Recently, the Sonic token's price has shown a significant increase, driven by changes in its ecosystem and an upward trend in the cryptocurrency market.
Sonic Growth and Comparison with Solana
Sonic, formerly known as Fantom, reached $0.6072, the highest level since early March. Crypto researcher DeFi Plug explains that the rally was due to the token's undervaluation compared to others like Solana. For instance, Solana's market cap-to-DeFi TVL multiple is 12, while Sonic's is only 2.
Sonic Ecosystem Development
The Sonic ecosystem is rapidly growing, with TVL reaching $854 million in less than three months after rebranding. Thanks to low transaction fees and high speeds, the number of developers is increasing steadily. The fee monetization model returning 90% of network gas fees to developers has attracted about 70 participants, earning over $418,000. This is likely to draw more developers, as seen with AAVE's recent move to Sonic, attracting over $250 million in assets.
Brief Sonic Price Analysis
The four-hour chart shows Sonic rebounded from $0.4055 to $0.60. Breaking the resistance level at $0.5610, the price moved above the 50-period moving average and trendline. Sonic has surpassed the 61.8% Fibonacci Retracement level and Ichimoku cloud indicator, suggesting further growth to $0.7891 or even $1.
Based on the analysis, the Sonic token continues to demonstrate confident growth due to undervaluation and ecosystem development. The reasons for this growth include favorable conditions for developers and steady usage metrics growth.
