$SEI Dips 5% But DeFi Growth Soars: Is This Layer-1 Gem Being Overlooked?

Sei ($SEI), a general-purpose Layer-1 blockchain that merges the best features of Ethereum and Solana, saw its price dip by 5% over the past 24 hours. Despite this short-term drop, $SEI has had a strong run recently, posting a 30% gain over the last seven days and extending its monthly growth to 42%.

At press time, $SEI is trading at $0.2559. For context, the token peaked above $0.70 in December 2024, before entering a prolonged downtrend that brought it to a low of $0.1445 in April 2025.

Since its launch in August 2023, Sei has consistently promoted its edge in transaction speed and scalability.

These technological efficiencies, paired with Sei’s chain-level optimizations, have helped attract a growing number of decentralized exchanges and trading protocols to the platform.

A May 8 report from Messari noted that Sei’s total value locked (TVL) surged 73.7% in Q1 2025, rising from $209.1 million in the previous quarter to $363.1 million. Stablecoin market cap on the network also hit an all-time high of $178 million.

Sei saw a 78% increase in daily active addresses and a 59% rise in transactions in Q1.

Sustained growth across apps, users, and network activity points to real momentum behind the ecosystem. pic.twitter.com/G5q2wnZb4A

These figures have continued to climb in Q2, with TVL now surpassing $500 million and the stablecoin market cap reaching $232.5 million.

However, the discrepancy between Sei’s price and on-chain activity has led many analysts to believe that $SEI remains undervalued.

While ranked only as the 67th-largest crypto asset by market cap ($1.3 billion), Sei outpaces other higher-ranked chains like Cardano, Cronos, and Optimism in network usage and assets locked.

For instance, Cronos is currently ranked 42nd with a $2.6 billion market cap, Optimism ranks 65th with $1.32 billion, and Cardano sits in the top 10 with a valuation exceeding $28 billion, despite trailing Sei in DeFi activity metrics.

GE #CryptoTrading Fam
$SEI weekly looks interesting & ready for some violent moves [imo]… it will likely try to fake down towards 2$ where it will provide a chance or two for great entry. Looks like clean 300-400% after it breaks out in the following weeks.
All of this is… https://t.co/vuINBQJyEc pic.twitter.com/EzlGfzhbsf

Many believe that once capital and investor focus shift toward Sei, its price could reclaim its previous high of $1.14 from March 2024, or even move beyond it.

Institutional interest in $SEI is also rising. In April, World Liberty Financial (WLFI), a Trump-affiliated crypto initiative, added 4.89 million $SEI tokens, worth approximately $775,000, to its portfolio, including Bitcoin and Ethereum.

Additionally, on April 30, Canary Capital filed a proposal with the U.S. SEC for the first spot Sei ETF, which would include a staking feature. According to the S-1 filing, BitGo and Coinbase would handle the fund’s custody.

These developments suggest that $SEI is positioned for investor interest and a potential price surge once retail and institutional liquidity returns to the market.

From a technical standpoint, the $SEI/$USDT chart shows a continued bullish trend supported by an ascending trendline that began in April.

The price has moved above its 20-day, 50-day, and 100-day exponential moving averages (EMAs), which are currently clustered between $0.1923 and $0.2214.

A key resistance lies at $0.30. A confirmed breakout above this level could lead to a 31.4% rally toward the next target of $0.3367, which coincides with the 200-day EMA and a previous resistance area from late 2024.

To sustain this momentum, $SEI must maintain support above the $0.24–$0.25 range. A break below could trigger a pullback to key support levels at $0.22, $0.2097, and $0.2000.

On the other hand, a move above $0.30 could validate the next leg of $SEI’s bullish breakout, with further upside potential in the weeks ahead.

The post $SEI Dips 5% But DeFi Growth Soars: Is This Layer-1 Gem Being Overlooked? appeared first on Cryptonews.