Why did the price of S go up?

Sonic (S) increased by 1.46% in the last 24 hours, reaching $0.177, while the overall crypto market dropped by 1.92%. Although Sonic is still down 35.89% over the past week, three main factors contributed to today’s rise:

1. Altcoin Rotation & Incentives – A $1 million staking and trading campaign, along with the launch of USDC deposits and withdrawals for Dubai users on October 7, sparked renewed interest.
2. Technical Oversold Bounce – The Relative Strength Index (RSI) hit 17.75 over 7 days, indicating the coin was heavily undervalued, which encouraged short-term buying.
3. Leadership Momentum – New CEO Mitchell Demeter’s expansion plans announced on September 29 continue to build confidence among institutional investors.

Deep Dive

1. Altcoin Rotation & Incentives (Positive Impact)

Overview: Sonic gained attention as part of a broader shift toward altcoins, supported by a $1 million liquidity campaign focused on key trading pairs and the introduction of USDC deposits and withdrawals for users in Dubai (Cryptonews).

What this means:

• These incentives likely increased trading activity, with Sonic’s 24-hour trading volume steady at $260 million (a slight 4.4% decrease from the previous day).
• The USDC integration in Dubai makes it easier for investors in the Middle East and North Africa (MENA) region to access Sonic, an area where cryptocurrency adoption is growing.

What to watch: Look for sustained trading volume above $300 million and growth in total value locked (TVL) on Sonic’s decentralized finance (DeFi) platforms.

2. Technical Oversold Bounce (Mixed Impact)

Overview: Sonic’s 7-day RSI dropped to 17.75, signaling it was deeply oversold. The price also bounced back from a key support level around $0.15, based on Fibonacci retracement levels.

What this means:

• Short-term traders took advantage of the oversold condition to buy, but longer-term price averages, like the 30-day simple moving average (SMA) at $0.27, still act as strong resistance.
• The MACD indicator shows bearish momentum is easing but hasn’t turned positive yet.

What to watch: A price close above the 23.6% Fibonacci retracement level at $0.269 would suggest a stronger recovery is possible.

3. Leadership & Institutional Strategy (Positive Impact)

Overview: Since Mitchell Demeter became CEO on September 29, Sonic has announced a $150 million U.S. expansion plan, including ETF initiatives and partnerships with Nasdaq, which is gradually restoring interest from institutional investors (Coinspeaker).

What this means:

• Demeter’s background as a Bitcoin ATM pioneer suggests a focus on connecting traditional finance (TradFi) with crypto, which is important for Sonic’s liquidity and reputation.
• However, the 42% price drop over the past 30 days shows some investors remain cautious about how quickly these plans will be realized.

Conclusion

Sonic’s recent 24-hour gain is driven by a combination of short-term trading opportunities, targeted incentives, and cautious optimism about new leadership. To maintain this upward momentum, watch for continued trading volume and progress in U.S. institutional partnerships.

Key watch: Can Sonic break above $0.20 (about 13% higher than the current price) to challenge the current bearish trend?

What could affect the price of S?

Sonic is currently balancing between growing interest from big financial institutions and risks related to an increasing number of tokens in circulation.

1. Institutional Growth – Plans for a U.S. ETF and a Nasdaq-linked investment fund could bring in traditional financial investors (positive sign)
2. Ecosystem Incentives – A $25 million venture capital fund and a new fee-sharing model aim to encourage developers to build on Sonic (mixed results so far)
3. Token Supply Changes – A 14% increase in token supply from U.S. initiatives could dilute value, but new token-burning features may help reduce this impact (negative overall)

Deep Dive

1. Institutional Bridge (Positive Impact)

Overview: Sonic’s community overwhelmingly approved (99.99% vote) a U.S. expansion plan that includes launching a $50 million ETF and an investment vehicle linked to Nasdaq. This move also ties into Sonic’s planned integration with the U.S. Commerce Department’s blockchain data program in September 2025.

What this means: Regulated ETFs often create steady demand for the underlying assets. For example, Bitwise research shows that crypto ETFs typically see over $200 million in inflows during their first 90 days. However, the exact timeline for Sonic’s ETF launch is still uncertain, which introduces some risk.

2. Developer Economics (Mixed Impact)

Overview: CMCC Global has set up a $25 million “Resonance” fund to support DeFi developers building on Sonic. Additionally, Sonic’s FeeM system now directs 90% of protocol fees back to apps. Partnerships with projects like Silo Finance and ODX indicate growing ecosystem activity.

What this means: FeeM could motivate developers to create high-quality decentralized apps, similar to how Solana’s 2024 developer grants helped increase total value locked (TVL) by 58%. However, Sonic’s TVL has dropped 67% since May 2025 (The Defiant), so the ecosystem needs sustained growth to counteract selling pressure from the 190.5 million S tokens distributed via airdrops.

3. Supply Dynamics (Negative Impact)

Overview: The U.S. expansion resulted in minting 633.9 million new Sonic (S) tokens, increasing the total supply by 14%. At the same time, new burn mechanics destroy between 5% and 50% of transaction fees.

What this means: These burns could offset 30-40% of the new supply each year based on current daily trading volume of $295 million. Still, there’s short-term risk from inflation. For context, a similar token dilution event on Fantom before its rebrand led to a 22% price drop within 30 days.

Conclusion

Sonic’s future price depends on successfully attracting traditional financial investors while managing the risks of increased token supply. A price above $0.28 could indicate strong ETF-driven momentum, while falling below $0.17 might lead to faster declines. Keep an eye on FeeM adoption—aiming for over 50% of network fees captured by Q1 2026—as a key indicator of ecosystem health.

The big question: Can Sonic’s token burn rate keep up with selling pressure from the 150 million S tokens allocated to Sonic USA?

What are people saying about S?

The Sonic community is caught between excitement over airdrops and frustration with the token’s price struggles. Here’s what’s trending right now:

1. Airdrop excitement – Season 1 claims are ongoing, and Season 2 rewards are being introduced
2. Ecosystem growth – Total Value Locked (TVL) jumps 40% to $650 million, with new partnerships forming
3. Price debate – Some hope for a $10 surge, but the token has dropped 78% over the past year

Deep Dive

1. @SonicLabs: How the Airdrop Works

“About 30 million Sonic (S) tokens via Sonic Gems are now claimable – half vested, half available immediately.”
– @SonicLabs (288K followers · 1.2M impressions · July 25, 2025)
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What this means: This setup encourages users to stay engaged longer because half the tokens are locked for three months. It helps reduce quick sell-offs and rewards long-term holders.

2. @SantoXBT: Ecosystem Growth Update

“TVL hits $650 million, up 40% in just 24 hours – smart investors are chasing DeFi yields and airdrops.”
– @SantoXBT (91K followers · 430K impressions · August 31, 2025)
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What this means: While the sharp increase in TVL shows growing interest, it might be driven by short-term investors looking for quick gains rather than steady, organic growth.

3. @SpacePoernchen: Retail Investor Price Hopes

“Let’s make Sonic Great Again – pump it to $10!”
– @SpacePoernchen (6.2K followers · 18K impressions · September 16, 2025)
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What this means: This kind of optimistic price target (about 56 times the current $0.177 price) often appears when retail investors are desperate, signaling a possible market bottom or capitulation phase.

4. @sunthinh222: Technical Analysis Insight

“Double-bottom pattern forming – possible breakout to $0.38–$0.40.” (Translated from Vietnamese)
– @sunthinh222 (4.8K followers · 12K impressions · October 11, 2025)
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What this means: The technical indicators suggest a potential price reversal, but confirmation is needed. Key signals like RSI at 53.65 and MACD crossover require strong trading volume above $260 million daily to support a breakout.

Conclusion

The outlook for Sonic is mixed. Developers are optimistic, pointing to strong ecosystem growth (+40% TVL and new Covalent integration), but traders are facing tough conditions with a 78% drop over the past year. Keep an eye on the unlocking of the 30 million Sonic Gems (with the next batch locked until October 2025) and whether TVL can stay above $600 million after the airdrop period ends. The big question remains: can the incentive structure overcome the overall bearish market trend?

What is the latest news about S?

Sonic is gaining momentum in the altcoin market thanks to new incentives and leadership changes, even as it faces a tough overall market environment. Here’s the latest update:

1. Altcoin Rotation Boost (October 7, 2025) – Sonic’s price jumped 10% during altcoin season, helped by a $1 million trading campaign and the launch of USDC deposits and withdrawals in Dubai.
2. $25 Million Ecosystem Fund Launch (September 30, 2025) – CMCC Global introduced the “Resonance” fund, sparking a 70% increase in trading volume and positive technical signals.
3. New CEO Appointment (September 29, 2025) – Blockchain expert Mitchell Demeter took over as CEO, leading to a 5% price increase.

Deep Dive

1. Altcoin Rotation Boost (October 7, 2025)

Overview:
Sonic’s price rose 10% in one day as the altcoin market favored tokens with strong catalysts. This boost was driven by a $1 million trading and staking campaign focused on key trading pairs, along with the rollout of USDC deposit and withdrawal options in Dubai. Technical analysis shows Sonic holding steady above important support levels ($0.16–$0.18), with indicators confirming positive momentum.

What this means:
This is a positive sign for Sonic because targeted incentives and better liquidity can help maintain demand in the short term. However, the price over the past week is still down 36.7%, showing that sustained trading volume is needed to overcome broader market challenges. (CryptoNews)

2. $25 Million Ecosystem Fund Launch (September 30, 2025)

Overview:
CMCC Global launched a $25 million fund called “Resonance” to support decentralized finance (DeFi) and consumer applications built on Sonic. This announcement led to a 70% jump in daily trading volume ($126 million) and a 7% increase in price. The Relative Strength Index (RSI), a tool that measures buying and selling pressure, moved out of oversold territory, indicating renewed buyer interest.

What this means:
This development is somewhat positive because institutional support validates Sonic’s long-term potential. However, the fund’s success depends on how well the supported projects perform. Key resistance levels between $0.28 and $0.33 must be broken to confirm a sustained upward trend. (Yahoo Finance)

3. New CEO Appointment (September 29, 2025)

Overview:
Mitchell Demeter, who co-founded Canada’s first cryptocurrency exchange, was named Sonic’s new CEO. His appointment sparked a 5% price increase. Demeter plans to focus on expanding Sonic’s presence in the U.S. and building partnerships with institutional investors, aligning with Sonic’s approved $150 million growth plan that includes ETF initiatives and a NASDAQ PIPE offering.

What this means:
This is cautiously optimistic news because Demeter has experience bridging the gap between crypto and traditional finance. Still, Sonic’s 43% price drop over the past 30 days highlights the need for real institutional investment to change market sentiment. (Decrypt)

Conclusion

Sonic’s recent developments—new leadership, ecosystem funding, and altcoin market momentum—show strategic efforts to regain market traction. While technical indicators suggest some stabilization, the token’s 52% decline over the last 90 days reflects ongoing challenges in the broader economy. The big question remains: can Demeter’s vision and fresh capital attract the institutional interest needed to support a lasting recovery?

What is expected in the development of S?

Sonic is moving forward with several key updates:

1. More Exchange Listings (January 2025) – Over 12 centralized exchanges will list $S, replacing $FTM.
2. FTM-to-S Swap Deadline (March 18, 2025) – After this date, you can only convert $FTM to $S, not the other way around.
3. Fee Monetization Launch (Q2 2025) – Developers will earn 90% of fees generated by their apps on the network.
4. Institutional Growth (Q4 2025) – A $200 million push into U.S. traditional finance through ETFs and partnerships with Nasdaq.

In-Depth Look

1. More Exchange Listings (January 2025)

What’s happening: Starting January 2025, more than a dozen centralized exchanges (CEXs) will list Sonic’s $S token, replacing the older $FTM token (January '25 Newsletter). This will make it easier for traders to buy and sell $S.
Why it matters: Being listed on more exchanges usually means more people can trade the token, which can increase its popularity and liquidity. However, when tokens become available on many platforms, some holders might sell, which could temporarily lower the price.

2. FTM-to-S Swap Deadline (March 18, 2025)

What’s happening: After March 18, 2025, users will only be able to convert $FTM tokens into $S tokens, not the other way around (Mainnet Launch).
Why it matters: This change reduces the chance of $FTM holders selling their tokens back, which might help stabilize $S. However, some longtime Fantom users might feel left out. Expect more people to swap their tokens before the deadline.

3. Fee Monetization Launch (Q2 2025)

What’s happening: Sonic will introduce Fee Monetization (FeeM), allowing app developers to earn 90% of the fees their apps generate on the network. This is similar to how traditional web companies share revenue with creators (Mainnet Docs).
Why it matters: This is a big incentive for developers to build quality apps on Sonic, which can help the ecosystem grow. The challenge will be competing with other platforms like Ethereum’s Layer 2 solutions.

4. Institutional Growth (Q4 2025)

What’s happening: Sonic has approval for a $200 million initiative focused on U.S. traditional finance, including a $50 million allocation for ETFs and a $100 million reserve with Nasdaq (MEXC News).
Why it matters: This is a bold move to connect Sonic with mainstream finance. While regulatory hurdles could slow progress, success would make $S a key player bridging traditional finance and decentralized finance (DeFi).

Conclusion

Sonic’s roadmap combines technical improvements like Fee Monetization and expanded exchange listings with strategic moves into traditional finance. While new listings and developer rewards may boost short-term activity, the U.S. expansion could significantly change Sonic’s role in the market—if it navigates regulatory challenges successfully. How these regulations evolve will be crucial for Sonic’s future in blending traditional and decentralized finance.

What updates are there in the S code base?

Sonic’s latest updates focus on improving security, scalability, and tools for developers.

1. Trustless RWA Oracle Integration (September 2025) – Added DIA’s verifiable oracles for over 1,000 real-world assets.
2. AI-Powered Documentation Upgrade (January 2025) – Introduced an AI assistant to help with technical questions.
3. $2M Immunefi Bug Bounty (January 2025) – Launched a bug bounty program to boost security with up to $2 million rewards.

In-Depth Look

1. Trustless RWA Oracle Integration (September 2025)

What it is: Sonic now uses DIA’s oracle system to provide decentralized and reliable price data for real-world assets like commodities and tokenized securities. This is important for decentralized finance (DeFi) apps that need accurate off-chain information.

The system uses zero-knowledge proofs, a technology that verifies data without revealing sensitive details, reducing dependence on centralized data sources. Developers can access over 1,000 real-world asset datasets directly, making it easier to build applications in areas like trade finance and real estate.

Why it matters: This upgrade is positive for Sonic because it opens up new opportunities for institutional DeFi applications. More reliable data can increase trust and attract developers focused on real-world asset projects.
(Source)

2. AI-Powered Documentation Upgrade (January 2025)

What it is: Sonic’s documentation now features an AI chatbot that answers technical questions, generates code examples, and helps troubleshoot common issues instantly.

The AI pulls information from GitHub updates, whitepapers, and community discussions to provide relevant and easy-to-understand answers. Developers can also highlight complex topics, like how consensus mechanisms work, to get simplified explanations.

Why it matters: This change is neutral in terms of Sonic’s network performance but improves the experience for new developers. Easier onboarding could help the Sonic ecosystem grow over time.
(Source)

3. $2M Immunefi Bug Bounty (January 2025)

What it is: Sonic Labs teamed up with Immunefi to launch a bug bounty program offering up to $2 million in rewards for finding critical security issues in Sonic’s blockchain and cross-chain bridge.

The focus is on fixing vulnerabilities in smart contracts, validator nodes, and bridge security. In the first quarter of 2025, over 400 reports were reviewed, and 12 serious issues were fixed.

Why it matters: This is a strong positive for Sonic because it shows a commitment to security, reducing the risk of hacks and making the network safer for institutional investors. However, the need for ongoing audits highlights the challenges of maintaining a fast and secure blockchain.
(Source)

Conclusion

Sonic’s recent updates highlight its focus on building enterprise-ready infrastructure (real-world assets), making development easier (AI documentation), and strengthening security (bug bounty program). While these improvements support Sonic’s goal of being a blockchain friendly to traditional finance, the token has still dropped 51% year-to-date, reflecting wider market doubts about layer-1 blockchains. The key question is whether these new features will help Sonic overcome broader market challenges in the coming months.