Recently, Sei Network (SEI) has garnered significant attention from the cryptocurrency community as its total value locked (TVL) reached an all-time high (ATH) of over $626 million. This remarkable growth not only reflects Sei's strong competitiveness against prominent blockchains like Ethereum and Solana but also reinforces Sei's position in the decentralized finance (DeFi) sector.
Strong progress with breakthrough TVL
Data from DeFiLlama shows that the TVL of Sei Network has reached a new ATH, marking exceptional growth. The TVL chart of Sei demonstrates strong growth since the beginning of 2024, increasing from a modest level to nearly $700 million. Notably, Sei Network's growth rate is assessed as a 'rare case', as compared to other blockchains, Sei's TVL has risen from $60.8 million to $626 million in one year, an incredible growth of up to 10-50% compared to other chains.
"With a strong influx of capital and increased on-chain activity, the SEI ecosystem is attracting considerable attention," analyst Kyledoops shared.
This breakthrough comes right after Sei Network received approval from the Japanese Financial Services Agency (JFSA), which has opened up significant opportunities for this network to enter the world's most tightly regulated crypto market. Artemis Analytics stated that this approval has helped the daily active addresses of Sei Network reach their highest level in two years, clearly indicating a strong increase in interest and community activity.
It is the combination of regulatory approval and boosted on-chain activity that has created important momentum, attracting both individual and institutional investors.
SEI needs to maintain support at $0.254
Although Sei Network has witnessed strong growth in TVL and network activity, the price of SEI token has undergone a correction. In June, the price of SEI soared by 100%, thanks to a stablecoin pilot program backed by the U.S. government and growing interest from institutions. Recently, Sei Labs proposed SIP-3 to transition the Sei network to an EVM-only model, eliminating CosmWasm and supporting native Cosmos.
However, recently the price of SEI has dropped over 78% from its peak in March 2024, currently trading at $0.254. According to ChiefraFba's analysis on X, the price level of $0.254 serves as a critical support threshold on the 8-hour chart. If this price level is not maintained, the SEI token may face the risk of a correction to $0.2.
Despite the current price of SEI undergoing significant fluctuations, with impressive growth in TVL and strong support from regulatory bodies in Japan, experts remain optimistic about SEI's future. Forecasts suggest that SEI could continue to recover and achieve sustainable growth in 2025, especially as this ecosystem is still expanding and attracting the attention of many investors.
The remarkable growth of TVL and significant legal milestones help Sei Network stand firm in the volatile cryptocurrency market. If it continues to maintain its growth momentum and stability in token value, Sei Network could emerge as one of the leading blockchains in the DeFi industry in the near future.