SEI plunges from ATH as network puts Ethereum first in new upgrade

How Sei Network’s V2 Announcement Caused Havoc for SEI Token’s Price

Sei Network recently made headlines when its price dropped from $0.29 to $0.23 within 24 hours, following the announcement of its v2 plans. The decision to disclose its v2 plans caused chaos in the project’s price action.

Price Surge Followed by a Steep Fall

Prior to Sei Network’s announcement, the value of SEI surged by double-digits and tapped a new All-Time High (ATH) of $0.29. However, moments after the revelation, the price fell by 16.86% while trading at $0.23 at press time. This move looked like a typical “buy the rumor, sell the news event.”

The EVM is the “SenSEI”

Sei Network announced its plan to become the first parallelized ethereum Virtual Machine (EVM) blockchain, which is the computational engine for ethereum that enables smart contract functionality. The EVM development does not mean that Sie is migrating; rather, it would be an additional function for the project when it is implemented.

TVL drops after the disclosure

The Total Value Locked (TVL) also took a hit, down to $3.26 million. This drawdown was because protocols like SeaSwap and Fuzio experienced a decrease in the liquidity locked in them.

The Road Ahead

Should the proposal go live, it could bring about an influx of users on the Sei blockchain, potentially affecting the SEI price and TVL. However, there is a chance that the mood sentiment toward the project may change, given the higher throughput and cheaper transaction costs the network may soon start to offer.

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