• SEI token recently went through a significant price drop after its all-time high of $0.2736 on August 16.
• The token’s trading volume has also dropped by 42% in the last 24 hours.
• This price decline coincided with a decision by Sei Foundation to open airdrop claims to 1 million more wallets than previously anticipated.
SEI Token Price Drop
At press time, SEI was trading at $0.1625 down 12.02% from where it was trading at yesterday the same time. The token’s trading volume has also dropped by 42% in the last 24 hours. SEI recently announced it was increasing the number of eligible wallets for $SEI Airdrop from 500K to 1.5M wallets.
All-Time High Price
SEI token price dropped to $0.1496 in the early hours of Friday morning, sending shockwaves among investors. The token has seen a very strong performance over the past seven days and it hit an all-time high of $0.2736 on August 16th.
Why Did Price Decline?
This price decline coincided with a decision by Sei Foundation to open airdrop claims to 1 million more wallets than previously anticipated, which included Ethereum, BNB Chain, and Polygon users pouring into the blockchain . Sei Foundation had earmarked 3% (300 million) of SEI tokens for the airdrop, which constitute a significant chunk of the 1.8 billion Sei coins currently circulating out of the token’s total supply of 10 billion coins.
Token airdrops often trigger a cascade of sell-offs as eligible users rush to convert their newfound coins into cash or other cryptocurrencies, thus causing further market instability and decreasing token prices even further due to increased supply rates while demand remains relatively constant or decreases due to uncertainty caused by volatile prices leading up to and following an airdrop event .
It is clear that this recent price drop can be attributed mostly due to this sudden surge in eligible wallet holders for Sei’s air drop event and not necessarily any fundamental shifts within the cryptocurrency market itself , making it likely that once some certainty is restored following this event , we should see SEI back around its previous all time highs again .