make common operations like token transfers more efficient. While these are not major protocol upgrades, they support Sei’s goal of reaching over 200,000 transactions per second after its upcoming Giga upgrade.

What this means: In the short term, these changes have a neutral impact on SEI, but they are positive for the long term. Traders may experience slightly faster transaction settlements, and developers benefit from a more reliable EVM environment.
(Source)

3. Core Protocol Stability (July 1, 2025)

Overview: A commit labeled “failure” was made to the main sei-chain repository, but it appears to be part of routine debugging. Recent updates focus on improving validator setup, including Docker scripts for running 4-node clusters and hardware recommendations like 64GB RAM for nodes.

There have been no major protocol changes since the April 2023 whitepaper.

What this means: This is neutral for SEI. The focus on network stability and validator support shows the project is maturing, but without significant upgrades, there is a risk that Sei could fall behind competitors like Solana or Aptos.
(Source)

Conclusion

Sei’s development is shifting from new features to refining existing technology, especially around cross-chain compatibility and enterprise readiness. While improved developer tools may attract projects familiar with Ethereum, the lack of major protocol breakthroughs raises an important question: Can Sei’s parallelized EVM keep up with emerging technologies like zero-knowledge Layer 2 solutions?