Altcoin Sei soars 47% after being considered for Stablecoin by Wyoming

Altcoin Sei (SEI) has become the best-performing cryptocurrency among the top 100 assets today, rising 46.5% to $0.2855 in the past 24 hours, according to data from CoinGecko. This impressive increase follows a rally from the beginning of the week, helping SEI gain over 72% in the past seven days.

Reason for price increase: Selected by Wyoming as a Stablecoin candidate

The price increase of this altcoin comes after the Wyoming Stable Token Committee selected $SEI as the candidate blockchain for the state's upcoming dollar-pegged stablecoin, WYST, earlier this week. Sei will have to compete with rival blockchains such as Aptos, Arbitrum, $AAVE , Base, Ethereum, $POL , Optimism, Stellar, Solana, and Sui.

Wyoming, the first state to propose a plan to issue its own stablecoin through legislation in February 2022, announced its goal to launch the token in August, making Wyoming the first state in the U.S. to launch its own stablecoin. However, this initiative still faces significant political opposition from some Republican lawmakers, who have made negative comparisons between the project and #CBDC (central bank digital currency) issued by the government.

Will Sei's rally continue?

Analysts shared with #Decrypt that aside from the impact of Wyoming's trust, SEI has shown impressive growth in its underlying ecosystem in recent weeks.

Illia Otychenko, Head of Analysis at CEX.IO exchange, stated: “In the past two months, SEI has also shown strong on-chain growth, with the number of daily active addresses increasing by 180% and the number of daily transactions rising by 20%.” He added: “This momentum could help SEI sustain some of its recent price gains.”

The total value locked (TVL) of the project currently stands at $542.17 million according to DeFiLlama, an increase of about 200% since the beginning of March this year. Rajiv Sawhney, Head of International Portfolio Management at Wave Digital Assets International, emphasized that asset management company Canary Capital applied for an SEI ETF in May, which will make it easier for institutional investors to access. Sawhney believes that investors may be speculating on this altcoin based on the potential for SEC approval.