Sonic Hits 120M Transactions as Token Price Dips 7% and TVL Falls to $1.2B

Sonic, a privacy-focused stablecoin, is currently experiencing heightened price volatility amid a significant milestone in network activity. The blockchain network recently reached 120 million transactions, marking a key development in its six-month history. However, this surge in activity has not translated into stable market performance, as the token’s price and broader ecosystem metrics show mixed signals [1].

The S token reached a high of $0.3555 on Thursday, climbing 25% from its intraweek low. At the time of publication, it was trading at $0.3300, having relinquished some of its early gains [1]. Despite the milestone, Nansen data indicates a recent slowdown in network performance, with transactions falling 202% to 8.6 million in the past 30 days and active addresses dropping 40% to 232,000. This decline contrasts with rising activity on competing layer-1 networks like Arbitrum and Linea [1].

The drop in network activity is mirrored in the broader Sonic ecosystem. According to DeFi Llama, the total supply of stablecoins within the Sonic ecosystem has fallen to $209 million, the lowest level since March and a sharp decline from the year-to-date high of $597 million. Similarly, Sonic’s total value locked (TVL) has dropped from a peak of nearly $2 billion earlier this year to $1.2 billion [1].

Technical analysis suggests a bearish outlook, with the token forming a descending triangle pattern on the daily chart. If the downward trend continues, the next key support level is expected to be the year-to-date low of $0.2490. A break below this level could signal further downside. Conversely, a breakout above the upper trendline would indicate bullish momentum and potential for more gains [1].

While the market remains divided, some traders see long-term value in Sonic’s growing transaction volume, while others view the declining supply as a warning sign. The broader market is closely watching how Sonic navigates these conflicting dynamics in the coming months [1].

Source: [1] Sonic crypto price on edge as network its a 120m milestone (https://crypto.news/sonic-crypto-price-on-edge-as-network-its-a-120m-milestone/)