Sei Blockchain’s token was one of the best performers on Tuesday as it surged to a high of $0.3885, its highest point since August 16th. The token has risen by more than 273% from its lowest point this year.
Open interest hits record
As the Sei token price jumped, so did open interest in the futures market. Data compiled by CoinGlass shows that the open interest jumped to a record high of $123 million. Most of this open interest was in Binance, the biggest exchange in the world, which had over $48 million.
It was followed by Bybit and Bitget, which had over $48 million and $5.9 million, respectively. Open interest refers to the number of outstanding derivatives for an asset in the futures market. A higher figure is usually a positive sign for an asset.
It is unclear why the SEI token is rising. A likely reason is a recent announcement by the developers about the upcoming Sei V2, which is intended to make the network faster and more cost-efficient.
In a recent statement, the developers wrote that the new version will make it the first parallelized EVM blockchain. It will deploy a backward-compatible Ethereum execution environment. As a result, all Ethereum developers will be able to deploy on Sei and access its quicker ecosystem.
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Sei hopes that the new transition will boost its ecosystem, which is not doing well. Data compiled by DeFi Llama shows that the network has a Total Value Locked (TVL) of more than $3.5 million.
It has only six DeFi networks, including Astroport, Levana Perps, Fuzio, White Whale Dex, and SeaSwap. Astroport, the biggest dApp in its ecosystem has just $3.3 million in total assets.
Sei is also aiming to grow its ecosystem in other industries like gaming, NFTs, stablecoins, and infrastructure.
Sei price forecast
SEI chart by TradingView
The 4H chart shows that the SEI token price bounced back on Tuesday, becoming one of the best-performing tokens. As it jumped, the token crossed the key resistance point at $0.3171, its highest point on December 5th. The token has moved above the 50-period Exponential Moving Average (EMA).
Further, the MACD and the Relative Strength Index (RSI) have continued rising. Therefore, I suspect that the coin will pull back in the next few hours or days as sellers target the key support level at $0.3171, the highest point last week.