Sonic Token Faces Steep Decline, Losing Over $1.3 Billion in Value
Sonic, the token by Andre Cronje, is experiencing a sharp decline. Since its relaunch in January,it has lost nearly $1.3 billion in market capitalization. The price dropped to $0.3775 on Sunday, a fall of more than 61% from this year’s peak.
The drop reflects a slowdown in Sonic’s ecosystem.The stablecoin market cap is now $446 million, down from $597 million.A declining stablecoin supply usually means less activity in the network.
Data shows the total value locked in Sonic’s decentralized finance has decreased from nearly $2 billion in May to $1.53 billion. This drop is largely due to outflows from platforms like AAVE and Sio Finance.
Sonic’s daily revenue has also taken a hit. It fell to $9,600 on Saturday, down from a high of $42,000 in May. The token’s performance has suffered as the funding rate across exchanges has turned negative.
A negative funding rate means investors expect the price to fall. Santiment data confirms this, with the funding rate at 0.05%, its lowest in over a week.
Technical analysis shows the S price in a downward trend. It fell to $0.3810, forming a double-top pattern, which is a bearish signal. with Sonic below the 50-period moving average, the price may continue to fall, targeting the support low of $0.3151.
