• SEI token recently announced it was increasing the number of eligible wallets for $SEI Airdrop from 500K to 1.5M wallets.
• At press time, SEI was trading at $0.1625 down 12.02% from where it was trading yesterday the same time and its trading volume has also dropped by 42%.
• The price decline is believed to have been caused by the influx of users from different blockchains participating in the airdrop that resulted in a cascade of sell-offs among eligible users.
What is SEI?
SEI token (Synthetic Ethereum Index) is a digital asset created on Ethereum blockchain with an aim to track DeFi trends and provide investors with exposure to the DeFi sector. It offers yield farming, staking, liquidity mining and other activities related to decentralized finance (DeFi).
SEI’s Recent Momentum
Sei token recently witnessed a splendid performance over the past seven days and even hit an all-time high of $0.2736 on August 16th. This surge was followed by Sei Foundation announcing that they would increase the number of eligible wallets for their cross-bridge airdrop from 500K to 1.5M across multiple blockchains including but not limited to Ethereum , BNB Chain, and Polygon .
Why Did SEI Price Take A Dive?
The wallet surge is believed to have incorporated users from these various blockchains pouring into Sei blockchain mainnet beta which went live on August 15th promising to hold a token airdrop afterwards; this subsequently led to 300 million tokens being allocated for said airdrop out of its total supply of 10 billion coins which is roughly 3%. This sudden influx caused eligible users to rush into cash or other cryptocurrencies resulting in a cascade of sell-offs among them thus causing SEI’s price plummeting down from its record high of $0.2736 to $0.1496 in just 24 hours!
Implications Of The Price Drop
The implications of such drops are usually felt across all cryptocurrency markets as investors become more cautious about investing in any new projects due fear that such prices could plunge at anytime without warning; this results in them taking profits or avoiding any new investments altogether until they feel more confident about market stability again.
Overall, SEIs recent dip can be attributed mainly due to the overwhelming demand for its associated token airdrops which resulted in large sums being sold off thereby causing prices plunging downwards temporarily