Sonic Soars 10% but Network Yawns 🚀😴

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Key Takeaways

Sonic saw a surge in price following an inflow of over $23 million in TVL and positive chain netflows. However, the potential for a sustained boom does not fully align with the recent gains.

Liquidity grows

The Total Value Locked (TVL), which gauges investor confidence in an asset, has taken a major shift as investors adopt a long-term outlook. It’s like they’re betting on Sonic becoming the next big thing, even if it’s currently more of a hiccup than a boom.

Over the past day, this group of investors added $21.05 million worth of S into protocols on the Sonic chain, according to DeFiLlama. That’s a lot of money, but let’s see if it translates to anything more than a temporary spike.

This inflow suggests that the funds have been locked, a sign that the dominant sentiment leans toward long-term price appreciation. Or, as I like to call it, “hoping for the best while preparing for the worst.”

Additionally, chain netflow data, which measures liquidity moving in and out of the network, shows that investors bridged assets from other chains into Sonic to acquire its native token. It’s like they’re all jumping on the same sinking ship, hoping it will suddenly turn into a luxury yacht.

As of now, $832,000 worth of S has been added to the chain, solidifying its liquidity position at current levels. Not exactly a fortune, but hey, every little bit helps, right?

On-chain activity doesn’t tally

On-chain activity does not match Sonic’s recent price gains. At the time of the rally, both Active Addresses and Daily Transactions on the chain declined. It’s like the party is in full swing, but nobody showed up to dance.

Active Addresses typically indicate broader network usage and rising utility for a token, which often correlates with demand. But in this case, it’s more like a ghost town. Spooky, isn’t it?

Currently, the number of active addresses has dropped to 15,700-just 500 addresses away from the yearly low of 15,200, a level that previously coincided with a price decline. If this keeps up, we might as well start calling it “Sonic Slumber.”

Similarly, Daily Transactions have fallen. At the time of writing, transactions stood at 294,800, confirming that remaining users are engaging less. It’s like a book club where everyone shows up but no one actually reads the book.

There were an average of 18.7 transactions per user, compared to 27.5 per user in May 2023, when price activity surged notably. It’s a bit like comparing a jog to a sprint-both involve running, but one is clearly more enthusiastic.

Off-chain sentiment remains weak

Off-chain sentiment on centralized exchanges also remains weak. During this period, liquidity movement and momentum behind the rally were minimal. It’s like trying to start a fire with a damp match-possible, but not very likely.

For context, Sonic’s daily trading volume stood at $6.14 million-a 32% decline. Historically, a rise in price accompanied by declining volume indicates weak momentum behind a rally, suggesting a potential pullback. In other words, the party might be over before it really gets started.

Open Interest data from CoinGlass further confirms this trend. The total liquidity in derivatives stands at just $23 million, with only $340,000 added in the past day. It’s like a desert oasis that turns out to be a mirage.

Liquidation data shows traders removed less than $200 worth of positions from the market, reflecting weak derivatives sentiment and little interest in Sonic. If this trend in on-chain and off-chain sentiment continues through the week, Sonic may face a reversal of the gains it recorded over the past day. It’s like a rollercoaster that starts to climb but then decides to go backward instead.

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2025-08-18 06:04