Why did the price of S go up?

Sonic (S) increased by 7.6% in the last 24 hours, outperforming the overall crypto market, which dropped by 0.68%. Here’s why:

1. $200M U.S. Traditional Finance Expansion – A recently approved governance proposal boosts hopes for institutional adoption
2. Technical Breakout – The price surpassed an important resistance level at $0.3015
3. Airdrop Momentum – Season 2 rewards have driven a 174% increase in trading volume

In-Depth Look

1. U.S. Expansion Catalyst (Positive Outlook)

Summary:
On September 29, a governance proposal passed with overwhelming support (99.99%), allocating 150 million S tokens (worth about $47.7 million) to create Sonic USA LLC. This new entity will focus on launching ETFs and forming partnerships with Nasdaq (The Defiant). This follows a groundbreaking U.S.-eligible airdrop in June, a first for major crypto projects under U.S. regulations.

Why it matters:
The strong approval shows the community’s support for Sonic’s move into traditional finance. Given that Bitcoin and Ethereum ETFs currently manage $187 billion in assets, investors are optimistic Sonic could attract institutional money through compliant financial products.

What to watch:
Keep an eye on progress with the $50 million ETF project. Any official filings with the U.S. Securities and Exchange Commission (SEC) could significantly boost Sonic’s value.

2. Technical Breakout (Mixed Signals)

Summary:
Sonic’s price has moved above the 23.6% Fibonacci retracement level at $0.3015 and surpassed the 7-day simple moving average (SMA) at $0.275. However, it still faces resistance near the 200-day exponential moving average (EMA) at $0.386.

Why it matters:
The MACD indicator, which helps identify momentum, turned positive for the first time since August, suggesting that downward pressure is easing. Today’s trading volume of $197 million is 83% higher than the 20-day average, showing strong buying interest.

Key level to watch:
If Sonic closes above $0.324 (the high from September 16), it could aim for $0.351, based on Fibonacci extension levels.

3. Airdrop-Driven Activity (Positive Impact)

Summary:
Participants in Sonic’s Season 2 airdrop have increased their transactions by 40% this week (CoinMarketCap). While 25% of the rewards are available immediately, which may lead to some selling, the remaining 75% are locked until 2026, helping to maintain liquidity.

Why it matters:
The 174% spike in trading volume suggests new users are buying Sonic tokens to qualify for the airdrop. With $82 million in unclaimed rewards from Season 1, some short-term price swings are expected.

Conclusion

Sonic’s recent price increase is driven by its strategic expansion into the U.S. market, positive technical signals, and incentives from airdrops. However, the long-term success depends on turning this excitement into real institutional investment.

Key point to watch: Can Sonic maintain its price above $0.30 if Bitcoin’s market dominance (currently 57.96%) continues to rise? Also, monitor the Sonic/USDC trading pair for changes in liquidity.

What could affect the price of S?

Sonic is balancing strong growth in its ecosystem with some ongoing market risks.

1. Institutional Growth – A $25 million fund and plans for a U.S. ETF could increase adoption (Positive)
2. Developer Rewards with Fee Monetization – Giving 90% of fees to developers might boost app activity (Mixed)
3. Airdrop Impact – Distributing 190.5 million Sonic (S) tokens to U.S. users could lead to selling pressure (Negative)

In-Depth Look

1. Institutional Growth & ETF Plans (Positive Outlook)

Summary:
Sonic is expanding in the U.S. with a $50 million ETF project and a $100 million investment linked to NASDAQ (CoinTelegraph). CMCC Global’s $25 million “Resonance” fund focuses on DeFi protocols, causing a 70% jump in trading volume after the announcement.

What this means:
Big investors getting involved shows confidence in Sonic’s technology, which can handle 400,000 transactions per second with very fast processing times. This could help keep demand steady. However, getting ETF approval can take time due to regulations, so there might be short-term uncertainty but good long-term potential.

2. Developer Rewards & Fee Monetization (Mixed Outlook)

Summary:
Fee Monetization (FeeM) sends 90% of transaction fees to app developers. There are over 227 apps live, earning a total of 2.09 million Sonic (S) tokens in revenue (Sonic Blog).

What this means:
FeeM encourages developers to build on Sonic, which is positive. The recent 19.42% weekly price increase matches the growing developer interest. However, to balance new token issuance, the network needs more users because 5% of fees from non-FeeM transactions are burned (removed from circulation). So, sustained user growth is key.

3. Airdrop Sell Pressure & U.S. Access (Negative Outlook)

Summary:
The airdrop of 190.5 million Sonic (S) tokens includes U.S. residents, with 75% of tokens locked up for 9 months. Early claims cause some tokens to be burned, but after the lock-up period, selling could increase. This was seen in June when prices dropped 22% after an airdrop (CCN).

What this means:
Expect some price swings in the short term. However, allowing more U.S. users to access Sonic could improve liquidity. Keep an eye on the September 29 vesting date and how many tokens are burned.

Conclusion

Sonic’s price is caught between positive institutional interest and risks from airdrop-related selling. The $0.28 to $0.30 price range (the 200-day moving average) is important. If Sonic breaks above this, it could reach $0.33 (a key technical level). If not, it might fall back to $0.24 support.

Will FeeM-driven app growth keep up with new token supply? Watch weekly active apps and token burn rates for signs.

What are people saying about S?

The Sonic (S) community is divided between hopeful investors holding strong and others feeling worn out by recent setbacks. Here’s the latest:

1. Dreams of $10 to $100 prices – Retail investors are betting on ETFs and free token giveaways (airdrops)
2. TVL (Total Value Locked) dropped 67% – After a deal with Wintermute, Sonic faces a liquidity crunch
3. Wall Street connection – A $150 million Nasdaq PIPE deal and plans for a crypto ETF
4. Technical signs of a rebound – Chart patterns suggest a possible price turnaround, but trading volume is low

Deep Dive

1. Retail optimism: “Pump it to $10!”

@SpacePoernchen says: “Let’s make Sonic Great Again and pump it to $10”
– Posted on 2025-09-16
View original post
What this means: Some retail investors are very optimistic, hoping for a big price jump fueled by hype and Sonic’s expansion in the U.S. But to reach $10, Sonic’s price would need to increase by over 3,200%, which is a big challenge given its current market value of $852 million.

2. TVL collapse signals trouble

@TheDefiant reports: “Sonic’s TVL dropped 67% since May as the price fell… yield-focused users are leaving”
– Published on 2025-09-10
Read the article
What this means: The sharp drop in TVL shows that fewer people are using Sonic’s decentralized finance (DeFi) services. Many users who were attracted by high rewards are now exiting, and with the token price down 69% from its peak, staking incentives may no longer be enough to keep users engaged.

3. Wall Street move: $150M Nasdaq PIPE and ETF plans

@SonicLabs announces: “$150 million proposal approved for Nasdaq PIPE and crypto ETF”
– Posted on 2025-09-01
Read more
What this means: This is a positive step toward gaining institutional trust. However, issuing 150 million new Sonic tokens (about 5.2% of total supply) could increase the number of tokens available on the market, which might limit short-term price gains.

4. Technical analysis: Possible rebound?

@Coinpedia notes: “Double-bottom pattern forming around $0.316 support… MACD indicator suggests bullish crossover”
– Published on 2025-07-31
See full analysis
What this means: The price range between $0.30 and $0.35 is important. If Sonic closes above $0.383, it could trigger a short-term rally toward $0.45. However, the Relative Strength Index (RSI) at 41.8 shows weak buying momentum, so the rebound is not guaranteed.

Conclusion

The outlook for Sonic is mixed. Optimism around institutional adoption and new listings contrasts with weak on-chain data and falling liquidity. The Nasdaq PIPE deal and Coinbase listing in June 2025 have raised Sonic’s profile, but the project still needs to prove it can keep users engaged beyond those attracted by free tokens. Watch the $0.30 support level closely this week: if it breaks, the hopeful double-bottom pattern may fail, but if it holds, it could attract buyers looking for a bargain before Q4’s ETF updates.

What is the latest news about S?

Sonic is gaining momentum thanks to new funding and leadership changes. Here’s the quick update:

1. Ecosystem Fund Launch (September 30, 2025) – A $25 million investment led to a 70% jump in trading volume.
2. New CEO Named (September 29, 2025) – Blockchain expert Mitchell Demeter steps in as CEO.
3. Technical Signs of Recovery (September 30, 2025) – Key indicators show price rising by 7%.

In-Depth Look

1. Ecosystem Fund Launch (September 30, 2025)

What Happened?
CMCC Global introduced a $25 million "Resonance" fund to support decentralized finance (DeFi) projects and consumer apps built on Sonic. The goal is to encourage Fee Monetization (FeeM) models, which help projects generate sustainable revenue. This announcement caused a 70% increase in daily trading volume, reaching $126 million, and pushed Sonic’s price up by 7%.

Why It Matters
This is a positive sign for Sonic because backing from big investors can speed up developer interest and increase liquidity (how easily the token can be bought or sold). The focus on FeeM means the ecosystem is aiming for long-term value, not just short-term gains. (Yahoo Finance)

2. New CEO Named (September 29, 2025)

What Happened?
Mitchell Demeter, who helped start Canada’s first Bitcoin exchange, was appointed CEO. His role is to build partnerships with traditional financial institutions and expand Sonic’s presence in the U.S. This news helped Sonic’s price rise by 5%, even though many other cryptocurrencies were struggling.

Why It Matters
Demeter’s experience in traditional finance (TradFi) could help Sonic connect its fast blockchain technology with regulated markets, opening new opportunities. However, the token’s growth will depend on successfully rolling out plans like the $50 million ETF initiative announced earlier this year. (Coinspeaker)

3. Technical Signs of Recovery (September 30, 2025)

What Happened?
The Relative Strength Index (RSI), a tool that measures if an asset is overbought or oversold, moved from oversold to a neutral level of 53.65. Bollinger Bands, which track price volatility, suggest the price is bouncing back toward a resistance level of $0.28. Sonic also moved above its 20-day Simple Moving Average (SMA), indicating upward momentum.

Why It Matters
These technical signals might attract short-term traders looking to profit from price moves. However, broader market risks remain. For example, Bitcoin’s dominance at nearly 58% means investors might shift money away from smaller cryptocurrencies like Sonic. Watch the $0.24 price level closely as a key support point. (Yahoo Finance)

Conclusion

Sonic’s new ecosystem fund and leadership changes point to strategic growth ahead, while technical indicators suggest the price could rise soon. With growing interest from institutional investors, the big question is whether CEO Mitchell Demeter can successfully position Sonic as a bridge between traditional finance and decentralized finance without losing its core DeFi strengths.

What is expected in the development of S?

Sonic’s roadmap is focused on expanding its presence in traditional finance and growing its ecosystem through the end of 2025.

1. US Expansion (Q4 2025) – Launching a $50 million ETF and a $100 million investment program linked to NASDAQ.
2. Campaign Snapshot #2 (December 2025) – Distributing 2.5 million $S tokens as rewards to top contributors.
3. Institutional Partnerships (Ongoing) – Accelerating collaborations under new CEO Mitchell Demeter.
4. Fee Monetization Boost (2025) – Directing 90% of transaction fees to decentralized app (dApp) developers.

Deep Dive

1. US Expansion (Q4 2025)

Overview: A governance vote passed with overwhelming support (99.99%) to allocate $50 million for an ETF that tracks Sonic and $100 million for an investment vehicle connected to NASDAQ (source). Sonic USA LLC will be set up in New York to help bring Sonic into traditional finance markets.
What this means: This move should increase Sonic’s credibility with big financial institutions and bring more money into the network. However, there are still regulatory challenges and risks in making this happen smoothly.

2. Campaign Snapshot #2 (December 2025)

Overview: Sonic is running a six-month rewards campaign split into two parts, with 2.5 million $S tokens allocated for each snapshot. The second snapshot, planned for December 2025, will reward the most active members of the Sonic community (source).
What this means: This encourages more participation and activity in the network. However, since rewards are concentrated among top contributors, there might be some selling pressure right after the rewards are given out.

3. Institutional Partnerships (Ongoing)

Overview: Mitchell Demeter, the new CEO, is focused on building stronger relationships with institutional investors. He brings experience in connecting cryptocurrency projects with traditional finance firms (source).
What this means: This is positive for Sonic’s long-term growth, but success depends on creating practical solutions that large companies can use.

4. Fee Monetization Boost (2025)

Overview: Sonic plans to increase the share of transaction fees that go to dApp developers, aiming for 90% of fees to support them through its FeeM model (source).
What this means: This should help keep developers motivated and encourage innovation within the Sonic ecosystem. However, it relies on steady user activity to generate enough fees.

Conclusion

Sonic’s roadmap is clearly aimed at gaining a foothold in traditional finance while rewarding developers and growing its community. The biggest challenges will be navigating regulatory hurdles and executing these plans on time. With $S down 64% compared to last year, these initiatives will be critical to reigniting interest and momentum in the network.

What updates are there in the S code base?

Sonic’s latest software updates focus on improving incentives for developers and upgrading the network’s infrastructure.

1. Fee Monetization Upgrade (September 6, 2025) – Now, 90% of transaction fees go directly to app developers, encouraging more innovation.
2. Trustless Real-World Asset (RWA) Oracles (September 6, 2025) – Integration with DIA’s oracle system supports over 1,000 real-world assets like commodities and stocks.
3. Token Burn Mechanism (September 6, 2025) – New rules to burn tokens help reduce inflation as the network grows.

Deep Dive

1. Fee Monetization Upgrade (September 6, 2025)

What’s new? Sonic’s Fee Monetization model now gives 90% of transaction fees to app developers, up from 80%. The remaining 10% is split between burning 5% of tokens and giving 5% to network validators. This change applies to all existing decentralized apps (dApps) on Sonic.
Why it matters: This update is positive for Sonic because it rewards developers who build popular apps, encouraging more creativity and keeping developers engaged. For example, a project generating $1 million in fees could now earn $900,000 annually, helping create a sustainable ecosystem. (Source)

2. Trustless RWA Oracles (September 6, 2025)

What’s new? Sonic has integrated DIA’s oracle technology, which provides reliable, decentralized price data for over 1,000 real-world assets, including tokenized commodities, stocks, and bonds.
Why it matters: This expansion opens Sonic to traditional financial markets (TradFi), making it easier to tokenize and trade regulated assets. While this is a promising development, its success depends on how many institutions adopt the platform. (Source)

3. Token Burn Mechanism (September 6, 2025)

What’s new? A new governance-approved system burns tokens dynamically:

• 5% of tokens from builder (developer) transactions are burned
• 50% of tokens from non-builder transactions are burned
  Why it matters: Burning tokens reduces the total supply, which can help increase the value of remaining tokens over time. This is a positive long-term move for Sonic’s token economy. However, there is still short-term selling pressure due to monthly token unlocks from airdrops (about 30 million $S tokens). (Source)

Conclusion

Sonic’s recent updates focus on rewarding developers and integrating real-world assets, supporting its growth in the U.S. market. While the fee monetization and token burn features strengthen Sonic’s token economy, the platform’s success will depend on continued growth of dApps and adoption by institutional players. The key question remains: will Sonic’s deflationary token mechanics be enough to balance out selling pressure from token unlocks?