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Sei Network has achieved a historic milestone by surpassing 600,000 daily active wallets, fueled primarily by its thriving gaming decentralized applications (DApps), despite a notable 30% decline in its token price during May 2025.
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The network welcomed 17 million new addresses in 2025, pushing its total value locked (TVL) to an all-time high above $550 million before stabilizing around $471 million, signaling robust ecosystem growth.
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According to COINOTAG sources, technical analysts highlight an inverse head-and-shoulders pattern in SEI’s weekly chart, suggesting a potential bullish reversal that could reignite investor confidence.
Sei Network’s daily active wallets hit 600,000 amid gaming DApp growth, with 17M new addresses and TVL peaking at $550M; technical signals hint at a possible SEI price rebound.
Sei Network’s Rapid Ecosystem Expansion Driven by Gaming and New Users
Sei Network’s remarkable surge in daily active wallets to over 600,000 underscores its accelerating adoption, particularly in the gaming sector. Data from Flipside reveals that since January 2025, the network has onboarded 17 million new addresses, bringing the total active addresses to 26.8 million. This influx corresponds with a daily new address creation rate exceeding 330,000 in Q2, marking a significant expansion phase for the Layer 1 blockchain.
The network’s design prioritizes high throughput and low latency, making it an ideal platform for applications requiring rapid transaction speeds, such as high-frequency trading and on-chain gaming. Notably, gaming DApps like World of Dypians, Hot Spring, and Archer Hunter have emerged as key drivers of user engagement, contributing substantially to the network’s activity metrics.
Impact of New Capital Inflows and TVL Dynamics on Sei’s Market Position
The surge in new users has translated into significant capital inflows, propelling Sei’s total value locked (TVL) to a record peak exceeding $550 million in May 2025. Although the TVL later adjusted to approximately $471 million, this level remains indicative of strong liquidity and investor interest within the ecosystem. Maintaining a high TVL is critical for Layer 1 blockchains as it reflects the health and utility of the network’s DeFi and gaming applications.
Despite these positive fundamentals, SEI’s native token experienced a price decline of over 30% in May, a trend influenced by broader altcoin market pressures and increased Bitcoin dominance. This divergence between on-chain growth and token price performance highlights the complexity of market dynamics affecting investor sentiment.
Technical Analysis Suggests Potential SEI Price Rebound Amid Market Challenges
Technical indicators provide a cautiously optimistic outlook for SEI’s price trajectory. Soroush Osivand, CEO of SSE Exchange, identified an inverse head-and-shoulders pattern on SEI’s weekly chart, a classic bullish reversal signal in technical analysis. This formation suggests that SEI may be poised to break out of its recent bearish trend, potentially attracting renewed investor interest.
However, the competitive landscape for Layer 1 blockchains remains intense, with rivals such as Solana, Aptos, and Sui vying for market share. For Sei Network to capitalize on its technical strengths and growing user base, continuous innovation and strategic partnerships will be essential to sustain momentum and enhance ecosystem value.
Challenges and Opportunities Ahead for Sei Network
While Sei Network’s user growth and TVL metrics are promising, the disconnect with SEI token price performance poses challenges for investor confidence. Market volatility and shifting capital flows in the crypto sector necessitate that Sei continues to focus on delivering tangible utility and expanding its developer ecosystem. Enhancing cross-chain interoperability and fostering high-impact gaming and DeFi projects could further solidify its position in the Layer 1 blockchain hierarchy.
Moreover, transparent communication with the community and investors will be vital to managing expectations and sustaining long-term engagement. As the network matures, balancing rapid growth with sustainable economic incentives will determine Sei’s trajectory in the evolving blockchain landscape.
Conclusion
Sei Network’s milestone of 600,000 daily active wallets and its record TVL underscore a robust and expanding ecosystem, primarily driven by gaming DApps and new user adoption. Despite a recent token price dip, technical analysis signals potential for a bullish reversal, offering hope for recovery. Moving forward, Sei’s ability to innovate and attract major projects will be crucial in maintaining its competitive edge within the crowded Layer 1 market. Investors and users alike should watch for continued ecosystem developments and market signals as Sei navigates this pivotal growth phase.
