The Sei Foundation plans to enhance its Layer 1 blockchain by upgrading Sei to Version 2. This upgrade will bring in a faster and more efficient Ethereum Virtual Machine (EVM) to boost the network's performance.

Sei's Step-by-Step V2 Upgrade

The Sei V2 upgrade will be rolled out in three phases to reduce risks, manage user expectations, and optimize network performance. This gradual approach aims to ensure a stable and scalable network for all Sei Contributors.

The initial phase will involve validating software upgrades and transitioning the current Sei Pacific-1 mainnet to the new "v2" version. This will enable the deployment of EVM-based contracts and infrastructure integrations on the Sei network.

While not all features will be available at the start, the foundation mentioned that bridges and other components will need time to be deployed before community use. However, an official announcement will be made once the v2 network is stable and essential infrastructure is ready for use.

If approved, the Sei mainnet upgrade to Version 2 is set for Monday, May 27th.

SEI Price Surge on V2 Upgrade News

The announcement of the Sei V2 upgrade has led to an 11% increase in the SEI token's price, making it one of the top gainers in the market over the last 24 hours.

The SEI token is now trading at $0.5830, surpassing its previous resistance level of $0.560. This breakthrough aims to solidify the token's price above this level, a crucial step towards testing higher resistance levels and potentially reaching its all-time high (ATH) of $1.14.

Moreover, the token has seen a trading volume of $95 million post-announcement, marking a significant 150% increase compared to the previous weekend, as per CoinGecko data.

Despite these positive developments, the approval of the governance proposal for the Sei blockchain upgrade remains uncertain.

Future Price Scenarios and Targets

In a bullish scenario with a successful V2 upgrade, key resistance levels to monitor include $0.592, $0.613, and $0.637. These levels could serve as targets for the token's upward momentum.

Conversely, in case of a price correction, the $0.544 and $0.527 zones will be crucial for potential support and stabilization of the SEI price in the near future.