SEI network activity explodes: Is the price surging?

The Sei network (SEI) is witnessing an impressive surge in activity, with daily transaction volumes exceeding 1.5 million and over 616,000 active wallets – numbers that clearly reflect the increasing vibrancy of this ecosystem. In terms of price, SEI is also keeping up with the trend, surging 12.72% to trade around the $0.2097 mark at the time of writing.

However, this strong upward momentum also raises a big question: Is this a sign of genuine acceptance from the market, or just a temporarily "pumped" growth wave?

In this context, analyzing data and assessing the core factors driving the growth of SEI – as Bitcoin Magazine has done – becomes extremely necessary to determine whether this is a sustainable opportunity or just a temporary craze.

Real Acceptance or Hype Wave?

The Social Dominance index ( of SEI soared to 0.26% on June 20 — the highest level in over two months.

![sui-tang])https://img-cdn.gateio.im/webp-social/moments-17994c0949b86b5e4b2d386d7ada6c91.webp(Source: SantimentAt the same time, the weighted Sentiment index also surged to 3.66, indicating a noticeable increase in excitement within the community.

Notably, market sentiment only starts to rise after on-chain data shows signs of improvement — not the other way around. This sequence usually reflects a more sustainable bullish trend, as optimism does not stem from hype, but from actual usage activities.

However, if the positive sentiment continues to be pushed too high without support from practical applications, that could be a warning signal for a short-term peak. Therefore, maintaining a stable and alert market sentiment is a key factor to ensure growth momentum in the upcoming period.

![sui-tang])https://img-cdn.gateio.im/webp-social/moments-4b9abf72c50eea0a135fd2885ddf0a99.webp(Source: Santiment## Leverage is increasing – solid confidence or a dangerous sign?

The SEI derivatives market is shining brightly, attracting strong attention as the open interest index )OI( – representing the total number of open contracts – surged by 42.73%, while the trading volume also skyrocketed by 176.80%, reaching 502 million USD. These impressive figures clearly reflect the optimistic sentiment of traders, as they actively increase leveraged positions with the expectation that the price uptrend will continue.

However, leverage is always a double-edged sword. If the price shows signs of stagnation while open contracts remain at a high level, the risk of asset liquidation will increase significantly – potentially triggering unpredictable volatility.

Currently, the derivatives market is showing a clear confidence from investors, but at the same time, it is also emitting warning signals about the level of risk when leverage is used excessively during the accumulation phase.

The largest spot trading volume in weeks!

SEI has just recorded net inflows into the spot market )Net Spot Inflows( reaching 2.19 million USD at the time of writing – marking the strongest increase in recent weeks. This positive development comes after a period of unpredictable capital flows, indicating that sidelined capital is showing signs of returning to the market.

Combined with the increasing trading volume and the activity on social media platforms, the new wave of capital flow could lay the foundation for a sustainable price increase.

![sui-tang])https://img-cdn.gateio.im/webp-social/moments-642d11142bdd08cb226a5784a21ac702.webp(Source: CoinGlassHowever, for this trend to be firmly established, the prerequisite is that positive cash flows must continue to be maintained in the upcoming period. Therefore, investors need to closely monitor the capital flow developments to verify the reliability of the current breakout efforts.

Can SEI break through this important resistance level?

After a strong rebound from the support area of $0.1659, SEI is currently approaching the important resistance level around $0.2135 at the time of writing. If it can surpass the level of $0.2766, the long-term downtrend will officially be broken, opening up room for a potential recovery up to the region of $0.35.

However, it is important to note that this resistance area has repeatedly halted upward momentum in the past. Without a significant increase in trading volume and stable cash flow, SEI may face obstacles in maintaining upward momentum.

![])https://img-cdn.gateio.im/webp-social/moments-801a2d4438eac4f771ca49ee81f4c3dc.webp(Source: TradingView## The bullish structure is still being maintained.

Overall, the recent developments of SEI reflect a solid consensus among user activity, market sentiment, capital flows, and leveraged trading positions.

If SEI can break through the resistance area with strong support from trading volume and inflow of funds, the short-term uptrend is likely to be strengthened and continue to expand. Conversely, if it cannot conquer the level of $0.2766, the price may enter a period of accumulation again.

SN_Nour