Transcription
What's up, everybody? Welcome back to Selenic Crypto, or welcome to the channel if you're new.
Today, we're diving into Sonic, previously known as Phantom. Back in December, they rebranded to Sonic and launched their mainnet. To be quite honest, in the last two weeks, Sonic has performed extremely well.
I've promised this video to a lot of people in the community, so we're going to take a look at Sonic. We'll examine the fundamentals and the technicals. I will show you some decentralized applications—basically, some dApps—that you can use for the Sonic mana to actually farm the airdrop. So, we'll cover everything you need to know.
Let's get right into it. First of all, Sonic right now, in terms of volume, is doing quite well. The market cap is currently at $2.2 billion, and the volume is around $207 million. That's about 10% of the market cap, which is decent.
What I find most interesting for Sonic is the volume growth. If you look at the last seven days, the volume increased enormously, going from $63 million to $270 million during the last breakout. Right now, the volume is actually lower than it was yesterday, which was an amazing day for Sonic, but it is increasing again.
The volume dropped back down to $194 million, but now it's back up to $234 million. Those are decent increases, but why that matters is that most of the volume in the market right now is actually decreasing.
Now, obviously, there are examples where that's not true, but for most altcoins, it is. Outside of that, what you can see here for S, which is the main token on Sonic, is that this is one of the only coins that's purely objectively in an uptrend.
After we formed this bottom and got our first breakout at 45 cents, you can see the EMAs shifting upwards. Then we broke out above the next level between 50 and 52 cents, which was also accompanied by volume. Volume is one of the best indications that a move is real and not a fake-out.
We actually retested that trend, and it held support. Since then, we've even broken above the next resistance level around 62 cents, which is a respected key level and also the 0.618 FIB. Again, we broke above that level with volume and, in general, fundamental strength.
I expect this uptrend to continue. I think Bitcoin is looking relatively fine here on the lower time frames. Sonic itself has enough momentum to maintain this uptrend. There is resistance at 72 cents, which is the opening price after the rebranding, so I do expect some resistance soon.
However, given the way we've broken out and the current market conditions, I expect that we will be able to hold the level we've broken above and potentially rally up to the next resistance levels around 75 or 80 cents, which is the next liquidity zone.
One of the main drivers of this is that fundamentally, Sonic is doing very well. I can show you that by looking at all the blockchains. The 7-day change in TVL shows how much money is locked up on a network. For most blockchains, that's actually down quite a bit.
In the last month, for most networks, it's down massively—double digits. Hyper Liquid is also holding on fine, but there's one blockchain that's outshining all of them, and that's Sonic. In the last month, Sonic has grown 82% in TVL.
The current TVL is $500 million, which is a lot of money. I think this is due to two things. First, if you use the network, you gain points that will be turned into an airdrop. People are assuming that this airdrop will be quite generous, and by using the network, they can make some extra money.
Outside of that, I've spoken about this before in December and January. I think Sonic is one of the best blockchains for developers. It's super quick, easy to use, and a lot of the revenue that decentralized applications make goes to the dApps themselves, unlike most networks where it goes to Solana or Ethereum.
The app revenue has increased, and we had a very good day yesterday. The volume on the network is increasing over the last month, and we've had some nice inflows over the last week.
Overall, you can see that everything is in an uptrend: higher TVL, higher volume, and more revenue for the decentralized applications. Fundamentally, there's a reason why Sonic is this bullish, and that's why I expect us to continue to be bullish.
If you want to farm this airdrop, some of the biggest applications you can use right now are Beads, Shadow Exchange, and Silo Finance. These are from three different categories.
Silo Finance allows you to provide liquidity in a certain way or lend money that others can borrow, earning some APR or yield on that. This is by far the easiest way to give your money a return, and you can get your money back whenever you want while gaining points.
What I personally like more is Beads, where you can do liquid staking. If you have S tokens, you can stake them here and gain a return. The APR right now is 5.3% on your S tokens, and the value will remain the same because you're exchanging it for these LSDs, which have the same value as the S coin itself.
This is very nice, and I believe you can also get points this way. Outside of that, you can provide liquidity on Shadow. Shadow is one of the biggest decentralized exchanges on Sonic.
If you go to liquidity, and if you don't know how providing liquidity works or about impermanent loss, please look that up because you need to know about it. Here, you have some sick APRs. For example, if you provide liquidity for the pair of S and USDC, the APR right now is 4,000% because they're providing more rewards in their Shadow token.
Very interesting! The TVLs are still in the millions but relatively low, so you can get some amazing APR on this. Like I said, learn about impermanent loss first, because otherwise, you can lose a lot of money, and the value of the liquidity you provided can drop.
In general, it's a great way to make some extra money, gain those points, and be active in the Sonic ecosystem.
I'm quite bullish on this. I have not bought Sonic yet, but I will start using their ecosystem and network a bit more. Congratulations to all the holders, and hopefully, this continues.
I will keep you updated on this, but that's my report and what you need to know for now. Thank you for watching. Take care, and I'll see you all in my next videos. Bye!