SEI Surges 45% on Wyoming Stablecoin Pilot and Airdrop Hype Wormhole Jumps 38% as Ripple Integration Boosts Multichain Settlement

Bitcoin remained relatively stagnant this week, with liquidity shifting towards smaller-cap coins that presented unique narratives. Interoperability-focused projects like Wormhole (W) and new technology Layer-1s such as SEI and APTOS (APT) saw significant gains due to fresh partnerships and discussions around ETFs. Meanwhile, a modular Layer-2 project, MOVE, experienced a substantial increase following an aggressive buy-back initiative. Even meme coins like BANANAS31 and JANITOR saw gains, driven by social media virality, while an AI-for-data micro-cap, TAGGER (TAG), benefited from new exchange listings. However, not all coins performed well; DeFi veterans like BSW and ALPHA faced pressure due to delisting concerns, highlighting the dual nature of market sentiment.

SEI, a new technology Layer-1, saw a 45% increase in price, driven by record Total Value Locked (TVL) of $570 million after being shortlisted for Wyoming’s stablecoin commission pilot. This, coupled with an upcoming v2 airdrop snapshot and a 9% validator APY bump, contributed to its rise. The daily DEX volume crossed $60 million as traders were attracted to the narrative of “fast-finality rails for AI gaming.”

Wormhole (W) experienced a 38% increase, largely due to Ripple’s integration of Wormhole to bridge the XRP Ledger mainnet and upcoming XRPL-EVM side-chain with over 35 networks. This integration positioned W as crucial infrastructure for institutional multichain settlement, drawing praise from major financial institutions and significantly boosting trading volume.

The performance of these altcoins suggests a market eager for narratives beyond the Bitcoin and Ether duopoly. Interoperability and throughput-focused base layers drew significant interest, indicating a focus on speed and interoperability among builders and institutions. Speculators, on the other hand, chased high-beta themes like AI data pipes and meme culture, showing retail investors' willingness to take risks when presented with compelling headlines. However, the delisting of DeFi stalwarts like BSW and ALPHA serves as a reminder of the potential for liquidity to vanish overnight due to compliance issues. Overall, the week was characterized by sector rotation rather than a broad rally, with the potential for an altcoin season if Bitcoin breaks out or for weaker narratives to deflate if macro or regulatory headwinds increase.