Sonic (S), formerly known as Fantom (FTM), is showing strong signs of momentum as it hovers around the $0.55 mark following a robust 15% surge the previous day. This renewed price action coincides with a series of bullish on-chain developments, including record-breaking Total Value Locked (TVL), rising open interest, and growing stablecoin market capitalization. These metrics collectively suggest increasing confidence and adoption within the Sonic ecosystem, positioning the asset for a potential rally in the near term.
Record-Breaking Total Value Locked Signals Strong Ecosystem Growth
According to data from DefiLlama, Sonic’s TVL has surged to an all-time high of $1.54 billion. This milestone is more than just a number—it reflects real user engagement and trust in the platform’s DeFi protocols. When TVL rises, it typically means that more investors are depositing assets into decentralized applications (dApps) built on the network, whether for lending, staking, or yield farming.
A growing TVL often precedes price appreciation, as increased capital inflow enhances network security, boosts validator incentives, and strengthens the token’s utility. In Sonic’s case, this surge in locked value aligns with broader efforts to enhance scalability and interoperability across blockchain ecosystems, making it an attractive destination for developers and users alike.
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Rising Chain Fees and Stablecoin Adoption Indicate Growing Network Usage
Beyond TVL, another critical indicator of network health is chain fee revenue. On Thursday, Sonic generated $37,750 in transaction fees, marking a new all-time high. This uptick in fee collection points to heightened on-chain activity—more transactions, smart contract executions, and interactions with dApps.
Additionally, the stablecoin market cap on the Sonic chain has climbed steadily since mid-April and now stands at $538.20 million. This growth is particularly significant because stablecoins are often used as gateways for entering and exiting crypto positions. A rising stablecoin supply suggests that traders are positioning themselves for potential upside, either by preparing to invest in native assets or by facilitating seamless cross-protocol transactions.
Both metrics—fee revenue and stablecoin circulation—are strong leading indicators of increased network demand and long-term sustainability.
Open Interest Surge Hints at Strong Trader Confidence
Futures market data from Coinglass reveals that Sonic’s open interest (OI) jumped from $94.22 million to $140.32 million within 24 hours—a dramatic increase that signals fresh capital entering the market. Open interest represents the total number of outstanding derivative contracts, and a rising OI during a price uptrend typically indicates new buying pressure rather than short covering.
This influx of leveraged positions suggests that traders are not only optimistic but are backing their convictions with capital. While high leverage can amplify volatility, sustained growth in OI without a price reversal often confirms bullish momentum.
Technical Outlook: Can Sonic Break Above $0.61?
From a technical perspective, Sonic recently broke above its key daily resistance level at $0.55, fueling its 15% rally. Although price has pulled back slightly, holding above this level remains critical for continued bullish momentum.
If $0.55 holds as support**, the next resistance target lies at **$0.61. A confirmed close above this level could open the door to further gains toward **$0.68**, which coincides with the 50% Fibonacci retracement level derived from the February high ($0.99) and April low ($0.37). This retracement level is historically significant, often acting as a psychological and technical inflection point.
Key Technical Indicators Signal Bullish Momentum
- The Relative Strength Index (RSI) on the daily chart sits at 57, comfortably above the neutral 50 threshold, indicating sustained buying pressure.
- The MACD indicator delivered a bullish crossover last week, reinforcing the shift in momentum and generating a strong buy signal.
These technical signals, combined with fundamental on-chain strength, create a compelling case for further upside—provided support at $0.55 remains intact.
However, a failure to defend $0.55 could trigger a retest of the previous low near **$0.46**, potentially shaking short-term confidence. Traders should monitor volume and order book depth closely for early warning signs.
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Frequently Asked Questions (FAQ)
What is driving Sonic’s recent price increase?
Sonic’s price rally is being fueled by a combination of strong on-chain fundamentals—record TVL, rising chain fees, growing stablecoin adoption—and increased futures market participation. These factors reflect growing confidence in the network’s utility and long-term potential.
Is Sonic’s high TVL sustainable?
Sustainability depends on continued innovation and user retention. However, Sonic’s focus on scalable DeFi infrastructure and cross-chain integration positions it well to maintain high TVL levels if development momentum continues.
What does rising open interest mean for Sonic’s price?
Rising open interest during an uptrend typically indicates new money entering the market, which can drive further price increases. However, it also increases short-term volatility, especially if leveraged positions are liquidated during pullbacks.
How important is the $0.55 support level?
The $0.55 level is critical. It acted as resistance before the breakout and is now expected to serve as support. Losing this level could invalidate the current bullish structure and lead to deeper corrections.
What are the next key resistance levels for Sonic?
After $0.61, the next major resistance is at **$0.68, followed by the 61.8% Fibonacci retracement near $0.75**. Breaking these levels could attract institutional interest and trigger wider market participation.
Could macroeconomic factors affect Sonic’s rally?
Yes. Broader crypto market trends, regulatory developments, and Bitcoin’s price action can influence investor sentiment. However, Sonic’s strong on-chain metrics may help it outperform during favorable market conditions.
Final Thoughts: Momentum Builds Around Sonic
Sonic is emerging as one of the most compelling narratives in the current crypto cycle. Its rebranding from Fantom has been accompanied by tangible improvements in network performance and ecosystem growth. With TVL, fees, stablecoin usage, and open interest all hitting record highs, the foundation for a sustained rally appears solid.
Technical indicators further support this view, with both RSI and MACD confirming bullish momentum. The immediate focus remains on whether $0.55 holds as support—a successful defense could propel S toward $0.61 and beyond.
For investors and traders monitoring emerging blockchain ecosystems, Sonic presents a rare convergence of technical strength and fundamental growth.
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