Weeks after the launch of Sei Network, the Layer 1 blockchain protocol has started facing an exodus from foundational decentralized applications (dApps) in what is proving to be a distressing situation for the protocol. The latest protocol to desert the Sei Network is BlueMove, a multi-chain NFT market designed with the Move language.
📢 Important Announcement:— BlueMove (@BlueMove_OA) August 28, 2023
BlueMove will cease operations on Sei Network 72 hours from now, at 4:00 UTC on August 31st, due to the current trading volume on Sei falling short of our expectations.
During this period, we kindly request all users to delist their NFTs to prevent…
BlueMove's exit was attributed to a lower-than-expected transaction volume recorded on Sei Network since the protocol went live on the mainnet earlier this month. Major blockchain protocols place a premium on massive transaction volume, which is proof of its growing and dynamic usage that can also guarantee liquidity that protocols like BlueMove will need to fulfill their potential.
By reason of the exit, BlueMove has instructed its users to delist all of their non-fungible token (NFT) assets in order to prevent avoidable loss. While the call for exit from the Sei Network has not been welcomed very well by members of the community, the timeline for the transition is short, with users having until the 31st of this month to liquidate their holdings or transfer them to other protocols.
With BlueMove also notably halting operations on the Sei blockchain, it was tight-lipped as to which chains users could explore to access its products moving forward.
Shibarium-like hiccup for SEI?
Despite the evolution of the crypto ecosystem, which has seen the launch of two major protocols to date, the ability to meet general public expectations has proven to be arduous. While SEI is finding it hard to hold down its smart contracts, the launch of Shibarium failed, with some initial scalability challenges that sparked a forced stop of the protocol.