2023-8-18 08:00 |
Sei crypto price has plunged by more than 80% from the highest level this week as demand for the token eased. The token plunged to a low of $0.1664 on Friday, down from its all-time high of ~$1. This decline brought the total market cap to slightly under $300 million.
SEI price chart
SEI Blockchain faces strong competitionSei Blockchain is a layer-1 network backed by some well-known investors like Foresight Ventures, Bitget, and other companies. It recently raised $30 million from these investors, giving it a valuation of $800 million.
Sei Blockchain’s goal is to disrupt the highly competitive layer-1 industry. It aims to attract developers who are attracted to its features, which include lower transaction fees and fast processing speeds. It can handle over 20,000 transactions per second.
The challenge for Sei is that it is entering an industry that is already saturated. For example, other layer-1 networks like Bitgert, Hedera Hashgraph, Cardano, and Kadena have higher transaction speeds and lower costs.
In addition to this, there are layer-2 networks that scale Ethereum’s network. The most popular L2 networks are Arbitrum, Optimism, and Polygon. Consensys, the creator of MetaMask, and Coinbase have also launched Linea and Base, their L2 networks.
SEI ‘s primary focus is trading. The developers aim to attract the biggest developers in both DeFi and other areas, including carbon trading and tokenization.
Pacific-1 Public Launch is here.
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In addition to the rising competition, SEI price is falling because of several other reasons. First, most new cryptocurrencies surge in their first trading day and then slump as the momentum wanes and as insiders start to liquidate their tokens. Some of the top coins that popped and dropped are WorldCoin, Aptos, and Sui.
Second, SEI price dropped because of the rising fear of more dilution in the coming years. SEI has a maximum supply limit of 10 billion tokens while the current circulating supply is 1.8 billion tokens. This means that over 8.2 billion tokens will be unlocked in the next few years, leading to more dilution.
Further, SEI crypto price is also plunging because of the ongoing sell-off. As I wrote in this article, most cryptocurrencies have plunged, with Bitcoin falling below $26,000. Other coins like Ethereum, Solana, and Zilliqa have also retreated.
This decline is also in line with the performance of other financial assets like stocks, commodities, and bonds.
Watch here: https://www.youtube.com/embed/F-QQx9uBNYk?feature=oembedThe post Here’s why the SEI crypto price has nosedived appeared first on Invezz.
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