While the global crypto markets continue to experience slow growth, the digital currency Sonic (S) experienced a significant uptick this week. This rally, which saw Sonic reach a daily high of $0.514 on Friday, April 4, an 11% increase within a day, was largely driven by notable expansion in the decentralized finance (DeFi) sector and a bullish technical outlook.
This remarkable rally comes even as investors grapple with fears over escalating tariffs. However, the Sonic DeFi ecosystem, which has consistently shown steady growth in usage and capital inflows, remains resilient. A significant milestone was reached on April 4 when the total value locked (TVL) across the Sonic DeFi ecosystem approached a landmark $2 billion. This figure represents all assets bridged to and from the Sonic network and multiple other chains and reached an all-time high of $1.8 billion.
This was closely followed by Sonic surpassing $1 billion in average TVL on April 2. Both these figures have shown a consistent upward trend since the platform’s inception, highlighting the robust growth of the Sonic DeFi ecosystem.
Sonic’s rally is particularly noteworthy considering the bearish backdrop of the current market. Despite the ongoing global trade war, which has significantly impacted most crypto and stock assets, Sonic’s DeFi sector remains robust. Since its rebranding from Fantom on December 18, Sonic’s DeFi total value locked has soared from $520,540 to $987 million, marking a staggering 189,510% price increase.
By contrast, Solana’s DeFi TVL has fallen from its January 22 high of $11.7 billion to its current level of $6.4 billion. This stark contrast has led some analysts to suggest that Sonic may be undervalued when considering its DeFi growth.
On March 24, DeFi analyst DeFi Plug highlighted this disparity, noting that Solana’s market cap was trading at a multiple of 12 compared to its DeFi TVL. In contrast, the figure for Sonic is 2, suggesting more potential for growth. This disparity, combined with the recent milestones in Sonic’s DeFi sector, may present an appealing prospect for investors willing to venture into the DeFi market.
While the crypto market continues to weather global economic uncertainties, Sonic’s strong performance offers a glimmer of optimism. Its resilient DeFi ecosystem, steady growth, and promising technical outlook make it a cryptocurrency to watch in the coming months.
