Recently, the Layer1 project SEI has attracted widespread attention in the market, with its price soaring nearly 37% in a short period, even surpassing the rise of Bitcoin. This dramatic price movement has raised investors' doubts about its sustainability. Let’s delve into the logic behind the price pump of SEI.

The rise of SEI is not without basis, as there are multiple on-chain data supporting it. First, the trading volume on decentralized exchanges (DEX) reached a record high of $236 million. Secondly, the total value locked (TVL) surpassed $1.3 billion, approaching last year's peak. Even more notably, the supply of USDC on SEI has grown from 1.2 million to 225 million in the past three months, indicating that a significant amount of funds is flowing into the ecosystem.

In addition to these actual data, SEI has also been driven by other positive factors. The attention from Wyoming towards SEI, as well as the upcoming Giga upgrade, have added to its appeal. The Giga upgrade promises to bring gigabit-level parallel processing capabilities and 400 milliseconds settlement speed, which positions SEI as an efficient DeFi solution.

However, investors still need to remain cautious about the short-term trend of SEI. Currently, the range between $0.3 and $0.36 is a key resistance area. If SEI can solidly break through this range, then a target above $0.5 could become achievable. On the contrary, if it cannot hold, it may fall back to the support level below $0.25.

In the long term, the development of SEI will depend on several key factors: whether the Giga upgrade can be realized on time, whether TVL can continue to grow, and whether large investors will further invest and promote on this basis.

It is worth noting that wise investors not only pay attention to price fluctuations, but also value the sustainability of trading volume and market sentiment. The current trend of SEI is driven not only by technical factors but also by the combined effects of market narratives and capital flows.

For investors, the key is to calmly analyze the fundamentals and market dynamics of SEI, rather than blindly chasing rises and falls. Whether this rise is the beginning of a bull market or another FOMO (fear of missing out) trap still needs time to verify. Regardless, maintaining rationality and caution in the cryptocurrency market is always a wise choice.