If nobody does it I bull post $S Sonic. Here it is:
1️⃣ The Pullback So Far
The recent correction in $S Sonic isn’t a sign of weakness. Instead, it’s largely due to market makers and delta-neutral traders unwinding positions. When major CEXs delisted $FTM (now evolving into $S), many validators and fee-farmers had to sell off their hedged positions, causing temporary downward pressure on price.
2️⃣ Context: Farming Fees & Perpetual Contracts
For years, large players and validators farmed fees from perpetual contracts and staking. Essentially, they’d hold a spot position in $FTM, then short an equal amount on perps to stay market-neutral. This strategy let them earn staking rewards and fees from the perpetuals without being exposed to big price swings.
3️⃣ What Are Delta-Neutral Positions?
“Delta-neutral” means you’re positioned so that your gains from one side of a trade offset losses from the other, resulting in near-zero net exposure to price movements. You profit from:
• Staking yields (e.g., from $FTM / $S)
• Funding rates (the periodic payment in perpetual markets.
4️⃣ Why Unwinding Happened
As $FTM got delisted from major CEXs, these delta-neutral positions broke down. Suddenly, it was harder to maintain the hedge in perps—so those funds exited (sold) to avoid risk. The forced selling contributed to the pullback we’ve seen, not a fundamental flaw in $S Sonic itself.
5️⃣ Repositioning with $S Sonic
Now that $S is listed again and new perpetual contracts are being introduced, these same market participants can rebuild their positions—but this time in $S. As they re-enter the market:
• Old delta-neutral strategies can be re-established.
• New capital flows in seeking that yield and fee farming opportunity.
6️⃣ Why This Creates Buying Pressure
When big players decide to rebuild their delta-neutral setups, they need to:
1. Buy or stake $S to lock in staking rewards.
2. Short $S in perps for hedging (if they choose to remain delta-neutral).
But in practice, the net effect is demand for $S as these traders re-initiate their positions. That leads to upward pressure on price.
7️⃣ Bullish Momentum Building
With the “old guard” returning and new participants attracted to the freshly launched $S Sonic ecosystem, bullish momentum is on the rise. If you believe in the project’s fundamentals—and the ecosystem’s renewed growth—now could be a prime time to watch for an upswing.
8️⃣ Summing It Up
• The $S Sonic pullback was more a mechanical unwind than a sign of weakness.
• As new perps list and delta-neutral strategies become feasible again, buying pressure grows.
• Fee farming, staking, and perpetuals are coming together for a renewed bullish push.
