Sonic (S) which used to be known as Fantom took the number two spot among top 100 cryptocurrencies during this week when its price rose by 25%. Sonic (S) achieved its highest weekly price of $0.5882 on Thursday which exceeded its January 31st level by 75% while surpassing all 2022 lows.
A report from DeFi Llama demonstrates that ecosystem expansion powered the rally. Since January the value locked in the Sonic network climbed to $400 million marking a major growth from its initial $27.5 million start of the year.
Sonic Ecosystem Sees Surge
The assets under Avalon Labs management reached $124 million which was part of broader growth among Shadow Exchange and SwapX and ICHI platforms in the ecosystem. Developer adoption of the network along with their increasing interest are evident from this recent surge.
The attractive staking yield of Sonic acts as one factor that has boosted its price value. The token ranks higher than Ethereum and Sui when it comes to passive income profitability as its staking return amounts to 5.98%.
The token shows significant advancements with its involvement in the meme coin sector. Through their ‘meme mania’ campaign Sonic Network launched several meme tokens namely Goggles, TinHatCat and Indi which achieved market capitalization exceeding $3 million each which attracted investors.
Technical analysis of token price history indicates potential price rises in the future. It’s price had reached its lowest point at $0.310 back in February before it rose to maintain value at $0.5500 and cross above its 50-period moving average.
The market development shows an inverse head-and-shoulders pattern which signals an imminent market breakout. A price correction to $0.4325 appears possible shortly but Sonic could increase to $0.8480 if it surpasses the $0.5878 neckline for a total 96% gain. A price movement under $0.4325 will validate the current bearish market outlook.
The DeFi sector of the Token continues to demonstrate success as Silo Finance demonstrated a 20% growth in assets which now stands at $133.7 million during the previous week. The recent surge indicates that users are actively using and participating in Sonic’s platform and shows no signs of slowing down its token’s adoption.
