The Sonic crypto price continues to consolidate despite the ongoing ecosystem growth and the recent investment. S token was trading at $0.56 on Tuesday, where it has remained at in the past few weeks, and over 50% below its highest level on all time. Is the S crypto token a coiled spring ready to pounce.
Sonic rebranded from Fantom
Sonic is a blockchain platform that emerged from Fantom, one of the oldest chains in the crypto industry. Led by Andre Cronje, Sonic changed some of the limitations that prevented Fantom from seeing strong growth at the time.
For example, Fantom handled between 200 and 4,500 transactions per second (TPS), which is still faster than Ethereum and other popular chains. Sonic, on the other hand, is one of the fastest players in the crypto industry, handling between 10,000 and 370,000 transactions per second with a sub-second finality.
Sonic also changed Fantom’s storage structure, moving away from the tree-like storage structure to the Carmen database. This move reduced the storage needs by about 90%, lowring costs for validators.
Sonic also brought more features, such as the Sonic Gateway, a decentralized layer-2 bridge to Ethereum, enabling faster and secure asset transfer. As a result, it now takes less than 10 minutes to transfer assets from Ethereum to Sonic.
One of the most important feature that Cronje introduced was the fee monetization (FeeM). This is a notable feature that allows developers to earn up to 90% of transaction fees generated by their dApps. This approach has helped developers earn millions of dollars so far.
Growth is continuing
These features have helped Sonic grow to become one of the biggest chains in the crypto market. DeFi Llama data shows that the network has achieved a total value locked (TVL) of over $1.8 billion in assets.
This growth came from established networks like AAVE, Silo Finance, Beets, Pendle, and Shadow Exchange moving to the network. AAVE now has over $436 million assets locked in the network, while Pendle has $134 million.
Stablecoins have also flowed to Sonic, with their market cap jumping to $540 million. USD Coin (USDC) has a 91% dominance in the network. Analysts anticipate that Sonic’s stablecoin market cap will keep surging in the coming months, and possibly hit $1 billion.
Sonic has also become a popular player in the decentralized exchange (DEX) industry. It handled over $964 million in volume in the last seven days, up by 22% from the previous period. Sonic has handled over $3.2 billion in the last 30 days.
In comparison, Cardano, one of the biggest chains in the crypto industry, handled $96.2 million in the last 30 days. Cardano also has a total value locked (TVL) of less than $500 million, even as it boasts a market cap of over $26 billion.
Meanwhile, Sonic sold S tokens worth $10 million to Galaxy, one of the top players in the crypto industry. It hopes that the investment will help it to accelerate its business in the United States.
Sonic crypto price analysis
The daily chart shows that the S crypto price continues to consolidate, a sign that it is still in the price-discovery phase. Its Bollinger Bands have continued to squeeze, a sign that a bullish breakout may happen soon.
Further, the coin has formed an inverse head and shoulders pattern, a popular bullish reversal sign. Therefore, there is a likelihood that the token will go parabolic in the coming weeks, with the next point to watch being at $0.9872, the highest swing in February this year.
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