Why did the price of SEI fall?

Sei (SEI) dropped 1.41% to $0.108 in the last 24 hours, underperforming the overall crypto market, which fell 0.61%. The main reasons include temporary exchange suspensions, weak price trends, and investors avoiding riskier altcoins.

1. Exchange Pauses – Bithumb and Upbit stopped SEI deposits and withdrawals for system upgrades, causing some trading disruptions.
2. Price Weakness – SEI’s price remains below important moving averages, indicating downward pressure.
3. Market Mood – Investors are favoring Bitcoin over altcoins, with Bitcoin dominance at 59.15%, signaling a cautious market.

In-Depth Analysis

1. Exchange Pauses (Mixed Effects)

What happened:
On December 22-23, two major Korean exchanges, Bithumb and Upbit, temporarily paused SEI deposits and withdrawals to perform upgrades on the network (Bithumb, Upbit). Although trading continued, these pauses likely reduced liquidity and increased price swings.

Why it matters:
Even routine maintenance can cause short-term uncertainty, especially when multiple big exchanges act simultaneously. SEI’s 24-hour trading volume dropped 27% to $36.8 million, showing less market activity.

2. Price Trends Show Weakness

Current status:
SEI is trading below key moving averages, such as the 30-day simple moving average (SMA) at $0.1277 and the 200-day exponential moving average (EMA) at $0.2231. The Relative Strength Index (RSI) is at 35.11, indicating the coin is oversold. The MACD indicator also shows negative momentum.

What this means:
There are no clear signs of a price rebound yet. Attempts to break above resistance at $0.1261 have failed (AMBCrypto), suggesting traders expect limited upside in the near term.

Key level to watch:
If SEI can close above $0.1156, which corresponds to a significant Fibonacci retracement level, it might signal some relief.

3. Altcoin Season Is Not Here

Market context:
Bitcoin’s market dominance has increased slightly to 59.15%, while the Altcoin Season Index is at 19 out of 100, indicating that Bitcoin is currently the preferred investment.

What this means:
Investors are moving funds from riskier altcoins like SEI to more stable cryptocurrencies like Bitcoin. Over the past 90 days, SEI has underperformed Bitcoin significantly (-60.91% vs. -18.55%), reflecting this trend.

Conclusion

SEI’s recent price drop is due to a combination of technical weaknesses, reduced liquidity from exchange pauses, and a broader market shift away from altcoins. While the ongoing upgrades may improve Sei’s network in the long run, the immediate focus is on whether the $0.1057 support level (from December 21) holds.

Important to watch: Bitcoin’s price movement—if it falls below $58,000, it could trigger another wave of selling in altcoins like SEI.

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What could affect the price of SEI?

SEI is at a critical point, balancing growing interest from big investors with ongoing doubts in the market.

1. Giga Upgrade (Positive) – A major update aims to boost performance by 10 to 40 times, solving key scaling issues.
2. ETF Plans (Uncertain) – Proposals for SEI-based ETFs face unclear regulatory approval.
3. Token Unlocks (Negative) – Over $20 million worth of tokens will become available soon, which could put downward pressure on the price.

In-Depth Look

1. Giga Upgrade Roadmap (Positive Outlook)

What’s happening: Engineers at Sei Labs have found ways to speed up the network by 10 to 40 times using improvements like RocksDB indexing and parallel processing (Sei Blog). The goal is to reach 200,000 transactions per second (TPS) with final confirmations in under 400 milliseconds. This addresses slow data queries that have been a problem for similar blockchains.

Why it matters: If successful, SEI could become the fastest Ethereum-compatible Layer 1 blockchain. This speed is crucial for applications like decentralized finance (DeFi) and gaming, which need quick responses. A smooth rollout might boost SEI’s performance dramatically, similar to Solana’s 320% gain in 2024. However, delays could allow competitors like Monad to gain an advantage.

2. Institutional ETF Plans (Mixed Outlook)

What’s happening: Several firms, including Canary Capital and 21Shares, have filed to create SEI exchange-traded funds (ETFs) in mid-2025. CoinShares has also launched a European product tied to staked SEI tokens (CBOE Filing). But the U.S. Securities and Exchange Commission (SEC) has yet to approve any ETFs beyond Bitcoin and Ethereum, making the outcome uncertain.

Why it matters: If approved, SEI ETFs could attract large investments, similar to the surge Bitcoin saw after its ETF approval (+160%). On the other hand, rejection could lead to sharp price drops, like the 44% fall Solana experienced after the SEC classified it as a security. SEI’s current trading volume is relatively low, which might make it harder to handle big ETF-driven trades without price swings.

3. Token Unlock Schedule (Negative Outlook)

What’s happening: On December 15, 2025, about 55.56 million SEI tokens (worth roughly $5.4 million) will become available to holders. This is part of a larger release of 3.5 billion tokens expected by 2026 (CoinMarketCap). A previous unlock in July led to a 30% price drop.

Why it matters: SEI is already trading 88% below its all-time high, so new token releases could increase selling pressure unless new buyers step in. The 200-day exponential moving average (EMA) at $0.2416 is a key resistance level. If SEI can climb back above this after the unlock, it would suggest strong demand is absorbing the extra supply.

Conclusion

SEI’s future depends on successfully delivering its technical improvements while managing risks from token unlocks and uncertain ETF approvals. The Giga Upgrade could boost developer interest and network use, but large token releases and regulatory hurdles add challenges. With 824,000 daily active wallets (Messari), SEI has a solid user base that might help offset these risks. Watch the $0.1261 price level closely—a sustained move above this could trap sellers and trigger a rally toward $0.16.

What are people saying about SEI?

The SEI community is divided: some traders are cautious, watching for price moves within a tight range, while others are optimistic about SEI’s technological advantages. Here’s what’s trending:

1. Price battle near the $0.11 support level
2. Debate over undervaluation compared to Sui and Solana
3. Excitement around a major upgrade promising 200,000 transactions per second (TPS)

Deep Dive

1. @Finora_EN: Bearish Price Action

“$SEI hit resistance at $0.1121 and then dropped to $0.1059. This points to a bearish trend.”
– @Finora_EN (5,664 followers · 62,427 impressions · Dec 21, 2025)
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What this means: Short-term technical indicators suggest downward pressure on SEI’s price, with failed attempts to break resistance and lower support levels in sight.

2. @Kaffchad: Bullish Fundamentals

“$680 million in Total Value Locked (TVL) vs. $1.8 billion market cap? SEI looks undervalued compared to Sui ($12 billion) and Solana ($120 billion). Upcoming ETF filings might impact supply.”
– @Kaffchad (19,887 followers · 25,629 impressions · Sep 23, 2025)
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What this means: Supporters highlight SEI’s rapid ecosystem growth—TVL has increased by 4,700% since 2024—and believe this growth isn’t yet reflected in the price, especially with potential institutional interest on the horizon.

3. @SeiNetwork: Upcoming Tech Upgrade

“The Autobahn consensus aims to reach 200,000 TPS, expected to go live in Q1 2026.”
– @SeiNetwork (782K followers · 1,244 impressions · Nov 27, 2025)
View original post
What this means: This major upgrade could attract more developers and users, but the market is waiting to see real adoption. Currently, SEI’s price is still 75% below its all-time high from 2024.

Conclusion

Overall, opinions on SEI are mixed. Technical analysis points to short-term weakness, while fundamental factors suggest long-term potential. Traders are watching the $0.105 to $0.115 price range closely for signs of a breakout. Meanwhile, long-term investors are hopeful that the Giga upgrade launching in early 2026 could spark growth similar to what Solana experienced. Keep an eye on the TVL to Market Cap ratio—if it rises above 0.35x (currently 0.29x), it might indicate growing confidence in SEI’s future.

What is the latest news about SEI?

SEI is managing network upgrades and moves by major institutions while facing challenges in the market. Here’s a quick summary of the latest updates:

1. Bithumb Audit Suspension (December 24, 2025) – SEI transactions were temporarily paused for security checks, but trading stayed active.
2. Mainnet Upgrade (December 22, 2025) – Bithumb and Upbit paused deposits and withdrawals to support an important upgrade to the Sei Network.
3. Market Infrastructure Grid Launch (December 17, 2025) – A new blockchain network designed to help businesses adopt blockchain technology.

Deep Dive

1. Bithumb Audit Suspension (December 24, 2025)

What happened:
South Korea’s Bithumb exchange stopped SEI deposits and withdrawals for two days (December 22–23) to complete a routine security audit required by regulators. Importantly, there were no security issues, and trading continued as usual.

Why it matters:
This shows Bithumb is staying ahead of stricter regulations by being proactive. While this pause might cause short-term drops in liquidity (the ease of buying and selling), similar audits in the past, like Starknet’s 2024 upgrade, have helped build trust over time despite temporary disruptions.
(Kanalcoin)

2. Mainnet Upgrade (December 22, 2025)

What happened:
Both Bithumb and Upbit paused SEI services to support a major upgrade of the Sei Network’s mainnet — the core blockchain system. This upgrade aimed to improve the network’s speed and reliability. The process finished on December 23, and services resumed after confirming everything was stable.

Why it matters:
By coordinating the pause, the exchanges reduced risks during the upgrade and protected users’ assets. This is similar to Ethereum’s well-known “Merge” upgrade. While such upgrades can test traders’ patience in the short term, they generally strengthen the network’s technology and reputation.
(CoinMarketCap)

3. Market Infrastructure Grid Launch (December 17, 2025)

What happened:
Sei Labs introduced the Market Infrastructure Grid, a global blockchain network designed to connect businesses and data systems. It uses Sei’s fast technology to offer decentralized finance (DeFi) solutions suitable for large institutions.

Why it matters:
This move positions SEI as a link between traditional finance and the crypto world, similar to how Ripple targets enterprises. The success of this project depends on whether financial institutions adopt it, which could increase demand for SEI tokens over time.
(Kanalcoin)

Conclusion

SEI is balancing important technical upgrades with market challenges. Its network is evolving to serve businesses better, while exchanges focus on security during these changes. Although trading volume in derivatives is growing (about $32 million daily), SEI’s price remains below a key support level of $0.12. The big question is whether the new Market Infrastructure Grid will attract enough institutional interest to overcome current market weaknesses. Watch how SEI performs around the $0.1261 resistance level after the upgrade for clues about its future direction.

What is expected in the development of SEI?

Sei’s roadmap focuses on technical improvements, growing its ecosystem, and connecting with big institutions.

1. Giga Upgrade (Q4 2025) – Aims for 200,000 transactions per second (TPS) and transaction finality under 400 milliseconds to improve Ethereum-compatible scalability.
2. Market Infrastructure Grid (December 2025) – A framework to help businesses securely integrate with the blockchain.
3. Global Expansion & Listings – Expanding regulated access in Asia and advancing exchange-traded fund (ETF) developments.

Deep Dive

1. Giga Upgrade (Q4 2025)

Overview:
The Giga Upgrade plans to boost Sei’s Ethereum Virtual Machine (EVM) performance to 200,000 TPS and reduce the time it takes to confirm transactions to less than 400 milliseconds. This will make Sei a fast, reliable Layer 1 blockchain suitable for decentralized finance (DeFi), gaming, and institutional applications. Improvements include optimizing SeiDB (the storage system) and enabling parallel processing of Ethereum-compatible transactions (Sei Labs).

What this means:
This upgrade is positive for SEI because it tackles current speed and scalability limits. It could attract developers who want a faster and cheaper alternative to Ethereum. However, any delays or technical challenges might slow down adoption.

2. Market Infrastructure Grid (December 2025)

Overview:
Launching in December 2025, this framework supports enterprise-level blockchain integration across security, liquidity, and data management. Partners like Binance, Kraken, and Fireblocks help with asset custody and validation, while firms such as BlackRock and Apollo are using tokenized real-world assets (RWAs) on the platform (AnhDaDen811).

What this means:
This development is cautiously optimistic. Institutional involvement could bring steady demand and credibility, but success depends on how well real-world assets perform and clear regulatory guidelines.

3. Global Expansion & Listings

Overview:

• Regulated Access: SEI is now available on Hong Kong’s licensed OSL exchange and through OKCoin Japan’s staking service.
• ETF Progress: The Canary Staked SEI ETF ($SEIZ) was listed with the Depository Trust & Clearing Corporation (DTCC) in November 2025, and filings with the U.S. Securities and Exchange Commission (SEC) are ongoing (SeiNetwork).

What this means:
This is good news for SEI’s liquidity and market visibility. However, ETF approvals in the U.S. face regulatory uncertainty. Growth in Asian markets could help balance these risks.

Conclusion

Sei’s roadmap combines cutting-edge technology (Giga Upgrade) with practical uses (Market Infrastructure Grid and tokenized assets) and wider market access. While these upgrades could strengthen Sei’s spot as a high-performance Layer 1 blockchain, competition from platforms like Solana and regulatory challenges around ETFs remain important risks. Will Sei’s parallelized EVM outperform Layer 2 solutions in 2026?

What updates are there in the SEI code base?

Sei’s development is focused on improving tools that connect Ethereum-compatible apps with the Cosmos ecosystem, while keeping its core blockchain stable.

1. EVM Tooling Updates (July 2025) – New command-line tools and software libraries to help developers build Ethereum-style apps on Sei.
2. Core Protocol Stability (Since 2023) – No major changes to the main blockchain since its launch, emphasizing reliability.
3. Parallel Execution Engine – Ongoing improvements to keep Sei’s blockchain fast and efficient.

Deep Dive

1. EVM Tooling Updates (July 2025)

Overview: The sei-js project added new features to support Ethereum Virtual Machine (EVM) compatibility, including:

• A new @sei-js/evm package that lets developers interact with Ethereum-style smart contracts on Sei.
• Support for hardware wallets like Ledger, enabling secure transactions that work across both Cosmos and Ethereum networks.

What this means: This is positive for SEI because it makes it easier for Ethereum developers to create apps on Sei, potentially bringing more decentralized finance (DeFi) projects to the platform. Better wallet support also helps attract everyday users.
(Source)

2. Core Protocol Stability (Since 2023)

Overview: The main sei-chain code hasn’t seen major updates since April 2023. Documentation focuses on keeping the network stable and helping new validators join, with guides on hardware and testnet setup.

What this means: This is neutral for SEI. Stability is good for reliability, but without new features, Sei risks falling behind other blockchains that are rapidly evolving.

3. Parallel Execution Engine

Overview: Recent updates to modules like evmrpc and precompiles show ongoing work to optimize Sei’s parallel EVM. The goal is to reach 200,000 transactions per second (TPS) with final confirmation times under 400 milliseconds.

What this means: This is a strong positive for the long term. Sei’s parallel execution is a key advantage, especially for high-speed trading and institutional applications like real-world assets (RWAs).

Conclusion

Sei is focusing on making it easier for Ethereum developers to build on its platform while keeping its core blockchain stable and reliable. This balance could help grow its app ecosystem without risking network stability. The big question is how Sei’s unique parallel EVM will stack up against new Layer 2 solutions in 2026.