Sonic (formerly Fantom) Sees 25% Jump in Performance
Sonic, formerly known as Fantom, was the second-best performing top-100 crypto coin this week, as it jumped by 25%.
Sonic (S) soared to a weekly high of $0.5882 on Thursday, its highest level since January 31 and 75% above its lowest point this year.
The token jumped as third-party data showed that its ecosystem was thriving. According to DeFi Llama, the total value locked in the ecosystem surged to a record high of $400 million, a significant increase from the $27.5 million it had at the start of the year.
Most dApps in the ecosystem have experienced a substantial increase in assets. Silo Finance, a lending protocol on Sonic, now has $133.7 million in assets, marking a 20% gain in the last seven days.
Avalon Labs assets have also seen a significant jump to $124 million. Other top-performing assets in the Sonic ecosystem include Shadow Exchange, SwapX, and ICHI. This performance indicates that the network is likely to attract more developer interest over time.
Sonic’s price surge can be attributed to its rising staking yield, which surpasses that of other crypto tokens. According to its website, Sonic offers a staking yield of 5.98%, higher than Ethereum’s (ETH) 3.3% and Sui’s 2.55%.
Furthermore, Sonic aims to establish itself as a major player in the meme coin industry through its meme mania promotion. Recent weeks have seen meme coins like Goggles, TinHatCat, and Indi accumulate market caps of over $3 million each.
Sonic Price Forecast
The two-hour chart indicates that the S price hit a low of $0.310 earlier this month and has since rebounded to $0.5500, surpassing the 50-period moving average.
There are indications that the Sonic price is forming an inverse head and shoulders pattern, a popular bullish reversal signal. With the completion of the left shoulder and head sections, the coin may retreat to the right shoulder of $0.4325 before resuming its uptrend. A breakout above the neckline at $0.5878 could signal further upside potential, with the next resistance level at $0.8480, representing a 96% increase from the current level. However, a drop below the shoulder section of $0.4325 would invalidate the bullish outlook.