The inauguration day for the Sei Network’s native token, SEI, saw the token being jointly listed by major exchanges like Binance, Bybit, and Bitget and its value rocketing to a fully diluted valuation of $1.8 billion. Such a steep leap might be attributed to their mainnet’s beta phase launch on the same day. Interestingly, the alpha phase of the blockchain had witnessed more than 400 million transactions, thereby hinting at a strong potential of this token in the near future.
Amidst this market enthusiasm, one might question the sustainability of the high valuation of Sei. The Sei blockchain purportedly enabled the processing of up to 20,000 transactions within 0.5 seconds. However, the real-world efficiency of the network is yet to be tested. As Jeff Feng, co-founder of Sei Labs, pointed at the existing issues of ‘unscalable, congested, and slow’ Web 3 infrastructure, his statement seemingly bestows trust to potential investors in the new technology.
In the coming months, the function and value of the SEI tokens will be crucial to watch. With 30 Sei applications slated to launch by the end of the year, including the decentralized exchange Sushiswap’s plan to roll out a perpetual futures exchange on the Sei protocol, the future of the SEI tokens appear promising. There is also the added incentive for developers, courtesy of a $120 million ecosystem development fund, sparked by exchange MEXC Global’s contribution.
However, while the fund raises optimism, the past experiences of volatile cryptocurrencies caution us of possible risks. That said, drawing a parallel between Sei and other tokens could be unjustified given Sei’s emergence in a matured market. Worth noting, the number of SEI tokens in circulation and its utility on different platforms will be the real game-changers for its valuation.
The role of cryptocurrencies like SEI, signify an important phase in digitization. The technology that consolidates this change, such as blockchain, form the basis for the significant values assigned to these digital assets. How effectively this technology can provide solutions to the issues of the current digital world, like scalability and transaction speed, will ultimately form the bedrock of these digital economies. Thus, while the Sei network seems to exhibit potential, the bustling market waits eagerly to observe its performance in the dynamic digital paradigm.
Source: Cointelegraph
