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Sonic's TVL Surges 24% in 30 Days, Reaching $1 Billion

Coin WorldTuesday, Apr 15, 2025 5:52 am ET

2min read

Sonic, a recently rebranded blockchain network, has been making waves in the crypto industry with its rapid growth and innovative features. The network, formerly known as Fantom, has gained significant traction among developers and users due to its lower fees compared to other layer-1 chains. This has led to a surge in the number of decentralized finance (DeFi) applications (dApps) on the Sonic blockchain, with 116 developers currently active on the network.

The total value locked (TVL) in the Sonic ecosystem has increased by 24% in the last 30 days, reaching $1 billion. This growth is particularly impressive considering that other established networks, such as Tron, Sui, Aptos, and Cardano, have fewer dApps. The top dApps on the Sonic blockchain include AAVE, Silo Finance, Beets, Veda, and Pendle.

Sonic's innovative fee monetization program has been a key driver of its growth. This program returns about 90% of all the fees generated by apps on the chain to the developers, with the remaining 10% going to the validators. This model has proven successful in attracting developers to the network.

In addition to its growing ecosystem, Sonic has also seen significant growth in stablecoin holdings, with over $543 million in stablecoins, most of which are USD Coin. This makes it a top chain in USDC issuance, a notable achievement given its relatively short time in the market. The number of transactions on Sonic has also increased, jumping to over 852k from 358k in its lowest point in March.

Despite its strong ecosystem growth, the Sonic token has underperformed the market. One reason for this is the expectation of high dilution among existing holders in the coming months. Sonic launched with a supply of 3.175 million tokens, which will increase by 6% in June. The newly minted tokens will be distributed to Fantom Opera and Sonic users through an airdrop that includes a burning mechanism to reduce the supply count over time.

Additionally, developers will mint additional tokens this year, with the new cash going towards growing the team, marketing, and increasing S adoption. Sonic will mint 47,625,000 tokens annually for six years, with any unused tokens being burned during the year.

Technical analysis of the Sonic token price shows a rebound in the past few days after bottoming at $0.3803 earlier this month. The token has formed a double-bottom pattern at $0.4088 and a neckline at $0.6327, its highest level on March 26. The token has moved slightly above the 50-period moving average and formed a bullish flag pattern, as well as a small inverse head and shoulders pattern.

According to the analyst's forecast, the Sonic price is likely to have a strong bullish breakout, with the next point to watch being at $0.6327, up by 23% from the current level. A drop below the support at $0.50 would invalidate the bullish outlook.

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