SEI, the Native Coin of the Layer-1 Blockchain Sei Network, Extended Its 30-Day Rally to 38% Today

SEI, the native coin of the layer-1 blockchain Sei Network, extended its 30-day rally to 38% today, climbing to $0.21. The surge comes amid a new community proposal to end support for the Cosmos architecture currently underpinning the network.

Key Takeaways:

* SEI, the native coin of the layer-1 blockchain Sei Network, extended its 30-day rally today. The coin's price rose by 6%, reaching $0.21.

* The surge in SEI comes amid a new community proposal to drop support for the Cosmos architecture currently underpinning the network.

* Cosmos' native cryptocurrency, ATOM, remained in the green despite the news.

* In this analysis, CCN takes a look at why the Sei community is pushing for this structural change, the alternative blockchain architecture it plans to adopt, and what it could mean for SEI's price trajectory going forward.

Sei Network, known for its blazing-fast throughput and low transaction fees, is preparing for a significant shift in architecture. The move, which is still pending approval from the network's community, has sparked discussion among cryptocurrency enthusiasts.

The shift is proposed in response to a decline in Cosmos network activity, according to Sei.

The layer-1 blockchain project plans to transition fully to an Ethereum Virtual Machine (EVM)-compatible ecosystem. Adopting full EVM compatibility would reduce infrastructure demands and enhance the user experience, the project stated.

Sei's decision to build a fast, developer-friendly blockchain could be hindered by Cosmos, which Jayendra Jog, co-founder of Sei Labs, believes might be slowing down Sei's progress toward this goal.

"Nearly all of Sei's current activity is EVM activity, and that trend is on track to continue for the future. As a result, we propose SIP-3, which represents a strategic architectural decision: concentrating fully on Sei's parallelized EVM," Jog posted about the matter on X.

Sei Network: A Deep Dive

Sei is a new layer-1 blockchain that aims to provide a fast, efficient, and developer-friendly platform for decentralized applications (dapps). The network is designed to handle high volumes of transactions per second (TPS) without compromising on security.

The project's native token, SEI, has been gaining attention for its impressive price rally in recent times. In the 30-day chart, SEI's price has rebounded by more than 30% from its lows.

On the same chart, the Chaikin Money Flow (CMF) has remained above the zero signal line, indicating that accumulation has outpaced selling pressure.

If this momentum remains the same, then SEI's market value might test the upper-level resistance on the chart. Once breached, the altcoin could reach $0.36 at the 0.618 Fibonacci level in the short term.

However, if the CMF drops below the zero signal line, this prediction might not materialize. In that scenario, SEI could decline below $0.15, possibly hitting a new yearly low.