SEI Blockchain Hits Record High As X Cracks Down

In a week marked by both explosive growth and sudden setbacks, the world of blockchain and digital assets has been anything but dull. On January 13, 2026, the SEI blockchain reached a historic milestone, recording over 1.5 million daily active addresses for the first time in its history. The achievement, highlighted in a post by the Sei team, signals a wave of organic adoption across multiple sectors, from decentralized finance (DeFi) to gaming and consumer apps. At the same time, the digital asset space has been rattled by a dramatic policy shift at X (formerly Twitter), which sent shockwaves through InfoFi projects like Kaito, resulting in a steep 22% price drop within just 30 minutes.

Let’s start with the good news for blockchain enthusiasts. According to a post from the SEI team on January 13, the network’s daily active address count surged past 1.5 million, a figure that has been steadily climbing over the past four months. This isn’t just a flash in the pan—SEI’s growth appears to be compounding, with adoption spreading far beyond a single killer app. In fact, 19 different apps on the SEI blockchain have now crossed the threshold of 100,000 monthly active addresses, a clear sign that user engagement is both broad and deep.

One of the standout performers is Kindred Labs, whose AI-powered companion platform boasts more than 100,000 daily active addresses. This puts Kindred ahead of the pack in the non-financial consumer and Web3 entertainment space, where competition has become increasingly fierce. But it’s not just entertainment that’s driving SEI’s numbers. In the DeFi sector, Takara Lend has emerged as the second most active EVM lending app by daily addresses, trailing only the heavyweight Aave protocol. Meanwhile, Yei Finance has climbed into the ranks of the top five EVM chains by total transaction count, underscoring the massive on-chain volume and usage SEI is now seeing.

The gaming sector is no slouch, either. Eleven games on SEI have each surpassed 300,000 monthly active addresses, a testament to the growing popularity of blockchain-based gaming experiences. Payments are also seeing a boom: peer-to-peer stablecoin supply on SEI shot up 155% over the past six months, while weekly stablecoin volume surged 104% in just three months, hitting approximately $1.5 billion. These statistics, reported by SEI, paint a picture of a blockchain ecosystem firing on all cylinders.

With all this momentum, it’s perhaps no surprise that SEI’s token price has responded positively. As of January 16, 2026, SEI was trading at $0.1240, marking a 1.8% increase in the previous 24 hours. Some market watchers are even speculating about the potential for a 500% rally, which would see SEI’s price soar as high as $1.80. While such predictions should always be taken with a grain of salt, the underlying fundamentals—rapid adoption, diverse app activity, and surging transaction volumes—certainly give bulls plenty to chew on.

SEI’s growth spurt comes at a pivotal time, with the network gearing up for a major upgrade dubbed Giga. This upgrade, backed by formal research from Sei Labs, will introduce multiple concurrent proposers and new MEV (Miner Extractable Value) patterns, aiming to further enhance the network’s scalability and efficiency. In addition, SEI recently completed an integration with Allora, designed to bolster its on-chain market capabilities. These technical advancements suggest that SEI is not resting on its laurels, but is actively investing in infrastructure to support its swelling user base.

Yet, while SEI basks in the glow of record-breaking adoption, not all corners of the blockchain universe are celebrating. Over at X, a major policy change has sent ripples through the InfoFi sector. On January 15, 2026, Nikita Beer, X’s Product Lead, announced that so-called “InfoFi” apps would be banned from the platform if they incentivize users to post on X. According to Beer, “InfoFi apps in the form of compensation will be banned from platform X in the future if users post on X.” The rationale? These apps are seen as undermining the quality of the platform by flooding it with excessive noise and low-quality content, much of it generated by artificial intelligence.

The fallout was immediate and dramatic. Kaito, a prominent InfoFi project that rewards users for posting content on X, saw its token price plummet 20% on January 16, 2026, following the announcement. The pain didn’t stop there—Kaito dropped a further 22% within just 30 minutes of the policy taking effect. Kaito had become a go-to marketing tool for new blockchain projects struggling to attract users, leveraging X’s vast reach to drive engagement. The practice of posting promotional content on X for rewards—known as “Yaping”—had gained particular traction among Generation Z in the United States and the Kryptophan community over the past year.

But here’s the rub: much of the content generated through Yaping is considered low-quality, often the product of automated AI scripts rather than genuine user engagement. This has led to what some describe as a “filter bubble” effect, where users see endless posts about the same obscure projects, while the broader X community is left wading through a sea of irrelevant noise. For X, the decision to pull the plug on InfoFi apps is an attempt to restore balance to its platform, even if it means ruffling feathers in the blockchain marketing world.

The reverberations of X’s policy change have been felt beyond just InfoFi projects. Bitcoin, the bellwether of the crypto market, slipped 1.3% on January 15, 2026, and was trading around $95,000 at last check. While a single-day dip is hardly cause for panic in the notoriously volatile crypto markets, it does reflect a degree of uncertainty as platforms and regulators grapple with the challenges of managing digital asset ecosystems. The fear and greed index—a metric that gauges investor sentiment in the virtual asset market—stood at 54 points on January 16, 2026, indicating a neutral outlook. For those keeping score, a reading closer to zero signals fear and potential overselling, while a number near 100 points to rampant greed and the risk of a market correction.

All told, the past week has offered a snapshot of both the promise and the pitfalls of the digital asset revolution. SEI’s surging adoption and technical innovation stand as a testament to what’s possible when blockchain projects focus on real utility and broad-based engagement. At the same time, the turbulence surrounding InfoFi apps and X’s crackdown on incentive-driven content highlights the ongoing struggle to balance growth with quality and authenticity in the digital age. For investors, developers, and everyday users alike, the message is clear: the only constant in crypto is change, and staying nimble is more important than ever.

With new milestones being set and old practices being challenged, the blockchain and crypto landscape continues to evolve at breakneck speed, offering both opportunities and lessons for those willing to pay attention.