YEREVAN (CoinChapter.com) — Sei Network, a DeFi protocol based on Cosmos blockchain, saw its same-name token soar nearly 70% since Dec 18. SEI/USD reached an all-time high of $0.38 in the Asian-Pacific session on Dec 20. Was SEI liquid staking behind the uptrend? Let’s see.
SEI Trading booming
According to on-chain tracker Messari, Sei Network’s trading volumes peaked on Dec 19 at $316 million, a record high for the token. As the Dec 20 results are not fully in yet, the dynamic for the coming sessions is not yet clear.
SEI investors could partially take profit, correcting the price in the meantime. However, if the trading volumes remain high, pared with the increasing price they could indicate a bullish continuation.
According to crypto tracker CoinMarketCap, Binance is responsible for nearly 25% of the SEI/USDT trading, with a volume of $203 million on Dec 20.
SEI Liquid Staking Behind the Hype
Meanwhile, SEI’s liquid staking announcement might have stirred investor interest in the altcoin. On Dec 18, Kryptonite tweeted the news, urging traders to stay tuned as “there’s more coming.”
Did you know? Liquid staking in cryptocurrency is a process where you can stake your crypto assets to participate in network operations and earn rewards. But unlike traditional staking, you receive a liquid token in return. This liquid token represents your staked assets and can be used or traded while you’re still earning staking rewards. Essentially, it provides the flexibility to use your staked assets in other DeFi activities without losing the ability to earn rewards from staking.
Kryptonite Finance is the first major SEI liquid staking platform. It provides an integrated money market that allows users to earn compounded interest on SEI while having the option to access leverage. Kryptonite positions itself as a key player in the SEI ecosystem, offering services like staking, leveraging, lending, and trading.
Notably, Silo is the second liquid staking protocol on Sei but has yet to release extensive details about its offerings.
