Sonic recorded an impressive price increase thanks to strong cash inflows into TVL and liquidity, but on-chain and off-chain data have not truly confirmed this sustainable trend.
Although Sonic has strong growth, network activity indicators and market sentiment currently do not align with price trends, posing a risk of short-term correction.
MAIN CONTENT
Sonic's price has surged significantly due to TVL and liquidity exceeding 23 million USD, but user activity has declined.
The number of transactions, active addresses, and trading volumes have all decreased, indicating that the upward momentum in price is not sustainable.
Derivatives data and off-chain sentiment indicate that cash flow has not improved, and there is a possibility that Sonic's price will correct back.
What is Sonic [S]?
Sonic (S) is a prominent cryptocurrency in the market, recently recording significant price increases along with rises in Total Value Locked (TVL) and cash inflow indicators into the ecosystem.
Sonic is becoming the center of attention thanks to the cash inflow into TVL, reflecting long-term investor confidence, but further monitoring of the trend's sustainability is needed.
AMBCrypto, Report dated 17/08/2025
In the past 24 hours, Sonic increased by 10%, reversing after previously dropping 17%. This event was triggered by over 23 million USD being added to the TVL in the system, reinforcing liquidity positions.
However, warning signs from the network indicate that the current price increase still carries a risk of early correction if not supported by real demand and solid investor sentiment.
How has Sonic's price evolved recently?
In the last 24 hours, Sonic recorded a 10% increase in value, standing out among the best-performing assets in the market, although it had previously experienced a 17% drop.
The unexpected recovery of Sonic demonstrates its potential to absorb new cash flows, but it lacks sufficient sustainable factors without practical usage incentives and community support.
Analysis by AMBCrypto, 2025
The price recovery is mainly driven by large cash inflows into TVL, creating a positive psychological effect. However, the decline in on-chain activity indicators shows that the number of actual participating investors has not increased proportionally.
When price growth does not accompany trading fluctuations or community expansion, the risk of retracement will be high if market sentiment shifts negatively or lacks new leading momentum.
How has the Total Value Locked (TVL) and cash flow on Sonic increased significantly?
TVL on Sonic recorded new cash flow of up to 21.05 million USD in one day (according to DeFiLlama), reflecting long-term growth expectations from investors.
TVL is an indicator of investor confidence in long-term cash flow into the project, but it needs to be combined with actual usage factors to establish sustainable liquidity.
DeFiLlama, Market report, 2025
This large cash flow helps consolidate the liquidity of S, as the additional asset value reached 832,000 USD, indicating attention from investors transferring funds from other ecosystems into Sonic to purchase the native Token.
A significant increase in TVL is often a positive signal as Token Holders choose to lock assets rather than engage in short-term trading, but it is still necessary to monitor corresponding growth in users and actual transaction numbers on the network.
Does Sonic's on-chain data align with price fluctuations?
On-chain indicators show that Sonic's network activity has not increased in tandem with prices. Specifically, the number of active addresses recorded has only 15,700, nearing the year's low of 15,200 addresses.
The divergence between rising prices and declining active addresses reflects unsustainable usage demand, often signaling a market prone to short-term corrections.
Market analysis, Artemis, 2025
At the same time, the total daily transactions (Daily Transactions) on Sonic decreased to 294,800, with an average of 18.7 transactions per user, down from 27.5 transactions/user in May 2023 – a time when prices had previously surged.
The decrease in transactions per user indicates a decline in interaction and the utilization of Sonic's ecosystem, which aligns with the risk of price correction if FOMO cash flow stops.
Does the sentiment and liquidity on centralized exchanges support Sonic?
On centralized exchanges, liquidity and trading volume for Sonic have both declined, despite rising prices. Daily trading volume reached only 6.14 million USD – a decrease of 32%.
When prices rise but trading volumes decline, the market is often in a state of lacking momentum, easily reversing if faced with correction waves.
CoinGlass report, 2025
Derivative cash flow (Open Interest) has also not recorded significant improvement: Total liquidity of derivative contracts is only 23 million USD, while new cash inflow reached only 340,000 USD in one day.
Liquidation data shows that traders withdrew less than 200 USD from positions – reflecting a cautious sentiment, showing little interest in participating in the Sonic market despite significant price fluctuations, increasing the risk of correction as cash flow momentum weakens.
What will happen to Sonic's price if the current market signals persist?
If the divergence between rising prices and network activity – external cash flow – continues, it is highly likely that Sonic will soon correct back, erasing the short-term price gains achieved.
The history of the cryptocurrency market has recorded many cases of strong price pumps due to sudden cash inflows but were corrected early when trading volumes, user counts, and derivative sentiment were weak.
Investors need to be cautious, focusing on observing on-chain, off-chain developments, and actual liquidity indicators – rather than relying solely on price or temporary TVL – to make safe trading decisions in the context of significant volatility.
Comparison table of important indicators of Sonic in recent times
Previous Current Index / Old Peak Notes TVL (Total Value Locked) Additional 21.05 million USD/day — Strong cash inflow into the ecosystem Cash flow into chain 832,000 USD/day — Asset transfer from other chains Active Addresses 15,700 15,200 (year low) Nearing the year's lowest point, indicating a risk of decline Daily Transactions 294,800 — Decrease compared to previous price surge Average Transactions/User 18.7 27.5 (May 2023) Decreased network interaction Daily trading volume (CEX) 6.14 million USD Decreased by 32% Weak off-chain trading sentiment Total Open Interest 23 million USD — Weak derivative cash flow New derivative cash flow 340,000 USD/day — Low interest Position liquidation value Below 200 USD/day — Cautious traders, less participation
Frequently Asked Questions
What is Sonic [S] in the cryptocurrency ecosystem?
Sonic is a cryptocurrency that is attracting attention due to large cash inflows into TVL and liquidity indicators, but network activity and market sentiment still need close monitoring to determine sustainability.
Why has TVL increased significantly while Sonic's user indicators have declined?
The increase in TVL reflects significant cash flow into the ecosystem, but the decline in active addresses suggests that users have not truly returned to use or transact frequently on the network.
How has Sonic's trading volume on exchanges changed?
Daily trading volume on centralized exchanges has decreased by 32% despite rising prices, reflecting weak buying and selling momentum and the risk of a reversal without sustainable new cash flow.
What signs indicate that Sonic's price may correct?
When prices rise but user activity indicators, transaction numbers, and trading volumes all decline, the market typically resets to reflect the actual demand for usage.
What does the Open Interest in derivatives on Sonic indicate about market sentiment?
Open Interest has slightly increased but remains low compared to TVL, along with an extremely low liquidation rate, indicating that traders are still waiting or do not truly believe in the current upward trend.
Has Sonic previously recorded a strong growth phase?
Yes, May 2023 recorded a higher average number of transactions per user and strong price volatility, but currently, network indicators do not support a scenario of strong growth repeating.
What factors should investors pay attention to before placing orders with Sonic?
It is advisable to closely monitor TVL indicators, the number of active addresses, trading volumes on exchanges, and Open Interest to accurately identify real cash flows and market sentiment before trading.
Source: https://tintucbitcoin.com/sonic-hoi-phuc-mang-van-yeu/
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