The cryptocurrency world hasn’t seen a really impressive project launch this year. Remember the booming market in 2021, when every new project seemed incredibly successful? Well, this year hasn’t had as many exciting launches. But things changed with the arrival of Sei. It’s an open-source layer 1 blockchain specialized for the exchange of digital assets. Its launch is one of the biggest and most important ones in 2023 so far.
In this blog, we’ll delve into the Sei blockchain and explore the reasons behind its token valuation of $1.8 billion following the beta launch.
Everything to Know About Sei
Firstly, it should be noted that Sei claims to be the fastest layer-1 blockchain in the space as compared to the other 31 layer-1 protocols. Now that’s quite a landmark to be self-positioned at. Per their website, the transactional throughput is around 20,000 ops, and the transactional finality time of 500ms. The blockchain is based on the Proof-of-Stake consensus mechanism with a parallelized processing style, similar to Solana.
What adds to its credibility is the backing of world-class operators, investors, and institutions. Some of the most prominent names include Multicoin Capital, Coinbase Ventures, Jump Capital, Delphi Digital, GSR, and Distributed Global. Having such a great set of backers can also be one of the attributes of the current token valuation.
The most significant factor for layer-1 blockchain is the size and diversification of decentralized applications hosted on it. Within this factor, Ethereum is the torch bearer as it hosts the most prominent DeFi protocols in the industry. Regarding Sei, the current list of protocols building on it is quite less as it was recently launched. Still, DEXs like SushiSwap have showcased an interest in deploying their infrastructure on it. This is probably because Sei is built on the Cosmos software development kit, designed to scale decentralized exchanges’ trading capabilities (DEXs) with its matching engine and order front-run prevention tools.
Another factor for the token valuation can be the realized numbers in terms of its traction post the launch of the beta phase of its mainnet. The blockchain recorded over 400 million transactions, creating 7.5 million test wallets.
Sei Token Launch
On August 15, significant exchanges like Binance, Bybit, and Bitget added the native Sei (SEI) token to their listings. When trading began on Binance, the token started at $0.064 per unit and quickly soared to a peak of $0.48. On KuCoin and Gate exchanges, the value of Sei saw a rapid increase, reaching over $0.8 and $0.4, respectively. But later on, it settled around 2 cents. Traders need to be cautious because there’s a chance that the price might experience a sudden drop back to its initial value or possibly even go down further. As of now, it’s trading at $0.26. The total number of SEI tokens available is 10 billion, with an initial supply of 1.8 billion SEI tokens.
Closing Thoughts
In 2023, the cryptocurrency landscape lacked significant project launches until Sei emerged as an open-source layer 1 blockchain specializing in digital asset exchange, marking a standout milestone. Sei is the fastest layer-1 blockchain among 31 counterparts, with a throughput of 20,000 operations and a 500ms finality time, supported by influential backers like Multicoin Capital and Coinbase Ventures.
While Ethereum dominates decentralized applications, Sei’s Cosmos-based infrastructure has caught the attention of DEXs like SushiSwap. The token’s valuation is fueled by its traction, recording 400 million transactions and 7.5 million test wallets. Its debut on exchanges, including Binance, led to initial surges, but traders are advised to be cautious due to potential price fluctuations.
