- Sei token continued its remarkable rally this week.
- It has jumped by more than 800% from its lowest point in 2023.
- Kryptonite’s SEILOR token has also continued its bullish momentum.
Sei crypto token approached its record high as demand continued rising ahead of the V2 launch. The token surged to an all-time high of $0.888 on Thursday, bringing the year-to-date gains to over 50%. This makes it one of the top-performing cryptocurrencies in 2024.
Kryptonite growth continues
The main reason why the SEI token price has done well is the recent announcement that the developers are working on V2 of the network. Sei V2 will deploy a backward Ethereum execution environment that will be integrated into Sei’s core binary.
As a result, any Ethereum or Ethereum layer 2 applications will be able to deploy on Sei and take advantage of its high speeds and throughput. Sei can handle over 28k transactions per second. This V2 testnet will be launched in the first quarter followed by a mainnet launch in the first half of the year.
Sei price is also rising because of the ongoing growth of Kryptonite, a liquid staking platform in its ecosystem. Kryptonite’s SEILOR token jumped by over 70% on Thursday as inflows continued rising. The token’s total market cap jumped to more than $27 million.
According to its website, Kryptonite has more than 50k users and a total value locked (TVL) figure of over $2 million. DeFi Llama puts this figure at $750k. Astroport, the biggest DeFi dApp in its ecosystem has a TVL of over $9 million. Meanwhile, Sei’s DeFi TVL has also jumped recently and now stands at over $10 million.
Sei faces several challenges ahead. The main one is its valuation discrepancy since its token is valued at over $1.8 billion. This is a huge figure, especially for a blockchain project that does not have vast developers building using its technology. DeFi Llama identifies only 7 DeFi dApps in its ecosystem.
The other challenge is competition since this industry is now extremely saturated. In addition to Ethereum, it is competing with other layer 1 networks like Tron, Solana, and Avalanche. There are other layer-2 networks like Polygon, Arbitrum, and Optimism.
Further, there is dilution risks since only 23% of the SEI tokens are now unlocked. This means that millions of SEI tokens will come to the market in the coming years.
Sei price forecast
The daily chart reveals that the SEI token has been in a remarkable rally after bottoming at $0.096 in October. It soared to a high of $0.888 on Wednesday. The token has remained above the 50-day and 25-day Exponential Moving Averages (EMA).
At the same time, the Relative Strength Index (RSI) and the MACD show that the token is highly overbought. Therefore, I suspect that a brief pullback will likely happen in the coming days. If this happens, the key reference level to watch will be the psychological point at $0.50.
