Sonic Token Faces Market Downturn Despite DeFi success
Sonic (S) token has entered a bear market, with its price plummeting to 50 cents. This represents a 50% drop from its all-time high. The market cap has also fallen from $2.8 billion in february to $1.48 billion.
Despite this downturn, Sonic’s decentralized finance (DeFi) ecosystem is thriving. According to DeFi Llama, the total value locked (TVL) in Sonic’s ecosystem reached a record high of $860 million this week.In Sonic terms, this TVL is equivalent to $1.7 billion.
unlike other chains, Sonic’s growth is driven by various decentralized applications.As a notable example, Silo Finance holds $202 million in assets, while AAVE V3 has accumulated over $184 million within a month of its launch. Avalon Labs, Shadow Exchange, and SwapX are other key players in the Sonic ecosystem.
- Beets and Veda are the largest liquid staking platforms.
- 60+ apps now participate in feem, earning 90% of network fees.
Sonic’s growth could accelerate as more dApps deploy on the network. Circle, the company behind USD Coin (USDC), may soon deploy its stablecoin on Sonic, boosting the network’s stablecoin amount from the current $255 million.
Sonic recently launched a virtual and physical card, allowing users to pay with the S coin. This card is accepted by over 130 million merchants worldwide.
These developments occurred less then three months after Sonic’s rebranding from Fantom. The rebranding introduced features like increased transaction speed and lower costs.
Though, Sonic’s price analysis suggests a potential breakdown. The token has formed a rising wedge pattern, often leading to a strong price drop.A head and shoulders pattern with a neckline at $0.3795 also indicates a possible price drop.
Despite these challenges, Sonic’s future looks promising. The network’s rebranding from Fantom has introduced new features, including faster transactions and lower costs.With Circle’s stablecoin deployment and a new payment card,Sonic’s growth could accelerate. The card, accepted by over 130 million merchants, could boost its adoption. Circle’s stablecoin deployment will likely increase the network’s stablecoin amount from $255 million. Sonic’s strong fundamentals and growing ecosystem suggest it may recover in the coming weeks.
