The native token of blockchain network Sei, SEI, saw a meteoric launch day price spike of over 2000% across major exchanges on Tuesday.
SEI opened at $0.064 before surging to an intraday high of $0.48 as trading volumes exceeded $120 million. The token has since stabilized around $0.18.
The dramatic price action coincided with Sei’s mainnet beta launch as investors rushed to acquire its native asset. However, analysts caution the pump could reverse into an equally steep drop.
Trading of SEI kicked off on platforms including Binance, Bybit and Bitget on August 15, the same day Sei’s mainnet entered beta testing.
The token exploded out of the gate, quickly racking up 2000%+ returns in a matter of hours. Trading volumes topped $120 million as investors piled in amid the buying frenzy.
“Current Web 3 infrastructure is unscalable, congested, and still too slow,” said Sei co-founder Jeff Feng, touting the network’s capabilities.
SEI has since pulled back significantly from its peak above $0.40 across exchanges. But at around $0.18, it remains up over 150% from its $0.06 opening price at the time of writing.
Rapid launch day spikes are common for new crypto assets as speculation reaches a fever pitch.
However, gravity often strikes back just as fast. With minimal price history, volatile assets can see massive drops after failing to sustain vertical rallies.
Despite SEI’s impressive early trading, analysts advise investors to exercise caution given the likelihood of a correction from its lofty highs.
Much of the initial demand was driven by hype rather than fundamentals. Once the excitement fades, the token could face selling pressure and slide back toward its initial range.
Nonetheless, Sei’s successful beta launch and exchange debut represent a milestone for the Cosmos-based blockchain network as it rolls out its technology.