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<p>SEI token has seen tremendous growth recently, with the price surging over 80% in 7 days and 198% in 4 weeks, making a total return of around 1000% since launch, according to<a href="https://twitter.com/Donnie100x/status/1742914268704784760" target="_blank" rel="noopener noreferrer nofollow"> posts by @Donnie100x</a>. However, Donnie argues that there are reasons to be cautious about the sustainability of these gains.</p>
<h2 class="wp-block-heading" id="what-is-driving-the-sei-price-surge">What is Driving the SEI Price Surge?</h2>
<p>Donnie outlines several factors behind SEI’s meteoric rise:</p>
<ul>
 <li>SEI is a high-speed Layer 1 blockchain tailored for trading, with unmatched throughput and fast settlement times thanks to its innovative Turbo Twin consensus model. This makes it appealing for decentralized exchanges and trading applications.</li>
 <li>Upcoming V2 integration with Ethereum will allow Ethereum dApps to deploy on SEI, benefiting from its advanced consensus and parallelization capabilities. This could attract significant developer interest.</li>
 <li>SEI’s Cosmos SDK foundation makes it compatible with the Cosmos ecosystem which has seen immense speculation around airdrops recently.</li>
</ul>
<h2 class="wp-block-heading" id="causes-for-concern-about-long-term-price-sustainability">Causes for Concern About Long-Term Price Sustainability</h2>
<p>However, Donnie sees causes for concern that the massive price gains may not be justified or sustainable long-term:</p>
<ul>
 <li>Despite the coin’s nearly $2 billion market cap, SEI’s ecosystem and adoption remain limited compared to other Layer 1s. As Donnie points out, total value locked on SEI is only around $10 million, a tiny fraction of its market cap.</li>
 <li>Speculation seems to be getting ahead of actual adoption. The 100%+ increase in TVL today appears to be traders piling in to chase gains.</li>
</ul>
<p>As Donnie quotes: <em>“It seems like the adoption is getting priced in before that is really happening.”</em></p>
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<h2 class="wp-block-heading" id="what-is-the-outlook-for-sei-price">What is the Outlook for SEI Price?</h2>
<p>In Donnie’s view, more short-term manipulation could fuel another 2x from current prices. However, he warns about FOMO buying into this pump with Bitcoin approaching major resistance levels.</p>
<p>Instead, he suggests looking into SEI’s ecosystem for potential moonshot gains on speculative <a class="wpil_keyword_link" href="https://captainaltcoin.com/meme-coins/" title="memecoins" data-wpil-keyword-link="linked" target="_blank" rel="noopener noreferrer nofollow">memecoins</a> and NFTs while the mania lasts. For long-term holds, he advises solid projects launching on SEI over the native token itself.</p>
<p>In an extremely bullish scenario, SEI could conceivably reach Solana’s market cap, representing a further 20x gain. However, Donnie seems skeptical of this happening without significantly more adoption and development activity on the chain.</p>
<p>The takeaway seems to be enjoying SEI’s networks effects but being wary of sky-high valuations unsupported by fundamentals. Traders should be cautious about overextending long positions at current prices.</p>
<p>You may also be interested in:</p>
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 <li><a href="https://captainaltcoin.com/why-is-mav-price-up-today/" target="_blank" rel="noopener noreferrer nofollow">Why is MAV Price Up Today?</a></li>
 <li><a href="https://captainaltcoin.com/cardano-adas-exciting-future-investments-surge-in-polkadot-dot-and-borroe-finance-roe/" target="_blank" rel="noopener noreferrer nofollow">Cardano (ADA)’s Exciting Future; Investments Surge in Polkadot (DOT) and&nbsp; Borroe Finance ($ROE)</a></li>
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<p>The post <a href="https://captainaltcoin.com/expert-explains-why-you-shouldnt-be-too-bullish-on-sei-price-despite-a-200-increase-in-4-weeks/" rel="noopener noreferrer nofollow">Expert Explains Why You Shouldn’t Be Too Bullish on SEI Price Despite a 200% Increase in 4 Weeks</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

Expert Explains Why You Shouldn’t Be Too Bullish on SEI Price Despite a 200% Increase in 4 Weeks

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