Research Summary
The report provides a comprehensive analysis of Sei’s performance in Q2 2024, highlighting key metrics, financial data, and network developments. It covers Sei’s Total Value Locked (TVL), the performance of its native token SEI, the impact of the Sei V2 upgrade, and the dynamics of its DeFi and NFT sectors.
Key Takeaways
Sei’s Total Value Locked and DeFi Landscape
- Significant Growth in TVL: Sei’s Total Value Locked (TVL) in USD terms saw a significant increase of 32.9% quarter-over-quarter (QoQ), reaching $60.9 million. This growth was largely driven by the launch of new EVM-compatible protocols and Decentralized Exchanges (DEXs) like DragonSwap.
- Shift in DEX Dominance: Astroport, once a dominant DEX on Sei, saw its TVL plummet by 92.7% QoQ, reducing its TVL dominance from 98.9% to a mere 5.5%. Meanwhile, DragonSwap emerged as a significant player in the DEX landscape.
Performance of SEI Token and Network Revenue
- SEI Token Depreciation: SEI, the native token of Sei, depreciated by 58.7% QoQ to a price of $0.34, and its market cap ranking dropped from 59th to 69th.
- Decline in Network Revenue: Sei’s quarterly revenue, denominated in SEI, saw a steep decline of 85.4% QoQ, amounting to 86,376 SEI. This decline reflects the broader downturn in the network’s performance.
NFT Sector Downturn
- Decrease in NFT Activity: The NFT sector on Sei witnessed a downturn, with sales, sellers, and buyers decreasing by 88.2%, 89.5%, and 85.6% QoQ, respectively. Despite this, Pallet maintained its lead, capturing 99.8% of the NFT trading volume in the second quarter.
Impact of Sei V2 Upgrade
- Enhanced Network Capabilities: The Sei V2 upgrade, which went live on May 27, 2024, introduced Ethereum Virtual Machine (EVM) compatibility, optimistic parallelization, and a revamped storage interface with SeiDB, enhancing the network’s capabilities. This upgrade significantly altered the TVL and DeFi landscape on Sei.
Actionable Insights
- Monitor the Impact of Sei V2 Upgrade: The Sei V2 upgrade has significantly altered the DeFi landscape on Sei, leading to a surge in TVL and the emergence of new protocols. Stakeholders should monitor the ongoing impact of this upgrade on Sei’s ecosystem.
- Assess the Performance of SEI Token: Despite the growth in TVL, the SEI token has depreciated significantly. It’s crucial to assess the factors contributing to this depreciation and its potential implications for the network’s financial health.
- Understand the Dynamics of the NFT Sector: The downturn in the NFT sector on Sei, despite the dominance of Pallet, indicates a shift in market dynamics. Understanding these changes could provide insights into future trends in Sei’s NFT marketplace.
