Is Sei Going to Zero? SEI Price Declines 10% as New Mining System Bags $5 Million in Crowdfunding Efforts
Digital asset trading focused layer-1 blockchain Sei (SEI) has seen its token price pull back over 12% in the past 24 hours.
Sei, whose token debuted on major exchanges in August, was last trading just under $0.28 per token, down from the multi-month highs in the upper $0.31s it hit earlier this week.
Despite the recent pullback, SEI’s bullish trend remains very much intact.
The cryptocurrency is still up around 200% from its October all-time lows under $0.10.
SEI has been pumping alongside a surge in risk appetite in the broader crypto market, thanks primarily to optimism about near-term spot Bitcoin ETF approvals in the US (which is expected to accelerate institutional adoption of crypto) and amid hopes for a near-term dovish pivot in the Fed’s monetary policy.
As per a dashboard created Sei Daily on Flipside, the Sei network has been experiencing solid growth in weekly transactions since May, which could also have helped fuel the recent rally.
However, the same dashboard shows weakness in the number of unique weekly active users interacting with the blockchain, a sign these high transactions are being driven by a small number of participants.
That could suggest a lack of notable adoption of the blockchain since its launch earlier this year, and could also suggest that weekly transaction counts are being artificially inflated by so-called “wash trading”.
As a result, while recent SEI price growth has been impressive, investors should remain cautious of the token.
If the blockchain fails to achieve any lasting adoption, then this means its token will essentially have no utility apart from speculation.
SEI remains at risk of going to zero.
Investors may want to check out an alternative project called Bitcoin Minetrix, a new
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