SEI opened the week with 13% gains for the 7-day window. It was up over 100% for the trailing 30 days. But some altcoin bulls think it’s just getting started in July.
Though it is an Ethereum competitor launched in Aug. 2023, SEI is compatible with the ETH ecosystem using the EVM. Moreover, it is custom built with special integrations to support decentralized exchange (DEX) formats.
Built on the Cosmos Tendermint platform to secure records using a Delegated Proof of Stake method, SEI is a super fast system for blockchain settlement.
“I’ve been saying this for weeks $SEI really giving those early $SOL vibes. Can’t ignore that momentum,” wrote one crypto enthusiast on the X app Monday.
The Sei economy has a limited supply hard-capped at 10 billion. But new tokens continue to enter the market with the current circulating supply just south of 6 billion.
So token scarcity is a support factor in its price growth, similar to Bitcoin, Bitcoin Cash, and Litecoin.
Over the past 30 days, the cryptocurrency is up by more than 111%, making it one of the best performers from the top 100 coins by means of total market capitalization.
Meanwhile, Ethereum prices posted 20% returns over the past seven days and around 42% for the 30-day window, with a surge in leveraged trading.
But here are 3 bullish signs that SEI could outperform ETH in Q3.
Sei’s technical setup on the price chart is promising in July.
The graph appears to be forming a 5-month cup and handle pattern with the left side starting on Jan. 30 and completing on Jun. 24. Cup and handles often signal a rally.
Last week, the handle formed and launched into a bullish test of the Jan. 30 price level around $0.34.
This pattern is a little odd because its outer bounds are marked only by brief tests of support by market bears, instead of a bold trace of the cup shape.
But there are enough dots to connect from SEI price lows on 2/6, 3/11, 4/8, and 6/17 for the pattern to be readily visible on the chart.
Meanwhile, daily trading volume declined toward the later side of the graph until the right side of the cup began to form as it usually goes with these market movements.
Markets are licking their chops for SEI tokens in July. The massive surge in 24-hour trade volume to nearly $1 billion on 6/23 as the cup began to form signals major interest in this coin.
Sei is still relatively new with an Aug. 2023 rollout and it has the familiar markers of new projects poised for over-indexed gains on the coattails of Bitcoin’s price rallies.
The altcoin erupted from $0.1776 per token to over $1.04 for a 511% ROI in under 7 months from Aug. 2023 to Mar. 2024.
Since then the price has adjusted downward in a bullish long-term falling wedge pattern altcoin markets have seen several times before from big winners among new currencies.
The trend lines for this falling wedge converge around Jun. 15 as the 5-month cup and handle pattern began to round out into a stout rally for SEI.
One major impetus for the delta on Sei ROIs over the recent spans is its integration of the Circle stablecoin USDC on its platform.
Sei is a Layer-1 blockchain currency and an Ethereum rival for smart contract development and decentralized finance or DeFi. The addition of a $60 billion market cap stablecoin excited SEI bulls.
Because crypto users, developers, and traders use stablecoins to trade cryptos against a currency with a stable US dollar peg, support for USDC on the platform opens up massive liquidity channels for SEI markets.
It also makes Sei easier to work with for institutional investors, with traditional finance rapidly adopting the blockchain solution for stable currency in 2025.
After announcing the USDC integration last week, SEI’s price surged 22% in 24 hours.
Sei bulls are pushing the narrative on social media that it’s the next DeFi project to deliver the eye-popping kind of gains that Solana did in 2024.
The fundamentals of business on its network are shaping up to back that proposition.
The first week in July, the total value locked (TVL) for SEI coins staked to secure the currency’s blockchain and stabilize its market hit a new all time high.
It clocked in above $625 million in TVL, according to data from Defi Llama. That prompted popular Crypto Banter host Kyledoops to write in a post on X, “More capital flowing in, more on-chain activity picking up – the SEI ecosystem’s clearly pulling in fresh attention.”
Meanwhile, Yei Finance, an automated money markets platform built on Sei eclipsed the $400 million mark in total value locked on Jul. 11. Between Sei and Yei, that’s now over a billion worth of currency locked into the Sei ecosystem in July.
