Sei Token Faces Challenges Despite Ecosystem Growth
Sei (SEI), a rapidly expanding layer-1 network, is experiencing a price decline. ItS nearing its all-time low, despite its ecosystem’s impressive growth. Over the past four weeks, SEI has seen a continuous drop, now trading at its lowest since november 2023, down 78% from its peak.
Despite the price dip, the Sei network’s total value locked (TVL) has surged by 70% in the last 30 days, reaching $406 million. This makes it the 17th-largest chain in the crypto industry by TVL, according to DeFi Llama.
Key dApps within the Sei ecosystem have also seen asset growth. Yei Finance, a competitor to AAVE, has seen its assets rise by 72% in the past month to $215 million. sailor, a decentralized exchange (DEX), holds $60.65 million in assets, while Avalon Labs has seen a 50% increase.
- Decentralized exchanges on Sei handled $110 million in volume last week, up 62% from the previous week.
- The top DEX networks are Sailor, Dragon Swap, and Uniswap.
Despite the price drop, Sei has the most bullish sentiment on CoinMarketCap, standing at 88.5%. This sentiment is likely due to the network’s strong fundamentals and user growth.
Technically, SEI is in a steep downtrend, trading below its 50-period moving average. Though, it has formed a falling wedge pattern, a bullish reversal structure. If a breakout occurs, the initial target will be $0.2920. A drop below the year-to-date low would invalidate this bullish outlook.
