At the beginning of 2025, optimism in the U.S. stock market propelled the S&P 500 to new highs, while the cryptocurrency market faced downward pressure and volatility, particularly in the meme coin market. Against this backdrop, Sonic ($S) stood out with price increases and technological upgrades, becoming a focus of the market. This article will delve into the fundamental factors behind its countertrend rise.

1. $S Price Performance

• Price Increase: Despite the overall downturn in the cryptocurrency market, the price of $S has remained stable with upward movements, demonstrating strong market confidence in it.

• Technological Upgrades: The transition from Fantom to Sonic not only enhanced performance but also optimized storage and virtual machine systems, further bolstering scalability.

2. Key Features

• High Performance: Capable of processing over 10,000 transactions per second, suitable for high-demand applications.

• Interoperability: Seamless interaction between different blockchains.

• Developer Incentives: Attracting developers and fostering innovation.

1. On-Chain Internal Optimization

• Storage Upgrade: The Carmen project adopted a new file-based StateDB to optimize storage efficiency.

• Virtual Machine Upgrade: The Tosca project introduced FVM, improving transaction speed and reducing storage occupancy.

• Bottleneck Analysis: The Aida project identified storage as the primary bottleneck and targeted optimizations were made.

2. Off-Chain Optimization

• Sonic Gateway: A decentralized cross-chain bridge enhancing interoperability and eliminating custody risks.

  • Core Features: Secure transfer of ERC-20 assets, fast transfer experience, built-in fault protection mechanisms.

  • User Benefits: Access to native assets without relying on wrapped assets.

1. TVL Growth

• Data Performance: According to DefiLlama, Sonic's TVL has grown by 180% in the past month, ranking 16th overall.

• Market Confidence: The significant growth in TVL reflects market confidence and a significant influx of funds.

2. Ecosystem Expansion

• Fund Inflows: Continuous market fund inflows into the Sonic ecosystem have strengthened its competitive position in the industry.

• User Engagement: The momentum of platform development and increased user engagement have accelerated ecological growth.

1. Transaction Volume Growth

• Peak Transaction Volume: On January 13, 2025, a peak of 975,252 transactions was reached, indicating market activity.

• Volatile Growth: Transaction volume remained relatively high with fluctuations, increasing market activity.

2. Gas Usage

• Active Growth Period: Experienced active growth from December to January, peaking in mid-January.

• Maintained High Levels: From February onwards, Gas usage fluctuated but remained at relatively high levels.

3. Price Support

• Suppressed by Moving Averages: Since the beginning of the year, the price of $S has been suppressed by moving averages, failing to fully reflect fundamental improvements.

• Recovery Trend: Starting on February 8, the price ended its downward trend and began to recover, but it is still far below its historical high.

• Future Movement: If it can maintain above the support level of $0.57 and steadily rise, the subsequent trend is expected to strengthen further.

Since its renaming from Fantom, Sonic has demonstrated robust development momentum. TVL has grown significantly, on-chain data activity has increased, and the ecosystem has expanded rapidly. Although the price of $S has not fully reflected positive fundamentals, as market attention increases and technology continues to improve, the price is expected to rise further. Investors should closely monitor market dynamics and on-chain data to seize potential upside opportunities.

At the beginning of 2025, optimism in the U.S. stock market propelled the S&P 500 to new highs, while the cryptocurrency market faced downward pressure and volatility, particularly in the meme coin market. Against this backdrop, Sonic ($S) stood out with price increases and technological upgrades, becoming a focus of the market. This article will delve into the fundamental factors behind its countertrend rise.

1. $S Price Performance

• Price Increase: Despite the overall downturn in the cryptocurrency market, the price of $S has remained stable with upward movements, demonstrating strong market confidence in it.

• Technological Upgrades: The transition from Fantom to Sonic not only enhanced performance but also optimized storage and virtual machine systems, further bolstering scalability.

2. Key Features

• High Performance: Capable of processing over 10,000 transactions per second, suitable for high-demand applications.

• Interoperability: Seamless interaction between different blockchains.

• Developer Incentives: Attracting developers and fostering innovation.

1. On-Chain Internal Optimization

• Storage Upgrade: The Carmen project adopted a new file-based StateDB to optimize storage efficiency.

• Virtual Machine Upgrade: The Tosca project introduced FVM, improving transaction speed and reducing storage occupancy.

• Bottleneck Analysis: The Aida project identified storage as the primary bottleneck and targeted optimizations were made.

2. Off-Chain Optimization

• Sonic Gateway: A decentralized cross-chain bridge enhancing interoperability and eliminating custody risks.

  • Core Features: Secure transfer of ERC-20 assets, fast transfer experience, built-in fault protection mechanisms.

  • User Benefits: Access to native assets without relying on wrapped assets.

1. TVL Growth

• Data Performance: According to DefiLlama, Sonic's TVL has grown by 180% in the past month, ranking 16th overall.

• Market Confidence: The significant growth in TVL reflects market confidence and a significant influx of funds.

2. Ecosystem Expansion

• Fund Inflows: Continuous market fund inflows into the Sonic ecosystem have strengthened its competitive position in the industry.

• User Engagement: The momentum of platform development and increased user engagement have accelerated ecological growth.

1. Transaction Volume Growth

• Peak Transaction Volume: On January 13, 2025, a peak of 975,252 transactions was reached, indicating market activity.

• Volatile Growth: Transaction volume remained relatively high with fluctuations, increasing market activity.

2. Gas Usage

• Active Growth Period: Experienced active growth from December to January, peaking in mid-January.

• Maintained High Levels: From February onwards, Gas usage fluctuated but remained at relatively high levels.

3. Price Support

• Suppressed by Moving Averages: Since the beginning of the year, the price of $S has been suppressed by moving averages, failing to fully reflect fundamental improvements.

• Recovery Trend: Starting on February 8, the price ended its downward trend and began to recover, but it is still far below its historical high.

• Future Movement: If it can maintain above the support level of $0.57 and steadily rise, the subsequent trend is expected to strengthen further.

Since its renaming from Fantom, Sonic has demonstrated robust development momentum. TVL has grown significantly, on-chain data activity has increased, and the ecosystem has expanded rapidly. Although the price of $S has not fully reflected positive fundamentals, as market attention increases and technology continues to improve, the price is expected to rise further. Investors should closely monitor market dynamics and on-chain data to seize potential upside opportunities.