Circle Ventures Investment Boosts SEI Price Volatility

Circle Ventures, the investment arm of the stablecoin issuer Circle, has made a significant investment in the layer-1 protocol Sei, aiming to expand the USDC ecosystem.

Circle Ventures Investment Boosts SEI Price Volatility

Circle Ventures, the investment arm of the giant Circle, has injected funds into the layer-1 protocol Sei. This was disclosed by Sei in an announcement on the evening of November 15, although the specific amount of the investment was not disclosed.

The investment's objective is to integrate USDC onto Sei, providing fast and cost-effective transactions globally while enhancing liquidity for the overall digital currency market, according to Sei's statement. Samy Karim, Director of the Sei Foundation, stated:

"As the cryptocurrency industry matures, stablecoins will become increasingly important to its growth. Sei can provide the infrastructure to meet this demand."

Recently, Circle has taken several actions to strengthen the USDC ecosystem, such as collaborating with Noble and dYdX to facilitate the seamless transfer of this stablecoin across blockchains and deploying the v2.2 update to optimize USDC and EURC (formerly EUROC).

Regarding Sei, it has faced a turbulent period since its controversial token issuance, resulting in dwindling transaction activity to the extent that the BlueMove marketplace decided to withdraw from Sei.

Following the news of the investment from Circle Ventures, the SEI price immediately surged by 15%, although it is currently correcting back to previous levels.

15-minute chart of SEI/USDT pair on Binance at 00:35 AM on November 16, 2023