Analysts said that the strong on-chain growth of Sei in previous months could help sustain its recent price gains.

The altcoin Sei (SEI) was the best-performing cryptocurrency among the top 100 on Tuesday (24), rising 46.5% to $0.2855 in the last 24 hours, according to data from CoinGecko. The impressive performance reinforces the momentum from the beginning of the week; SEI has risen more than 72% in the last seven days.

SEI is the native token of the Sei Network, a layer-1 blockchain based on Cosmos, launched in August 2023, specifically designed to meet the needs of decentralized exchanges (DEXs).

The state of Wyoming, which initially proposed plans to issue its own stablecoin through a state bill in February 2022, announced over the weekend a projected launch date in August for the WYST token, making it the first U.S. state to launch its own cryptocurrency.

Wyoming's Stable Token Commission, backed by the state, selected the Aptos and Sei blockchains for its stablecoin pilot program. However, the initiative still faces significant political opposition from some Republican lawmakers, who have made negative comparisons between the project and a government-issued CBDC.

Will Sei's rise continue?

Analysts said that, in addition to the impact of Wyoming's demonstration of faith, SEI has shown impressive gains in its underlying ecosystem in recent weeks.

Illia Otychenko, lead analyst at the CEX.IO exchange, told Decrypt that 'in the last two months, SEI has also shown strong on-chain growth, with daily active addresses increasing by 180% and daily transactions increasing by 20%.'

He added that 'this momentum may help SEI sustain some of its recent price gains.'

The total value locked (TVL) of the project is now $542.17 million, according to data from DeFiLlama, an increase of about 200% since early March of this year.

Rajiv Sawhney, Head of International Portfolio Management at Wave Digital Assets International, highlighted that the asset manager Canary Capital filed for an SEI ETF in May, which would greatly facilitate institutional investor exposure. Sawhney believes that investors may be speculating on the altcoin based on the possibility of a potential SEC approval.