Sonic Crypto Price Fluctuates as Network Hits 120 Million Transactions

Sonic cryptocurrency saw a price increase for the second day in a row, with the network achieving a significant milestone of 120 million transactions.

Key Takeaways

Sonic token experienced a 25% price increase from its weekly low, reaching $0.3555.
The recent surge coincides with the network surpassing 120 million transactions within six months of its launch.
Transaction volumes dropped dramatically, plummeting 202% to 8.6 million over the last month.
Active addresses decreased by 40%, indicating potential challenges for the Sonic ecosystem.
The total value locked (TVL) in Sonic has fallen significantly, currently standing at $1.2 billion after peaking at nearly $2 billion.
A bearish descending triangle pattern suggests the possibility of further price declines unless a bullish breakout occurs.

Sonic crypto price on edge as network its a 120m milestone

Main Content

The Sonic token rose significantly, peaking at $0.3555 on Thursday, which represents a 25% increase from the lowest point this week. However, at press time, the token's price settled at $0.3300.

This price rise came after developers revealed that Sonic’s layer-1 network had achieved 120 million transactions, just six months post-launch. While this is an important achievement, there are concerning signs that suggest Sonic may be losing momentum. This could explain why the token saw a decrease after its initial spike.

Data from Nansen indicates that Sonic’s transaction count plummeted by 202%, with only 8.6 million transactions occurring in the last 30 days. Likewise, the number of active addresses on the network fell by 40% to approximately 232,000. This slowdown in performance stands out, particularly as other blockchain networks, like Arbitrum and Linea, reported increases in transaction activity.

Further analysis reveals that Sonic's ecosystem is facing hurdles. According to DeFi Llama, the stablecoin reserves within the ecosystem fell to $209 million, marking the lowest point since March and significantly below the year-to-date high of $597 million.

Additionally, Sonic’s total value locked (TVL) has been on a downward trajectory in recent months. After reaching close to $2 billion earlier this year, the TVL has now dropped to around $1.2 billion.

On the daily chart, the Sonic crypto price has shown sideways movement in recent days. The price hovered around $0.30, just above the year-to-date low of $0.2490.

Currently, the token is exhibiting a descending triangle pattern, which is typically seen as a bearish continuation signal. With declining transaction volumes, DeFi assets, and stablecoin availability, the risk of a further downward trend exists. Should a bearish breakdown occur, the first target would be the all-time low of $0.2490. A move below this level could signal even more declines ahead.

Conversely, should the price break above the upper boundary of the descending triangle, it would confirm a bullish breakout and indicate potential for further gains.