SEI token takes a hit, plunges 26% after a splendid performance

• 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.

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 16.

But why is the price of SEI dropping? Why is SEI going down after such a magnificent surge? Well, this article shall delve into the details of what caused SEI to take a dive.

Here’s why the SEI price is going down

This price decline coincided with a decision by Sei Foundation to open airdrop claims to 1 million more wallets than previously anticipated.

Sei blockchain mainnet beta went live on August 15 promising to hold a token airdrop afterwards.

Sei today reported that the number of wallets eligible for the airdrop had surged from the initially planned number of 500,000 wallets to roughly 1.5 million in response to what the Sei Foundation termed “fervent demand.”

Due to fervent demand, Sei Foundation has increased the number of eligible wallets for the cross-bridge airdrop from 500K to 1.5M on @ethereum, @0xPolygonLabs, @arbitrum, @BNBCHAIN, @solana, @optimismFND and @osmosiszone.

— Sei Foundation (@Sei_FND) August 17, 2023

The wallet surge is believed to have incorporated users from a variety of other blockchains pouring into the blockchain including but not limited to Ethereum, BNB Chain, and Polygon.

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.