YEREVAN (CoinChapter.com) — The Sei network is a general-purpose Layer-1 blockchain designed for efficient digital asset transactions. Built on the Cosmos SDK and Tendermint Core, it integrates Cosmos’ Inter-Blockchain Communication (IBC) protocol, ensuring smooth cross-chain interactions. Its architecture prioritizes low latency and high transaction throughput.

Sei’s V2 upgrade in May 2024 introduced Ethereum Virtual Machine (EVM) compatibility, optimized parallel transaction processing, and the SeiDB storage interface, which enhanced scalability. These improvements created opportunities for developers to build modular Layer-2 networks.

Sei V2 Key Enhancements Explained. Source: @phillip_xyz

Sei’s native token, SEI, launched in August 2023, serves multiple purposes, including facilitating transactions, staking rewards, and governance.

Ecosystem Growth Amid Election-Driven Interest

Interest in SEI crypto token and the Sei network coincided with increased market speculation following the U.S. presidential election, where Donald Trump’s campaign drove broader crypto discussions. This period saw heightened blockchain activity and new user engagement across Layer-1 networks, including Sei.

SEI Token Performance and Financial Metrics

The SEI token price increased by 35.2% quarter-on-quarter (QoQ) to $0.46 in Q3 2024. In September alone, the price surged 62.6%, boosting the market cap to $1.63 billion, up 57.1%. The increase in circulating supply by 15.6% brought the total to 3.52 billion SEI. Proposal 83, which raised gas fees to control spam transactions, contributed to the rise in network activity and revenue.

SEI/USDT Price Chart. Source: TradingView

While SEI’s revenue in tokens rose 31.1% QoQ, its USD-based revenue decreased by 16.5%, reflecting broader market dynamics.

Liquid Staking and Sei DeFi Expansion

Liquid staking grew rapidly, with 162.3 million SEI staked by the end of Q3, marking a 665.9% QoQ increase. Silo led the liquid staking market with a 98.6% share. Despite an 8% drop in staked tokens, the USD value of staked SEI rose by 25%, supported by the token’s price growth.

Liquid Staking TVL Dominated by Silo. Source: DefiLlama, Messari

Sei’s DeFi ecosystem expanded significantly, with total value locked (TVL) in USD increasing by 254.4% to $215.8 million. Major protocols like Yei Finance and DragonSwap attracted significant activity, alongside contributions from newer entrants like Oku and Jellyverse.

Community and Development Initiatives

Notably, The Sei Foundation supported ecosystem development through funding programs like the $10 million Creator Fund, which facilitated multiple matched funding rounds, raising over $223,000 for projects. Additionally, the $50 million Japan Ecosystem Fund was launched to support blockchain startups in gaming and social sectors.

Moreover, daily active addresses surged 540.8% QoQ to 32,710, while daily transactions reached 4.2 million. In addition, Sei’s consistent activity was supported by its native price oracle, requiring validator participation in every block.

Above all, with its growing ecosystem, staking solutions, and funding initiatives, Sei continues to solidify its position as a Layer-1 blockchain.

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