SEAM Token Surges 64% as Base Prepares to Increase Gas Limits
SEAM, the native token of the Seamless Protocol, has experienced a significant surge of 64% in the past day, propelled by Base’s announcement to boost its capacity by increasing gas limits. This development has sparked a flurry of activity in the cryptocurrency market, with SEAM trading at $1.99 at press time, marking its highest level since the market crash on August 5th.
The cryptocurrency reached an intraday high of $2.55, representing a remarkable 104% increase from its weekly low of $1.25. As SEAM’s price continues to climb, its market cap has surpassed $52 million, and daily trading volume has spiked by a staggering 2,254% to around $11.4 million, according to data from CoinGecko.
The Seamless Protocol and Base Network
Launched in September, the Seamless Protocol is a fork of Aave v3, a popular DeFi lending platform built on the Ethereum blockchain. Operating on Base, the Layer 2 Ethereum network incubated by Coinbase, Seamless Protocol has garnered attention from industry experts and investors alike.
The protocol was founded by a team of contributors and advisors hailing from prominent firms such as Coinbase, Uniswap, CertiK, and Seashell. According to DefiLlama, Seamless Protocol currently ranks as the 14th largest app on the Base network by total value locked and holds the third position among native Base-based platforms, with approximately $22.22 million in assets locked.
Base’s Expansion Plans and SEAM’s Rally
SEAM’s recent rally follows Base’s announcement to scale its network by incrementally increasing gas limits by 1 Mgas/s per week. This strategic move is part of Base’s broader goal to reach 1 Ggas/s, a pivotal step towards accommodating one billion users on-chain.
The initiative aims to improve scalability and reduce transaction fees, which has piqued the interest of investors in SEAM and the Seamless Protocol. Technical indicators for SEAM suggest that bulls are currently in control, with the Moving Average Convergence Divergence line crossing above the signal line, indicating a continuation of the upward momentum.
On the daily chart, the Aroon indicator reveals a strong upward momentum, with the Aroon Up standing at 92.86%, while the Aroon Down is at a mere 7.14%, signaling minimal downward movement. This divergence typically indicates bullish dominance in the short term.
Market Analysis and Risk Factors
Despite the positive trajectory, the Commodity Channel Index for SEAM has spiked to 358.68 following the recent rally, well above the overbought threshold of 100. Such elevated readings often suggest a potential correction on the horizon, prompting traders to exercise caution.
While SEAM’s performance has been impressive, it’s essential for investors to consider potential risk factors that could impact the token’s price movement. Market volatility, regulatory changes, and macroeconomic factors can all influence the cryptocurrency market and should be taken into account when making investment decisions.
In conclusion, SEAM’s surge in price following Base’s expansion plans underscores the growing interest in Layer 2 solutions and DeFi platforms. As the cryptocurrency market continues to evolve, staying informed and conducting thorough research are key to navigating this dynamic landscape successfully.
