Why is @SonicLabs | $S Cooling Down?

Here’s what the onchain tells us.

I’ve been tracking $S since the rebrand hype, and while it was one of the fastest-growing L1s this cycle, the recent slowdown is real and measurable.

Let’s dive in:

[1] TVL → -35% from local top

At its peak, Sonic was flirting with $1.2B TVL.

Today it’s $768M, down -36% since early May.

Outflows are visible across stablecoin positions → down -13.9% in the past 7D.

And bridged TVL is flat at ~$597M. Capital’s rotating out.

[2] Price Action = Reflexive Downtrend

$S is now ~$0.38, down -62% from its Feb ATH of $0.988.

Even worse, volume is drying up across all major CEXs (Binance, Bybit, HTX...) with ~$73M 24h vol against a $1.19B mcap

→ 0.06x vol/mcap ratio = thin liquidity.

[3] User Activity → Falling Hard

Daily active users: ~50.5K

That’s a massive drop from the March-April peak of 120K+.

Spot volume has also dropped to ~$62.8M, and daily transactions are slowing despite low fees.

[4] Dev Activity → Slowing Ecosystem Buildout

Weekly core devs are steadily declining.

And while @SonicLabs’s fee model 90% back to devs is clever, it’s not preventing the drop in builder activity, likely due to diminishing token incentives & lack of sticky use cases.

[5] Revenue is Decent, But Not Enough to Offset Drop

In the last 24h:

- App Revenue: $62.4K

- Chain Fees: $6.8K

- DEX volume: $89.2M

These are solid, but nowhere near the levels needed to maintain a $1.2B FDV narrative without continued user growth.

So what happened?

From what I see:

- Hype + rebrand drove initial surge

- But sticky demand, repeat users, and real app flywheels never followed

This is a reflection of what happens when chain growth outpaces app-layer stickiness.

The question now is can @SonicLabs and @AndreCronjeTech find a second wind?

I’m still watching the fee rebate model and possible app incentives.

But until user retention improves or flagship apps emerge… @SonicLabs stays on cooldown.