Why did the price of S go up?
Sonic (S) increased by 4.71% in the last 24 hours, outperforming the overall crypto market, which rose 4.44%. This growth is driven by a shift toward altcoins, liquidity support from exchanges, and an upcoming token swap event.
- Altcoin Season Momentum – A broad move into altcoins is helping Sonic gain traction.
- Bitvavo Token Swap Preparation – The exchange is getting ready to convert Fantom (FTM) tokens to Sonic (S), boosting investor confidence.
- Institutional Fund Support – A $25 million fund is encouraging developer activity in the Sonic ecosystem.
Deep Dive
1. Altcoin Rotation (Positive Impact)
Overview:
Sonic’s recent price increase matches a wider trend where traders are moving their investments into altcoins with strong growth potential. The Altcoin Season Index from CoinMarketCap rose 8% in 24 hours, showing increased risk appetite despite overall market caution (Fear Index at 30).
What this means:
Sonic’s high turnover ratio (0.11) indicates that trading volume is effectively supporting price gains. A recent $1 million trading and staking campaign focusing on key trading pairs like S/USDC has sparked more interest from traders.
What to watch:
Keep an eye on daily trading volume staying above $50 million and Bitcoin’s market dominance remaining below 59%.
2. Bitvavo Token Swap Support (Positive Impact)
Overview:
Bitvavo, a European crypto exchange, announced it will automatically convert Fantom (FTM) tokens to Sonic (S) at a 1:1 ratio by January 17, 2025. After October 10, 2025, FTM deposits and trading will stop on the platform.
What this means:
This swap reduces selling pressure from FTM holders and improves Sonic’s liquidity in European markets. Bitvavo’s recent addition of Dubai USDC deposits also strengthens Sonic’s position as an accessible option for institutional investors.
What to watch:
Look for trading opportunities between FTM and S during the swap period and new exchange listings after the swap.
3. Ecosystem Fund Momentum (Mixed Impact)
Overview:
CMCC Global launched a $25 million “Resonance” fund on September 30 to support Sonic’s ecosystem. So far, 400,000 S tokens have been allocated to projects like Silo Finance, with partnerships including Chainlink CCIP.
What this means:
The fund initially caused a 7% price jump, but its long-term success depends on how widely decentralized apps (dApps) built on Sonic are adopted. The Fee Monetization (FeeM) model, which lets developers keep 90% of app fees, could encourage growth but might also increase token supply through grants.
Conclusion
Sonic’s recent gains reflect strong support from exchanges and the current altcoin market trend. However, it faces resistance around $0.18 to $0.20, with the price down 51% year-to-date. The upcoming FTM token swap and institutional funding add credibility, but watch for potential profit-taking if daily volume falls below $40 million.
Key point to watch: Will Sonic stay above its 20-day simple moving average (SMA) of $0.175 after the Bitvavo swap is complete?
What could affect the price of S?
Sonic’s price is currently caught between growing interest from big investors and concerns about token supply increasing too much.
- Institutional Growth – Plans for a U.S. ETF and Nasdaq PIPE project could boost demand.
- Fee Monetization Success – Over $2 million earned by developers through app fees is helping the network grow.
- Supply Increase – A 14% rise in circulating tokens from a $200 million issuance could put downward pressure on price.
Deep Dive
1. U.S. Traditional Finance Integration (Mixed Impact)
Overview:
Sonic’s governance approved using $150 million worth of S tokens to support a U.S. ETF, a Nasdaq-listed treasury project (PIPE), and setting up Sonic USA. This aims to bring in institutional investors but requires creating 472 million new S tokens, increasing supply by 14%.
What this means:
While getting ETF approval could attract mainstream investors (CoinDesk), the immediate increase in token supply may reduce the token’s value. Past examples show that when new tokens are unlocked, prices often drop (Sonic’s price fell 69% since January 2025).
2. Fee Monetization Growth (Positive)
Overview:
Developers receive 90% of fees collected from apps through FeeM, with over $2 million in S tokens distributed since launch. New partnerships like Silo Finance and Ammalgam are increasing decentralized finance (DeFi) activity.
What this means:
Sharing real revenue encourages developers and users to stay in the Sonic ecosystem. For example, SegaSwap’s trading volume jumped 70% after receiving funding. If total value locked (TVL) recovers from its low of $367 million (The Defiant), the fees burned (5-50% per transaction) could help reduce token inflation.
3. Technical & Market Sentiment (Neutral)
Overview:
Sonic’s price at $0.18 is below key moving averages (7-day at $0.186, 200-day at $0.369), but the Relative Strength Index (RSI) at 30 suggests the token is oversold. Social media mentions increased 78% after hiring new CEO Mitchell Demeter.
What this means:
Although price momentum is weak, signs like rising social interest and oversold conditions hint at potential speculative buying. The $0.257 level (23.6% Fibonacci retracement) is an important resistance point for any price recovery.
Conclusion
Sonic’s future price depends on whether institutional demand from ETF and traditional finance efforts can outpace the negative effects of increased token supply. Technical indicators show the market is tired, but strong network fundamentals like FeeM and 400,000 transactions per second offer long-term potential. Key question: Will Sonic secure ETF approval in the U.S. before Q1 2026, or will token dilution continue to weigh on the price?
What are people saying about S?
The Sonic (S) community is caught between frustration and hope, balancing disappointment over airdrops with confidence in the technology’s long-term potential. Here’s what’s happening right now:
- Meme-driven price optimism clashes with weak token economics.
- Airdrop fatigue meets new reward programs.
- Technical improvements face challenges from declining total value locked (TVL) and sluggish price movement.
Deep Dive
1. @SpacePoernchen: “Pump $S to $10” – Bullish
“Let’s make Sonic Great Again and pump it to $10”
– Sept 16, 2025 · 1.23M views
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What this means: Retail investors are pushing for a big price jump—from the current $0.18 to $10—even though Sonic has lost 77% of its value over the past year. This reflects hype-driven rallies but lacks strong fundamentals to back it up.
2. @SonicLabs: Airdrop Season 2 Launch – Mixed
“30M $S via Sonic Gems – 50% vested over 90 days”
– July 23, 2025 · 854K views
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What this means: New airdrops are designed to increase user engagement, but the fact that half of the tokens are locked for 90 days could lead to selling pressure once they become available. Meanwhile, Sonic’s TVL has dropped 67% since May (The Defiant).
3. @theKriptolik: Technical Breakout Signal – Bullish
“Trend reversal confirmed – Altcoin portfolio pick” (Translated from Turkish)
– Sept 13, 2025 · 287K views
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What this means: Traders have spotted a breakout on Sonic’s 4-hour price chart above the $0.18 resistance level. However, the Relative Strength Index (RSI) at 62 suggests there’s limited room for upward movement before the token becomes overbought.
4. @Lexibtceth: Institutional Infrastructure Praise – Bullish
“400k TPS EVM chain – Underrated institutional play”
– Sept 7, 2025 · 1.1M views
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What this means: Sonic’s technology—offering fast transaction finality and a FeeM model—is gaining attention from developers and institutions. However, the market value ($519 million) is still behind the total value locked ($367 million), indicating a disconnect between price and actual usage.
5. Coinbase: Listing Roadmap Inclusion – Neutral
“$S added to Coinbase roadmap – Full network integration pending” (NullTX)
– June 14, 2025
What this means: Being added to Coinbase’s listing roadmap could open doors for institutional investors, but the timeline for full integration is still uncertain. Historically, Coinbase listings tend to boost token prices by 20-50% after confirmation.
Conclusion
The outlook for Sonic is mixed. There’s optimism around its technology and partnerships (like 400k TPS and potential Coinbase listing), but concerns remain about token economics, including oversupply from airdrops and a 38% monthly price decline. Keep an eye on the gap between TVL and price: if Sonic’s $367 million TVL climbs back toward its May peak of $1.1 billion while the price remains low, it could signal that investors are accumulating before a potential rebound. The key question is whether the market will start valuing Sonic more as a strong infrastructure platform rather than just a token.
What is the latest news about S?
Sonic is gaining momentum with new exchange support and fresh funding, while preparing for a token swap. Here’s the latest update:
- Bitvavo Enables FTM→S Swap (October 13, 2025) – Fantom (FTM) holders on Bitvavo will be automatically converted to Sonic (S) ahead of Sonic’s full trading launch.
- Altcoin Season Highlights (October 7, 2025) – Sonic’s price jumped 10% thanks to trading incentives and expanded liquidity on its platform.
- $25 Million Ecosystem Fund Announced (September 30, 2025) – CMCC Global’s “Resonance” fund aims to boost Sonic’s decentralized finance (DeFi) and consumer applications.
In-Depth Look
1. Bitvavo Enables FTM→S Swap (October 13, 2025)
What’s happening: Bitvavo, a popular crypto exchange, will automatically convert Fantom (FTM) tokens to Sonic (S) at a 1:1 rate by January 17, 2025. Deposits and trading of FTM will stop on January 10. This follows Sonic’s rebranding from Fantom, highlighting its upgraded blockchain technology that supports up to 10,000 transactions per second and shares up to 90% of app fees with developers.
Why it matters: This automatic swap makes it easier for Fantom users to switch to Sonic, potentially increasing Sonic’s trading activity and network validators. However, some users might sell their new Sonic tokens right after the swap, which could cause short-term price drops. (Bitvavo)
2. Altcoin Season Highlights (October 7, 2025)
What’s happening: Sonic’s price rose 10% in one day during a broader rally in alternative cryptocurrencies. This was supported by a $1 million staking campaign and increased liquidity on Sonic’s Virtual Machine (SVM) platform. The token’s turnover ratio of 0.11 indicates moderate trading activity, and price charts show Sonic holding steady above $0.17.
Why it matters: These incentives are attracting traders and investors, but keeping the momentum will depend on ongoing user engagement after the campaign ends. Growth in Sonic’s SVM could bring more decentralized finance projects, though it faces tough competition from other platforms like Stacks and Bittensor. (CryptoNews)
3. $25 Million Ecosystem Fund Announced (September 30, 2025)
What’s happening: CMCC Global launched a $25 million fund called “Resonance” to support Sonic’s ecosystem, focusing on projects that use Fee Monetization (FeeM) models—where developers earn a share of app fees. This announcement caused trading volume to spike 70% to $126 million, with Sonic’s price briefly reaching $0.26.
Why it matters: Institutional investment shows confidence in Sonic’s approach to rewarding developers. However, the token has dropped nearly 39% over the past month, reflecting doubts about short-term returns. The success of this fund depends on attracting valuable decentralized apps that can benefit from FeeM’s revenue-sharing system. (Yahoo Finance)
Conclusion
Sonic is making strategic moves to bring in Fantom’s existing users and attract DeFi developers, but its token price remains volatile. The key questions are whether FeeM’s developer rewards and the scalability of Sonic’s Virtual Machine can outpace competition from other blockchains. Keep an eye on trading volume after the Bitvavo swap and how quickly FeeM gains adoption for signs of Sonic’s future direction.
What is expected in the development of S?
Sonic’s roadmap is centered on growing its ecosystem, attracting institutional investors, and making key technical improvements.
- US Expansion (Q4 2025) – Plans include a $50 million allocation for an ETF and $100 million for a NASDAQ PIPE deal.
- Sonic Gems Incentives (Q4 2025) – Introducing new $S token rewards for developers and users.
- CMCC Global Fund Deployment (Q4 2025) – A $25 million fund to support DeFi projects and consumer apps.
Deep Dive
1. US Expansion (Q4 2025)
Overview:
On September 6, 2025, a governance vote approved allocating $50 million toward a U.S.-based ETF initiative, $100 million for a NASDAQ PIPE (Private Investment in Public Equity) deal, and 150 million $S tokens to launch Sonic USA. This effort aims to connect traditional finance (TradFi) with cryptocurrency liquidity.
What this means:
This move could attract large institutional investors through ETF exposure, which is positive for adoption. However, regulatory challenges could delay progress, posing some risks.
2. Sonic Gems Incentives (Q4 2025)
Overview:
According to a July 24, 2025 AMA, Sonic Gems will distribute 30 million $S tokens to apps that increase user engagement. Unlike Points, which reward users, Gems are given by developers to encourage innovation within the ecosystem.
What this means:
This is good news for developer participation and the variety of decentralized apps (dApps). On the downside, if teams sell their tokens quickly, it could cause short-term price pressure.
3. CMCC Global Fund Deployment (Q4 2025)
Overview:
A $25 million ecosystem fund launched on September 30, 2025, will support DeFi protocols and consumer applications. Projects receiving funds must use Fee Monetization (FeeM), where 90% of fees go directly to the dApps.
What this means:
This strategy supports long-term value and increases network usefulness. Its success depends on attracting talented developers and quality projects.
Conclusion
Sonic’s roadmap combines efforts to engage big institutions (through ETF and PIPE deals) with grassroots incentives (like Gems and the ecosystem fund), aiming to strengthen its position as a fast Ethereum Virtual Machine (EVM) compatible blockchain. However, risks related to execution and overall market sentiment (Fear Index: 27) could slow momentum. Will Sonic’s focus on regulatory compliance and liquidity lead to sustained price growth?
What updates are there in the S code base?
Sonic’s latest software updates focus on making the platform more scalable and fully compatible with Ethereum.
- Ethereum Pectra Support (August 12, 2025) – Testnet 2.1 now works with Ethereum’s upcoming major upgrade.
- Covalent Integration (October 8, 2025) – Developers get instant access to live blockchain data.
- Bird Layer Bridge Launch (September 3, 2025) – Fast, low-cost transfers between multiple blockchains.
In-Depth Look
1. Ethereum Pectra Support (August 12, 2025)
What’s new: Sonic’s Testnet 2.1 update is now compatible with Ethereum’s Pectra upgrade. This means Sonic can better connect and work alongside Ethereum’s network improvements.
The update helps developers test new features focused on faster transactions and smarter contract execution. It also supports Ethereum’s plans for easier account management and Layer-2 solutions, which help scale the network.
Why it matters: This is a positive development for Sonic. It makes it easier for projects built on Ethereum to move or expand to Sonic, thanks to smoother compatibility and faster performance. This could lead to more activity on the Sonic network. (Source)
2. Covalent Integration (October 8, 2025)
What’s new: Sonic teamed up with Covalent to provide developers with near-instant access to blockchain data. This removes delays caused by traditional data request methods.
Developers can now quickly retrieve both past and current blockchain information, making it easier to analyze data and improve decentralized apps (dApps). Covalent supports multiple blockchain types, increasing Sonic’s flexibility.
Why it matters: While this update doesn’t directly change Sonic’s core features, it improves the developer experience. Faster data access can speed up app development, but the real impact depends on how many developers take advantage of it. (Source)
3. Bird Layer Bridge Launch (September 3, 2025)
What’s new: Sonic introduced the Bird Layer Bridge, allowing users to transfer assets quickly between over 17 different blockchains.
This bridge cuts transfer times down to seconds and lowers fees by 40% compared to older methods. It uses advanced zero-knowledge proofs to ensure secure and trustless transactions, aligning with Sonic’s focus on security.
Why it matters: This is a strong positive for Sonic. Easy and affordable cross-chain transfers attract more users and liquidity from other blockchain networks. This could increase the total value locked (TVL) and transaction volume on Sonic. (Source)
Conclusion
Sonic’s recent updates emphasize compatibility with Ethereum, better data access for developers, and smooth cross-chain transfers—key factors for growing and scaling the platform. While Ethereum Pectra support helps attract developers, the Covalent and Bird Layer integrations remove practical obstacles for building and using apps on Sonic. The big question remains: will these improvements lead to noticeable growth in Sonic’s network activity by the end of 2025?