Sei Cryptocurrency Explained (2024)

The Sei (SEI) coin is the cryptocurrency that underpins the Sei blockchain, which provides layer 1 infrastructure for building decentralised app (dApps). The token has two primary uses:

• Enables users to pay transaction fees for on-chain activities on the Sei network.
• Allows Sei holders to participate in governance decisions affecting the network.

Sei is a proof-of-stake network, which means that network validators are also rewarded with Sei tokens for staking their tokens to support the blockchain’s consensus mechanisms.

The total supply of the Sei coin is 10 billion, with an estimated 3.05 billion currently available to be traded on the crypto market. At the time of writing, the token’s market cap was $US1.02 billion and each token was worth $US0.33. At launch in August 2023 the token was valued at $US0.064.

While the token’s launch less than a year ago was successful—with a first-day market cap of over $US400 million—the project was criticised for confusion around its airdrop giveaway of tokens to early users, which was labelled a “fiasco” by some.

The network was launched in August 2023 after the project was founded by Jeffrey Feng and Jayendra Jog two years earlier in 2021. It’s built on the Cosmos SDK framework, and venture capital backing means the project has a $US120 million Ecosystem Fund for grants to encourage developers to build on Sei.

Version 2 of the network, introducing support for Ethereum Virtual Machine (EVM) blockchains, is an important step for the project. EVM compatibility reduces effort for developers familiar with Ethereum-based tools, such as allowing developers to deploy smart contracts from EVM chains with no code changes. This paves the way for the huge number of Ethereum dApps to be deployed on Sei.

On the back of the v2 announcement in November 2023—as well as general buoyancy in the crypto markets and an uptick in new users on the Sei network—the Sei token surged in value in December 2023. Within one month, between December 18 and January 18, 2024 the token lifted over 250%. It then hit an all-time high of just over $US1 in March 2024, driven by growing network activity.

The coin has lost ground in the months following that high. It did jump 25% within one day in May 2024 when the Sei team released a more detailed three-phase roadmap of how their “parallelised EVM” v2 upgrade would occur. Phases one and two have now been initiated, with momentum building for the phase three launch of a stable beta of Sei v2.

Is Sei the Fastest Blockchain?

Sei describes itself as ‘the fastest blockchain’, but there’s no objective measure of speed that satisfies all industry pundits. In the case of Sei, their claim hinges on the mechanisms involved in finalising a transaction after it has been submitted to the chain—making it immutable. This is known as ‘time to finality’ or TTF.

Time to finality on Sei is under 400 milliseconds. By comparison, Bitcoin’s TTF is around an hour, on Ethereum it’s more like two minutes, while newer blockchains built specifically for dApp development often boast a TTF of mere seconds.

Another popular measure of speed, and overall performance, is transactions per second (TPS). This indicates the volume of on-chain transactions the blockchain processes per second.

According to data from Chainspect, in the last 30 days, Solana and Hedera were the top two chains for actual TPS, with Sei coming in sixth. However, of the chains in the top ten by TPS, Sei is clearly the fastest for TTF at 0.38 seconds with the next closest chain at 6 seconds.

How much does TTF matter? It depends a lot on what a ‘transaction’ involves. Theoretically, a fast TTF should mean fewer delays for the end-users of an DeFi app built on Sei—for instance, being able to quickly see tokens appear in your account after making a trade via a DEX.

Many popular crypto exchanges used by Australians include SEI in the list of coins available to trade, so check from your existing account. If you don’t already have a crypto trading account, here’s how to get one:

• Research exchanges and choose one with your desired features. Low fees are important but also consider whether the app supports AUD, has robust security and is easy to use.
• Create an account which involves providing your contact details and verifying your identity. Create a strong password and turn on two-factor authentication where available.
• Add money to your account. Usually exchanges will offer bank transfer and credit/debit card payment options.
• Go to ‘buy’ in the app, and use the search tool to bring up the SEI token.
• Add the dollar amount of SEI you want to buy and your order type (e.g., buy now with a market order, or use a limit order to set a price at which to buy), and then confirm your purchase.

Leaving your tokens in your crypto exchange account may not be as safe as having direct control over the private keys—you can take control by transferring your $SEI to a separate hot or cold personal crypto wallet.

SEI is an affordable altcoin at below 50c US per token, but whether its price will soar high enough to deliver a decent return on investment is impossible to predict. Crypto markets are prone to wild fluctuations based on unpredictable swings in sentiment. Only invest if you’re prepared to potentially lose all your capital.

Sei network’s EVM compatibility and increased uptake by users could positively impact its token price. DeFi Llama—a site that aggregates data on the total value locked (TVL) in DeFi platforms—ranks Sei in the top 50 chains globally for TVL. However, the project is still new and there are no guarantees it will succeed long-term.

This article is not an endorsem*nt of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.