Sonic Blockchain's Ecosystem Surges with $1.669 Billion in TVL, Driven by Avalon Labs, Silo, and SwapX

Sonic blockchain, originally stemming from the Fantom network, has emerged as a new Layer-1 architecture designed to address the inefficiencies of its predecessor. With a streamlined architecture and a rapid Directed Acyclic Graph-based consensus mechanism, Sonic aims to compete with high-performance blockchains like Solana. It offers full EVM compatibility, making it an attractive environment for developers to build decentralized applications (dApps) that require high speeds, throughput, and cost-effective transactions.

Launched in August 2024, Sonic has quickly established one of the most dynamic and rapidly-growing ecosystems in the blockchain space, hosting dozens of innovative dApps. Three notable dApps on Sonic are driving this growth: Avalon Labs, Silo, and SwapX.

Avalon Labs is transforming the utility of Bitcoin by financializing it on the Sonic blockchain. This includes introducing new use cases such as BTC lending, yield generation, a BTC-backed stablecoin, and credit cards for spending BTC in real life. Avalon’s CeDeFi lending platform allows Bitcoin holders to borrow digital assets at a fixed rate, bridging the gap between DeFi and traditional finance. USDa, a fully collateralized stablecoin backed by Bitcoin deposits, offers a fixed lending rate of 8% and an annualized yield of up to 15%, turning BTC into a sophisticated, yield-bearing financial instrument. Avalon supports multiple blockchains, including BNB Chain and Ethereum, and its native token, AVL, offers utility in the form of incentives, staking, and governance rights. With over $1.269 billion in total value locked, Avalon Labs is enhancing Bitcoin’s utility and attracting attention to the Sonic blockchain.

Silo, one of the first dApps to launch on Sonic, has established itself as the network’s leading noncustodial lending protocol. Its unique “isolated pool” approach creates dedicated markets for each asset, ensuring that any risk is contained within each silo. This makes Silo one of the most secure and stable protocols for generating yield on crypto holdings. The March 2025 V2 update introduced customizable markets and a revenue-sharing model for new lending markets, resulting in over $400 million in total value locked and over $200 million in active loans. Silo’s native token, SILO, incentivizes users to provide liquidity and stake the token for additional rewards. The update also introduced programmable extensions called “hooks,” allowing developers to deploy idle liquidity on third-party protocols and create permissioned markets for regulated assets.

SwapX, the preeminent decentralized exchange on Sonic, aims to provide a streamlined and user-friendly trading experience. Its Algebra Integral V4 architecture optimizes capital efficiency and reduces slippage, even for high-volume trades. SwapX leverages a ve(3,3) tokenomics structure based on its native asset, SWPX, to incentivize users to participate in governance and align their interests with liquidity providers. The protocol’s modular design allows for easy integration with other protocols and custom fee strategies, positioning SwapX as a base layer for other protocols to build on. SwapX’s collaboration with Orbs enables it to aggregate liquidity from other sources, enhancing execution prices and protecting against miner extractable value (MEV) attacks.

Sonic’s momentum is largely driven by its DeFi applications, thanks to its rapid finality and low fees. These traits enable high-frequency DeFi interactions that are not possible on older architectures like Ethereum. Sonic’s capabilities also make it an ideal platform for various Web3 applications, including gaming and NFTs. The success of dApps like Silo Finance, Avalon, and SwapX indicates a bright future for Sonic, as these applications continue to generate traction and attract users to the platform.