Why did the price of SEI fall?

Sei (SEI) dropped 6.69% in the last 24 hours, underperforming the overall crypto market, which fell 2.71%. Here’s why:

1. Market correction – Altcoins like SEI took a hit as Bitcoin’s dominance increased to 59.04%.
2. Technical breakdown – SEI fell below important support levels, with indicators showing bearish momentum.
3. Liquidity squeeze – High leverage trading led to forced sell-offs, adding to the downward pressure.

Deep Dive

1. Market Correction (Negative Impact)

What happened: The entire cryptocurrency market declined by 2.71% in one day. Bitcoin’s share of the market (called dominance) rose to 59.04%, meaning investors moved money out of altcoins and back into Bitcoin. The Altcoin Season Index, which measures how well altcoins are doing, dropped 7.14% over the week to 26, showing less interest in altcoins like SEI.

Why it matters: SEI is a mid-sized altcoin, so it’s more affected by overall market mood than big coins like Bitcoin. When Bitcoin dominance goes up, money usually leaves altcoins first, making SEI’s price fall more sharply than the average.

2. Technical Breakdown (Negative Impact)

What happened: SEI’s price fell below its 7-day and 30-day simple moving averages (SMA), which are key support levels at $0.1208 and $0.1180. The MACD indicator showed bearish signals, and the RSI dropped to 34.21, indicating the coin is oversold. Resistance was confirmed at $0.1284 by Fibonacci retracement levels.

Why it matters: Breaking these support levels triggered automatic sell orders and stop-losses, pushing the price down further. The oversold RSI suggests SEI might bounce back soon, but to recover, it needs to climb back above $0.1208. If it fails to hold the $0.105 support level, the price could drop further to around $0.069.

What to watch: A daily close above $0.115 would suggest short-term price stabilization.

3. Liquidity Squeeze (Negative Impact)

What happened: SEI’s 24-hour trading volume jumped 195% to $82.7 million, driven by traders using high leverage (borrowed money). When the price broke key levels, many leveraged positions were liquidated (forced to sell), increasing selling pressure. Derivatives data shows more traders betting on price drops (short positions).

Why it matters: These liquidations caused a chain reaction of selling, pushing the price down faster. The high volume without price recovery means sellers are dominating, not buyers accumulating SEI.

What to watch: A decrease in open interest (currently $637.87 billion across the market) would indicate that traders are closing positions and the selling pressure might ease.

Conclusion

SEI’s recent price drop is due to a combination of factors: a broad market pullback, technical breakdowns below key support levels, and forced selling from leveraged traders. The $0.105 to $0.115 price range is now a critical zone for buyers to defend to avoid a deeper decline.

Key point: Watch if SEI can stay above its January low of $0.106 with decreasing trading volume by Wednesday to signal potential stabilization.

What could affect the price of SEI?

Sei (SEI) is facing some short-term challenges but has promising factors that could help it recover.

1. Giga Upgrade Coming Soon – With speeds of 200,000 transactions per second (TPS) and super-fast confirmation times under 400 milliseconds, this upgrade could attract more developers and increase the network’s usefulness.
2. Institutional Interest Growing – Sei is part of Wyoming’s stablecoin pilot program and has a staked-SEI ETF filing under review, which might bring more regulated investment.
3. Technical Signs Point to a Bounce – The token is currently oversold, and strong price support around $0.106 could lead to a rebound.

In-Depth Look

1. Giga Upgrade (Positive Outlook)

What’s Happening:
The Giga upgrade is in its final testing phase and expected in early 2026. It aims to boost Sei’s speed to 200,000 TPS and reduce transaction finality to under 400 milliseconds by using parallel processing and optimizing the Ethereum Virtual Machine (EVM). This makes Sei well-suited for fast-paced decentralized finance (DeFi), artificial intelligence (AI) transactions, and attracting institutional users.

Why It Matters:
If successful, this upgrade could set Sei apart from competitors like Solana and Sui, encouraging developers to build more apps on Sei and increasing transaction volume. For example, Solana’s similar upgrade, Firedancer, led to price gains of over 30%. However, if the upgrade is delayed or doesn’t perform as expected, it could slow down Sei’s growth.

Learn more at Sei Network.

2. Regulatory Developments (Mixed Impact)

What’s Happening:
Wyoming’s WYST stablecoin pilot, planned for July 2026, has chosen Sei as a finalist, showing that Sei meets important regulatory standards. Additionally, Canary Capital has filed for a staked-SEI ETF, which is currently under review by the U.S. Securities and Exchange Commission (SEC). On the downside, a scheduled token unlock on January 15 will release $6.1 million worth of SEI tokens, which could increase selling pressure.

Why It Matters:
Regulatory approval and pilot programs can attract more cautious, institutional investors. But any delays or rejections could hurt market confidence. Also, the token unlock means more tokens will be available to sell, so demand needs to keep up to prevent price drops of 5-10%.

More details at Wyoming Stable Token Commission.

3. Technical and Market Sentiment (Positive Signs)

What’s Happening:
SEI’s Relative Strength Index (RSI) is around 42.11, close to oversold territory, and the price has strong support at $0.106. If the price breaks above $0.115, it could rise toward $0.136. The network shows healthy activity with 1 million daily active users and $380 million in decentralized exchange (DEX) volume over 12 days.

Why It Matters:
When a token is oversold, it often rebounds. For example, SEI’s price jumped 13% after Wyoming’s pilot news. Continued user growth and a strong altcoin market (Altcoin Season Index up 100% month-over-month) could help push SEI’s price higher.

See more at CoinMarketCap Community.

Conclusion

SEI’s price has potential to bounce back if the Giga upgrade is successful and institutional investments increase. However, token unlocks and broader market risks remain challenges. Traders should watch the $0.106 support level and RSI trends for signs of momentum shifts.
Will Wyoming’s stablecoin pilot be the catalyst that pushes SEI above $0.15? Time will tell.

What are people saying about SEI?

The conversation around Sei (SEI) swings between optimistic price targets and concerns about potential drops. Here’s what’s making headlines:

1. Optimists aim for $3 as overall market trends look favorable
2. Pessimists warn of a drop below the $0.10 support level
3. Activity on the network is strong despite price staying flat
4. Growth in the Sei ecosystem is driving interest from big investors

In-Depth Look

1. @TheMoonHailey: Positive market patterns suggest upside 🚀 Bullish

"#Sei Macro Bullish Scenario: $SEI has great potential if we get a bullish crypto market. Bull Case Target: $3.0 per $SEI"
– @TheMoonHailey (85K followers · 45K impressions · 2025-12-24 18:55 UTC)
View original post
What this means: This outlook is optimistic for SEI. It suggests that if the overall cryptocurrency market improves, SEI could see significant gains, attracting traders looking for momentum.

2. @CryptoFeras: Warning of a drop below key support Bearish

"$SEI lost key support at $0.15. Imo heading toward ATL ~9-10 cents to rebuild ground"
– @CryptoFeras (92K followers · 28K impressions · 2025-12-25 10:01 UTC)
View original post
What this means: This is a cautious signal. Losing the $0.15 support level could lead to further price declines, possibly down to around $0.10, which might trigger more selling.

3. @0xfadil_: Network activity rises despite flat price Neutral

"While SEI trades at $0.12, on-chain activity tells a different story. Daily Brief: 👇"
– @0xfadil (1.4K followers · 18K impressions · 2026-01-05 08:26 UTC)
[View original post](https://x.com/0xfadil/status/2008092828165984721)
What this means: This is a mixed signal. Even though the price isn’t moving much, the increased activity on the Sei blockchain suggests the network is being used more, which could be a positive sign for the future.

4. @SeiNetwork: Big investors and partners join in Bullish

"November on Sei: $30M RWAs added, Binance validation, Robinhood listing, 4B lifetime transactions"
– @SeiNetwork (781K followers · 210K impressions · 2025-11-27 17:06 UTC)
View original post
What this means: This is a strong positive. The addition of $30 million in real-world assets (RWAs), support from major exchanges like Binance and Robinhood, and hitting 4 billion transactions show growing trust and adoption, which can boost SEI’s value and usability.

Conclusion

Opinions on SEI are mixed. Supporters point to growing institutional interest and promising technical setups, while skeptics focus on weak price support levels. Development and network activity indicate potential that isn’t yet reflected in the price. Keep an eye on the $0.105 support level—if it breaks, it could lead to more selling, but if it holds, it might signal accumulation. Also, watch network growth for signs of strength beyond price movements.

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What is the latest news about SEI?

Sei (SEI) is showing signs of technical recovery while balancing the challenges from recent token unlocks.

1. SEI Technical Recovery Signals (January 17, 2026) – The Relative Strength Index (RSI) near 50 hints at possible price gains if SEI breaks key resistance levels.
2. Giga Upgrade Final Phase (January 17, 2026) – The transition to an Ethereum Virtual Machine (EVM)-only system aims to boost scalability significantly.
3. Token Unlock Impact (January 15, 2026) – 55.56 million SEI tokens were released, putting some pressure on the market to absorb the new supply.

Deep Dive

1. SEI Technical Recovery Signals (January 17, 2026)

Overview: SEI is trading around $0.122. Analysts are watching the RSI, a tool that measures momentum, which is close to 50—a level that could indicate a potential upward move if SEI breaks through the $0.1363 resistance price. If it fails, the price might drop to the support level of $0.1114. The network remains active, with about 1 million daily users and $380 million in decentralized exchange (DEX) trading volume over the past 12 days.
What this means: This is a positive sign for SEI because strong user activity and trading volume can help push the price up. However, if SEI fails to hold support, especially in a weak market, the price could fall.
(CoinMarketCap Community)

2. Giga Upgrade Final Phase (January 17, 2026)

Overview: Sei is completing the last stage of the SIP-3 upgrade, moving to an EVM-only architecture. This simplifies the system and aims to increase transaction speed by up to 50 times, with transaction finality (confirmation) in under 400 milliseconds.
What this means: This upgrade is good news for SEI because it makes the platform more attractive to developers familiar with Ethereum, improving scalability and performance. This could help Sei grow in areas like decentralized finance (DeFi) and gaming.
(CoinMarketCap Community)

3. Token Unlock Impact (January 15, 2026)

Overview: On January 15, 55.56 million SEI tokens (about 1.05% of the circulating supply) were unlocked. This increases the number of tokens available for sale, which can put downward pressure on the price. This release follows Sei’s planned token schedule but has caused some price fluctuations.
What this means: In the short term, this is a negative factor because more tokens on the market can dilute value. However, in the long term, it’s neutral since these unlocks are expected and part of the token’s design. The market’s ability to absorb this supply will be key.
(TradingView)

Conclusion

Sei’s technical improvements and growing user base could help the token recover, but the recent token unlocks create short-term challenges for price stability. The big question for Q1 2026 is whether the benefits from the Giga upgrade’s scalability will outweigh the selling pressure from unlocked tokens.

What is expected in the development of SEI?

Sei’s roadmap for 2026 focuses on improving its technology, growing its community, and attracting institutional investors.

1. Giga Mainnet Launch (Q1 2026) – Aiming to handle over 200,000 transactions per second (TPS) for Ethereum-compatible apps.
2. Xiaomi Wallet Integration (2026) – Sei-powered crypto wallets pre-installed on Xiaomi smartphones worldwide.
3. Staked SEI ETF Progress (2026) – Review by the U.S. Securities and Exchange Commission (SEC) for a regulated investment fund.
4. Ecosystem Funding Expansion – Grants, hackathons, and programs to support developers and creators.

Deep Dive

1. Giga Mainnet Launch (Q1 2026)

Overview
The Giga upgrade, planned for early 2026 (Sei Labs), aims to boost Sei’s network speed to over 200,000 transactions per second with transaction finalization times under 400 milliseconds. This is achieved through advanced technology like parallel block proposals and asynchronous execution. The goal is to make Sei one of the fastest blockchains compatible with Ethereum apps, supporting high-speed use cases such as AI-driven payments and decentralized finance (DeFi) for institutions.

What this means
Positive: Faster speeds could attract developers building apps that need quick responses, like gaming or trading platforms.
Risks: Potential delays in development or competition from other fast networks like Solana.

2. Xiaomi Wallet Integration (2026)

Overview
Sei plans to have its crypto wallet and stablecoin finance app pre-installed on Xiaomi smartphones sold outside the U.S. and China (CoinDesk). Xiaomi has over 500 million users globally, which could make it easier for people to access Sei’s blockchain ecosystem directly from their phones.

What this means
Positive: This could lead to widespread adoption, especially in regions where mobile usage is high.
Neutral: Success depends on how well users are onboarded and how regulations are handled in different countries.

3. Staked SEI ETF Progress (2026)

Overview
Canary Capital has proposed a staked SEI exchange-traded fund (ETF), which is currently under review by the SEC. If approved, this ETF would allow investors to gain regulated exposure to SEI tokens, similar to how Bitcoin ETFs have attracted institutional money. Analysts estimate a 60-70% chance of approval by mid-2026 (CryptoPotato).

What this means
Positive: Approval could bring significant institutional investment into Sei.
Negative: Delays or rejection by the SEC could slow down interest and growth.

4. Ecosystem Funding Expansion

Overview
The Sei Foundation’s plans for 2025 include:

• Builders: Offering grants and retroactive funding to developers (Sei Blog).
• Creators: Allocating $250,000 to the “Street Team” to promote Sei at global events.
• Contributors: Providing early access to new features and opportunities to participate in governance.

What this means
Positive: These initiatives encourage long-term growth and innovation in the Sei community.
Risks: Success depends on attracting and retaining talented developers and creators.

Conclusion

Sei’s 2026 plans focus on delivering ultra-fast blockchain performance (Giga), expanding real-world use through Xiaomi integration, and opening doors to institutional investors with the staked SEI ETF. While these milestones could strengthen Sei’s position as a leading high-speed Layer 1 blockchain, challenges remain around regulatory approval and user adoption.

Will Sei’s parallelized EVM technology outperform Layer 2 solutions in attracting developers?

What updates are there in the SEI code base?

Sei’s latest software updates are focused on preparing for the upcoming Giga upgrade and improving tools for developers working with Ethereum-compatible apps.

1. Giga Upgrade Prep (Q4 2025) – Finalizing improvements to run many transactions in parallel and optimize data storage to handle over 200,000 transactions per second (TPS).
2. EVM Tooling Update (July 2025) – New software libraries to make it easier to build and launch Ethereum-compatible decentralized apps (dApps) on Sei.
3. Validator Optimization (Jan 2026) – Enhancements to improve node stability and updated hardware requirements for those running network validators.

Deep Dive

1. Giga Upgrade Prep (Q4 2025)

Overview: This major upgrade introduces parallel block processing using a system called Autobahn consensus and improves the SeiDB storage layer. The goal is to reach over 200,000 transactions per second with transaction finality (confirmation) times under 400 milliseconds by reorganizing how the blockchain manages its data.

What this means: This is positive news for Sei (SEI) because faster transaction processing and quicker finality could make it competitive with platforms like Solana, especially for high-speed decentralized finance (DeFi) and gaming applications. The storage improvements may also cut down the time it takes for new nodes to sync with the network by about 60% (Source).

2. EVM Tooling Update (July 2025)

Overview: The @sei-js software package now supports EVM precompiles and integrates wallets that follow the Ethereum Improvement Proposal 6963 (EIP-6963) standard. This makes it easier for developers to deploy Ethereum-native dApps on Sei’s parallel execution platform.

What this means: This update is neutral for SEI’s core value but lowers the technical barriers for developers. For example, projects like Yei Finance have successfully used these tools to launch on Sei with minimal code changes (Source).

3. Validator Optimization (Jan 2026)

Overview: Recent updates focus on improving the stability of validator nodes by enhancing state synchronization and specifying hardware requirements—64GB RAM and 1TB NVMe SSD. The documentation now includes detailed instructions for managing validator clusters using Docker.

What this means: This is neutral for SEI’s overall outlook but improves network reliability. However, the higher hardware requirements may increase operating costs for validators. These changes help prevent downtime during periods of very high transaction volume, such as the 1.6 million daily transactions recorded in December 2025 (Source).

Conclusion

Sei’s development efforts are clearly focused on scaling the network (with the Giga upgrade) and improving Ethereum compatibility (through better developer tools). While these infrastructure improvements strengthen the network, they don’t introduce major changes to the core protocol. One question remains: as throughput demands grow, will the rising costs for validators lead to centralization risks?