Why did the price of SEI fall?

Sei (SEI) increased by 2.49% in the past 24 hours, which was less than the overall crypto market’s gain of 4.13%. Several factors held SEI back:

1. Token unlock pressure – On January 15, 55.56 million SEI tokens (worth about $6.1 million) became available, adding selling pressure.
2. Technical resistance – The price hit a barrier at $0.128, a key technical level, and was pushed back.
3. Market-wide leverage reduction – $220 million in Bitcoin liquidations caused caution among investors, affecting altcoins like SEI.

Deep Dive

1. Selling Pressure After Token Unlock (Negative Impact)

What happened:
On January 15, 55.56 million SEI tokens were unlocked, representing about 1% of the tokens currently circulating. Although this is smaller compared to some other projects (for example, ONDO had a $772 million unlock), it came right after a large wave of token unlocks across the crypto market totaling $1.7 billion (Yahoo Finance). This overall market event lowered investor confidence.

Why it matters:
When tokens unlock, early investors often sell some of their holdings to take profits. SEI’s unlock happened during a time when the market was already cautious, which increased selling pressure.

What to watch:
Keep an eye on wallet activity for these unlocked tokens, especially movements to exchanges, which can be tracked using tools like Nansen.

2. Technical Resistance at $0.128 (Mixed Impact)

What happened:
SEI’s price tried to rise above $0.128 but was pushed back. This price level corresponds to the 23.6% Fibonacci retracement, a common technical indicator used to predict resistance points. Additionally, the 7-day Relative Strength Index (RSI) was at 62.49, close to the overbought zone, which often leads traders to take profits.

Why it matters:
Traders often sell near these technical resistance levels, especially when momentum indicators suggest the asset is overbought. SEI’s inability to hold above $0.128 triggered automated sell orders and stop-losses.

3. Market-Wide Leverage Reduction (Negative Impact)

What happened:
Bitcoin saw $220 million in liquidations over 24 hours, a 300% increase, according to Coinglass. This caused traders to reduce their exposure to altcoins like SEI. Overall, crypto market open interest dropped by 2.89%, indicating a broad reduction in leveraged positions.

Why it matters:
Leverage amplifies price swings. When Bitcoin’s price dropped sharply, traders cut back on riskier assets, including SEI, even though SEI’s Fear & Greed Index was neutral at 52.

Conclusion

SEI’s modest 2.49% gain over 24 hours shows a balance between positive technical signals (like rising short-term moving averages) and negative market forces (token unlocks and leverage reduction).

Key point to watch: Will SEI break above $0.128 with strong trading volume to confirm a bullish move, or will the selling pressure from unlocked tokens keep it stuck at lower prices?

{{technical_analysis_coin_candle_chart}}

What could affect the price of SEI?

SEI’s price outlook is mixed, balancing major technology upgrades and growing institutional interest against upcoming token unlocks and market fluctuations.

1. Giga Upgrade: Promises faster transactions (200,000 per second), but timing and delivery are key.
2. Token Unlocks: Scheduled for January 15, 2026, these could lead to short-term selling if market sentiment weakens.
3. Institutional Interest: Investments from firms like BlackRock and pending ETF approvals may support long-term demand.

Deep Dive

1. Giga Upgrade (Positive Impact)

Overview:
The Giga Upgrade, planned for the first quarter of 2026, aims to boost SEI’s transaction speed to over 200,000 transactions per second with final confirmation times under 400 milliseconds. This is achieved through improvements like parallel block proposals and better data storage (Sei Labs). These upgrades position SEI as a fast and efficient platform for decentralized finance (DeFi) and trading applications. Testing is currently underway on a developer network.

What this means:
If successful, this upgrade could attract developers from Ethereum and other platforms looking for faster and more scalable solutions. Increased developer activity and user adoption often lead to higher demand for the SEI token. Similar technology improvements in other projects, like Solana, have historically led to price increases when adoption follows.

2. Token Unlocks (Negative Impact)

Overview:
On January 15, 2026, 55.56 million SEI tokens (worth about $6.9 million at current prices) will be unlocked, increasing the circulating supply by about 1.05%. This is part of a regular monthly unlocking schedule. Past unlock events have sometimes coincided with price drops (TradingView).

What this means:
When tokens are unlocked, holders may sell them, increasing supply and potentially putting downward pressure on the price, especially if market liquidity is low. However, if institutional investors absorb these tokens, the negative impact could be limited. Traders should watch for increased token movement on exchanges after the unlock date.

3. Institutional Adoption (Positive Impact)

Overview:
SEI is gaining traction with major financial players. BlackRock, Apollo, and Hamilton Lane have tokenized funds on SEI, and Circle holds 6.25 million SEI tokens, making it the largest crypto asset in their portfolio. Additionally, Canary Capital has filed for a staked-SEI ETF, which is currently under review by the U.S. Securities and Exchange Commission (Coinpedia).

What this means:
If the ETF is approved, it could bring significant new investment, similar to the boost Bitcoin saw with its ETF inflows in 2024. The growth of real-world asset (RWA) tokenization on SEI ties the platform’s value to traditional finance, potentially increasing its long-term utility and demand. However, regulatory delays could slow this progress.

Conclusion

SEI’s price in 2026 will largely depend on how well the Giga Upgrade is executed and whether institutional interest can offset the effects of token unlocks. In the short term, watch how the market absorbs the January 15 token unlock. Over the longer term, keep an eye on real-world asset inflows and ETF approval decisions.

How will SEI’s overall network activity change after the Giga Upgrade?

{{technical_analysis_coin_candle_chart}}

What are people saying about SEI?

The SEI community is buzzing with excitement about a possible breakout, balancing short-term concerns with confidence in the technology’s long-term potential. Here’s what’s trending:

1. Growing user base and price stability suggest a breakout could be near (bullish)
2. On-chain activity is rising even though prices are flat, indicating the token might be undervalued (bullish)
3. Upcoming token unlocks could put short-term pressure on prices, but the strong fundamentals support growth over time (mixed)

Deep Dive

1. @cryptdegenerate: Consolidation Before Breakout (bullish)

"$SEI consolidating. Breakout above the pattern will pump the chart🚀"
– @cryptdegenerate (5.4K followers · Jan 2, 2026, 07:43 UTC)
View original post
What this means: This is a positive sign for SEI. The token is holding steady around $0.12 after ranking 7th in daily active users with 1.3 million users. This suggests investors are accumulating SEI before a potential price increase.

2. @0xfadil_: On-Chain Activity Defies Price (bearish)

"While SEI trades around $0.12, on-chain activity is telling a different story."
– @0xfadil (1.4K followers · Jan 5, 2026, 08:26 UTC)
[View original post](https://x.com/0xfadil/status/2008092828165984721)
What this means: This is a warning sign. Even though SEI’s blockchain activity is high—36.7 million transactions weekly—the price hasn’t increased. This gap between usage and price could be a red flag.

3. @realpancaYT: Unlock Fears vs. Long-Term Vision (mixed)

"Many tokens unlock every 15th... dilution can make price falter but doesn't change strong roots. Most bullish project next few years."
– @realpancaYT (2K followers · Dec 31, 2025, 00:23 UTC)
View original post
What this means: This is a mixed signal. Regular token unlocks could cause short-term price drops due to increased supply. However, SEI’s strong technology and infrastructure suggest it’s well-positioned for growth in 2026 if demand keeps pace.

Conclusion

Overall, the outlook for SEI is cautiously optimistic. Technical traders are watching for breakout patterns, while long-term supporters point to SEI’s impressive 200,000 transactions per second (TPS) capability and recent institutional interest through ETF filings. However, upcoming token unlocks could create some short-term challenges. Keep an eye on whether SEI maintains support around $0.10 after the next unlock cycle on January 15 for clues on its future direction.

What is the latest news about SEI?

Sei is managing exchange maintenance and token unlocks while watching for key price movements. Here’s the latest update:

1. Upbit Pauses SEI Transfers (January 13, 2026) – Wallet maintenance temporarily stops deposits and withdrawals, but trading continues.
2. $6.7 Million SEI Token Unlock (January 15, 2026) – 55.56 million SEI tokens enter the market, testing how well demand can absorb the new supply.
3. SUI vs. SEI Technical Showdown (January 12, 2026) – Experts debate which Layer-1 blockchain will break out of its current price range first.

In-Depth Look

1. Upbit Pauses SEI Transfers (January 13, 2026)

What Happened?
South Korea’s Upbit exchange temporarily stopped SEI deposits and withdrawals for wallet maintenance on January 13, 2026. The pause is part of security upgrades and network improvements. Trading on the platform remains active, but users can’t move SEI tokens in or out during this time. This is similar to a network upgrade pause Binance had in 2025. Such maintenance breaks are common but remind us how much liquidity depends on exchanges.

What It Means for You
This is mostly neutral in the short term. Since the maintenance was announced clearly, prices only dipped slightly (about 0.3%). However, if these pauses last longer or other exchanges follow suit, it could reduce liquidity and affect trading. Keep an eye on when transfers resume.
(Source: BitcoinWorld)

2. $6.7 Million SEI Token Unlock (January 15, 2026)

What Happened?
On January 15, 2026, 55.56 million SEI tokens (about 1.05% of the total supply) were unlocked as part of Sei’s regular monthly vesting schedule. This follows a larger $9.15 million unlock in December 2025, which coincided with an 8% price drop amid wider market volatility.

What It Means for You
Token unlocks can increase selling pressure since more tokens become available to trade. However, SEI’s daily trading volume of $68 million suggests the market can handle this new supply moderately well. Also, growing staking activity—offering around 9% annual returns—may encourage holders to keep their tokens locked up, helping offset potential price drops.
(Source: CoinMarketCap)

3. SUI vs. SEI Technical Showdown (January 12, 2026)

What Happened?
SEI’s price has been moving within a downward channel since 2024, struggling to break above the $0.20 resistance level. In contrast, SUI is showing a bullish pattern with rising price lows, though both coins are experiencing low trading volumes. Technical indicators show SEI is seeing capital outflows, while SUI is showing signs of accumulation.

What It Means for You
Technically, SEI looks bearish right now. If it can break above $0.20, it could signal a positive shift in momentum. But if it fails, the price might retest support around $0.12. Meanwhile, SUI’s stronger price structure might attract more traders in the short term.
(Source: TradingView)

Conclusion

SEI is facing mixed signals. Exchange maintenance and token unlocks create challenges, but technical indicators and ecosystem growth—like over 500,000 daily gaming wallets—offer potential for a rebound. With the altcoin market gaining momentum (+17.39% weekly), SEI’s ongoing infrastructure upgrades and its partnership with Xiaomi, which reaches 680 million users, could help push the price above the key $0.20 level.

What is expected in the development of SEI?

Sei’s 2026 roadmap is focused on growing its technology, increasing user adoption, and boosting the usefulness of its ecosystem through these key milestones:

1. GIGA Mainnet Upgrade (Q1 2026) – Aiming for 200,000 transactions per second (TPS) and transaction finality under 400 milliseconds.
2. Xiaomi Wallet Integration (2026) – Pre-installed on over 170 million devices sold annually outside China and the U.S.
3. Token Unlock (January 15, 2026) – 55.56 million SEI tokens (about 1.05% of total supply) will enter circulation.
4. Market Infrastructure Grid (Q1 2026) – Building institutional capital pathways for real-world assets (RWA) and decentralized finance (DeFi).
5. Asia Expansion (Ongoing) – Securing regulatory approvals in Japan and Korea, plus listings on centralized exchanges (CEX).

Deep Dive

1. GIGA Mainnet Upgrade (Q1 2026)

Overview: The GIGA upgrade plans to boost Sei’s network speed to 200,000 TPS with transaction finality in less than 400 milliseconds. This is achieved by using advanced techniques like parallel block proposals and asynchronous execution (Sei Labs). This upgrade aims to make Sei suitable for fast-paced financial applications and AI-driven transactions.
What this means: This is a positive step for SEI as a high-performance Layer 1 blockchain. However, scaling this much while keeping the network decentralized is technically challenging and carries some risks.

2. Xiaomi Wallet Integration (2026)

Overview: Xiaomi will pre-install wallets powered by Sei on more than 170 million devices sold annually outside China and the U.S. Additionally, SEI-based payments will be accepted at over 20,000 retail stores (Tanaka_L2).
What this means: This could significantly increase user adoption. However, the real impact depends on how many merchants and consumers actually use SEI for payments.

3. Token Unlock (January 15, 2026)

Overview: On this date, 55.56 million SEI tokens (about 1.05% of the total supply) will be unlocked, mostly allocated to early investors and team members (TradingView).
What this means: This could create short-term selling pressure if many tokens are sold immediately. However, this risk may be balanced if the ecosystem continues to grow or if tokens are staked.

4. Market Infrastructure Grid (Q1 2026)

Overview: This initiative will connect stablecoins like USDC, USDT, and PYUSD through LayerZero and CCTP technologies to make it easier for institutional investors to move capital into Sei’s DeFi ecosystem (Kaffchad).
What this means: This is a positive development for increasing total value locked (TVL) in Sei’s DeFi projects. Big players like BlackRock and Brevan Howard are reportedly testing these systems. However, competition from Chainlink’s CCIP remains.

5. Asia Expansion (Ongoing)

Overview: Sei has recently been listed on Binance Japan, OKX Japan, and OSL Hong Kong, which offers regulated custody services. This is part of a strategy to reach Asia’s 300 million+ crypto users (Tanaka_L2).
What this means: Asia accounts for about 60% of global crypto trading volume, so this expansion could boost liquidity. Still, regulatory changes in the region could affect the timeline.

Conclusion

Sei’s 2026 roadmap combines technical improvements (GIGA upgrade), broad user access (Xiaomi integration), and institutional partnerships (Market Infrastructure Grid). Together, these efforts could strengthen Sei’s role in DeFi and gaming infrastructure. However, the upcoming token unlock and dependence on partner execution introduce some uncertainty.

The key question remains: will Sei’s ecosystem growth keep pace with the increase in token supply?

What updates are there in the SEI code base?

Sei’s latest updates focus on making it easier for developers and node operators, improving data storage, and building stronger infrastructure for big institutions.

1. seictl Tool Release (November 27, 2025) – A new tool that automates node setup to help operators work more efficiently
2. SeiDB Repository Migration (October 2025) – Moved storage system into the main code to speed up data handling and syncing
3. Giga Upgrade Development (December 30, 2025) – Preparing a major upgrade for early 2026 to boost transaction speed and support complex applications

Deep Dive

1. seictl Tool Release (November 27, 2025)

What it is: A command-line tool that automates setting up and monitoring nodes (the computers that keep the network running). It simplifies tasks like checking configurations and managing groups of nodes.
This tool reduces the need for manual work, helping node operators quickly diagnose issues and keep everything running smoothly. It tackles common challenges like hardware checks and syncing status.
Why it matters: This is good news for SEI because it lowers the technical hurdles for people running nodes, which can lead to more participants and a stronger, more reliable network.
(Source)

2. SeiDB Repository Migration (October 2025)

What it is: The storage system that manages blockchain data (SeiDB) was merged into the main codebase. This change improves how the network handles and accesses data, making syncing faster and reducing storage needs.
By separating current state data from historical data, the network cuts down on storage growth by 90% and speeds up block processing. This means full nodes can run more efficiently.
Why it matters: This upgrade boosts SEI’s performance and scalability. Faster syncing and lower storage requirements can attract more node operators, helping keep the network decentralized and robust.
(Source)

3. Giga Upgrade Development (December 30, 2025)

What it is: A major upgrade planned for early 2026 aiming to handle over 200,000 transactions per second (TPS) using parallel processing of smart contracts on the Ethereum Virtual Machine (EVM).
It introduces multi-proposer consensus and asynchronous processing to finalize transactions in under 400 milliseconds. Current testing focuses on meeting the demands of decentralized finance (DeFi) and artificial intelligence (AI) applications.
Why it matters: This positions SEI as a high-performance blockchain capable of supporting fast, complex use cases. If successful, it could set SEI apart from other Layer 1 blockchains by enabling new types of applications.
(Source)

Conclusion

Sei is focusing on building a more resilient and scalable network by improving developer tools and optimizing data storage. The upcoming Giga upgrade could be a game-changer, but its real impact will depend on how well it performs once launched on the mainnet.