Sonic Token Suffers Bear Market Amid DeFi Growth

Sonic token has crashed into a bear market, even as its decentralized finance ecosystem surges to a record high.

Current Price and Market Cap
Sonic (S) price was trading at 50 cents on Saturday, down by about 50% from its all-time high. This drop has led to a significant decrease in its market cap from $2.8 billion in February to $1.48 billion.

DeFi Ecosystem Performance
Sonic’s crash occurred even as its DeFi ecosystem continued to thrive. According to DeFi Llama, the total value locked in its ecosystem jumped to a record high of $860 million this week, increasing to 1.7 billion in Sonic terms.

Notably, this growth is being driven by numerous decentralized applications (dApps). Silo Finance has $202 million in assets, while AAVE V3 has accumulated over $184 million just a month after its launch.
Other top players in the Sonic ecosystem include Avalon Labs, Shadow Exchange, and SwapX, while Beets and Veda stand out as the largest liquid staking platforms.

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This growth trend could continue in the upcoming months as more dApps deploy on the network. A likely reason behind this is the fact that all deployers are earning about 90% of network fees generated by their applications.

> 60+ apps now participate in FeeM.
> They’re earning 90% of the network fees generated by their apps, directly rewarding them for user activity.
> Only on Sonic.
> — Sonic Eco (@SonicEcosystem) March 20, 2025

Possible Future Developments
Sonic’s growth could accelerate in the coming weeks, especially with Circle, the company behind USD Coin (USDC), hinting at deploying its stablecoin into the network. This move could boost the amount of stablecoins on the network from the current $255 million.

Additionally, Sonic recently debuted its virtual and physical card, allowing users to pay with the S coin, which is accepted by over 130 million merchants worldwide.
These developments occurred less than three months after the network rebranded from Fantom, introducing features such as increased transaction speed, smart contract execution, and reduced costs.

Sonic Price Analysis

Price Chart (Source: crypto.news)
While Sonic demonstrates strong fundamentals, technicals suggest it may soon experience a breakdown. The token has formed a rising wedge pattern, typically leading to a strong drop. Furthermore, Sonic has established a head and shoulders pattern, with its neckline at $0.3795.

Thus, there is a risk that the price may decline in the coming days, potentially reaching the key support at $0.3795, which would signify a 25% decrease from the current level.

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