Sonic token faces a downturn in the bear market, even as its DeFi ecosystem shows significant growth.
Decline of Sonic Token
The Sonic token price fell to 50 cents, which constitutes a 50% decline from its all-time high. This resulted in a sharp decrease in market cap, from $2.8 billion in February to $1.48 billion.
Growth of Sonic DeFi Ecosystem
Despite the token's price drop, Sonic's DeFi ecosystem is performing well. According to DeFi Llama, the total value locked in the ecosystem reached a record $860 million this week, which is $1.7 billion in Sonic terms.
Key contributors to this growth include Silo Finance with $202 million in assets and AAVE V3, which has accumulated over $184 million just a month after its launch. Avalon Labs, Shadow Exchange, and SwapX are other major players in the platform.
Outlook and Upcoming Changes
The growth of the Sonic ecosystem is expected to continue. Circle, the company behind USD Coin, is considering deploying its stablecoin on the platform, potentially increasing the stablecoin volume from the current $255 million. Additionally, the company has recently launched the SonicPay virtual and physical card, which allows payments using the S token and is accepted by over 130 million merchants worldwide.
While the Sonic token faces challenges, its DeFi ecosystem's growth could positively affect future prospects.
