Sonic’s Rise: The Start of DeFi’s Next Chapter?

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your research before making any investment decisions. For more information, please read our full disclaimer.

Sonic is a high-performance Layer-1 blockchain designed to deliver ultra-fast transactions, low fees, and scalability without compromising security. Built with compatibility with the Ethereum Virtual Machine (EVM), Sonic enables developers to deploy decentralized applications (dApps) and smart contracts seamlessly.

It evolved from the Fantom network and aims to support diverse use cases such as decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and enterprise solutions.

Key features of Sonic include:

• Transaction Speed: Over 365,000 transactions per second (TPS) with sub-second finality.
• Low Fees: Minimal transaction costs due to its energy-efficient Proof-of-Stake (PoS) consensus.
• EVM Compatibility: Supports Solidity and Vyper, enabling Ethereum developers to migrate dApps without modifications.
• Developer Incentives: Up to 90% of transaction fees are shared with dApp developers.

// Understanding Sonic

Sonic's architecture addresses the limitations of traditional blockchains. It combines high throughput, low latency, and scalability through a robust PoS mechanism. This consensus model ensures faster transactions, reduced energy consumption, and enhanced network security.

Sonic also introduces a native interoperability solution called Sonic Gateway, which allows secure and efficient asset transfers between Sonic and other blockchains like Ethereum. This cross-chain functionality expands the liquidity and utility of assets within the Sonic ecosystem.

Additionally, Sonic's fee monetization program incentivizes developers by sharing transaction fees generated by their applications. This sustainable economic model fosters innovation and long-term ecosystem growth.

// How Does Sonic Compare to Other L1’s?

Advantages of Sonic

• Speed: Over 365,000 transactions per second (TPS) with sub-second finality.
• Low Fees: Minimal transaction costs due to its energy-efficient Proof-of-Stake (PoS) consensus.
• EVM Compatibility: Fully compatible with Solidity and Vyper, enabling seamless migration of Ethereum dApps.
• Cross-Chain Interoperability: Sonic Gateway allows secure asset transfers between Sonic and other blockchains like Ethereum.
• Developer Incentives: Up to 90% of transaction fees are shared with dApp developers.
• Scalability: Designed to handle high throughput without compromising network security.
• Energy Efficient: PoS mechanism reduces energy consumption compared to traditional Proof-of-Work systems.
• User Rewards: Sonic Points and Gems programs reward both users and developers.
• Growing Ecosystem: Expanding DeFi ecosystem with DEXs, lending platforms, and NFT marketplaces.
• Institutional Appeal: Led by Andre Cronje, signaling a focus on sustainability and long-term growth.

// SONIC'S GROWTH SO FAR

Image Source: DeFiLlama

As of 19th February 2025, Sonic Chain isn’t just running; it’s sprinting past the competition like it's late for airdrop season. With a staggering 25.2 million transactions already in the books, 58,571 smart contracts deployed, and over 755,828 distinct addresses joining the party, it’s safe to say the hype train has officially left the station. And guess what? There’s no sign of it slowing down.

With a TVL now flexing past $535 million and daily trading volumes cruising at $48 million, Sonic’s DeFi ecosystem is stacking liquidity like it's collecting rare NFTs. Whether you’re chasing yield, stacking $S, or farming points like a degen on a mission, Sonic’s explosive growth proves that this chain isn’t just fast; it’s here to dominate.

Key Performance Metrics 📊

• Total Value Locked (TVL): $535.18 million
• Stablecoins Market Cap: $76.37 million
• App Revenue (24h): $187,710
• Trading Volume (24h): $48.3 million
• Perps Trading Volume (24h): $9.21 million
• Inflows (24h): $393,056
• Bridged TVL: $476.17 million

On-Chain Metric Sources: SeaLaunch Team

// Why Sonic Is Gaining Traction? 

Sonic is gaining traction in DeFi, and it’s not just hype; it’s substance. With the market finally sobering up from its meme coin bender, Sonic stands out for its DeFi-first approach and the involvement of Andre Cronje, the brains behind Yearn Finance and Fantom. His presence screams, “We’re here to build, not gamble,” signalling a focus on sustainability, interoperability, and efficient liquidity management.

But is the market genuinely breaking up with memes, or is this just a temporary fling with responsibility?

While dog coins and cartoon frogs have hogged the spotlight, investors are increasingly swiping right on platforms that offer real utility, like yield generation, lending, and cross-chain interoperability. Sonic’s infrastructure hits the mark, appealing to both degens and institutions alike. And let’s not forget the airdrop incentives because nothing says “welcome to the ecosystem” like free tokens. Unlike the spray-and-pray airdrops of the past, Sonic rewards users who actually contribute, locking in long-term engagement. 

Whether this shift is the start of a mature crypto era that's eager for innovation or just a break before the next meme craze remains to be seen. Either way, Sonic’s making waves; this time, it’s not just noise.

// Sonic Points and Gems Explained 

Image Source: SonicInsights

Sonic Labs has introduced an innovative airdrop program to reward users and developers within its ecosystem. This program centres around Sonic Points and Sonic Gems, offering multiple avenues for participants to maximize their potential rewards.

Sonic Points:

Sonic Points are allocated to users based on their engagement with whitelisted assets and applications within the Sonic ecosystem. These points are distributed over multiple seasons, with the first season concluding in June 2025. Participants can earn points through the following methods:

• Passive Points: Earned by holding whitelisted assets directly in Web3 wallets like Rabby or MetaMask. Assets held on centralized exchanges are not eligible. 

• Activity Points: Gained by deploying whitelisted assets as liquidity on participating decentralized applications (dApps). This approach offers double the points compared to passive holding. 

Whitelisted Assets and Multipliers:

To incentivize specific assets, Sonic assigns multipliers that boost the points earned:

Sonic Gems:

Sonic Gems are developer-focused incentives aimed at fostering innovation and user engagement. Applications (apps) within the Sonic ecosystem compete for these Gems, which can be redeemed for liquid $S tokens. Developers can distribute these tokens to their users as they see fit, often through independent points programs considering factors like liquidity contribution and duration. 

Maximizing Potential Airdrop Rewards:

To enhance your eligibility and potential rewards in the Sonic airdrop:

• Hold and Utilize Whitelisted Assets: Acquire assets with higher multipliers, such as scUSD or USDC.e, and hold them in supported Web3 wallets.

• Engage Actively with dApps: Deploy your assets as liquidity in participating applications to earn activity points, which offer higher rewards than passive holding.

• Participate in App-Specific Programs: Identify and engage with apps with their points programs, as they may offer additional incentives.

• Stay Informed: Regularly check the Sonic Points Dashboard for updates on whitelisted assets, multipliers, and participating apps.

Users can maximise their potential airdrop rewards by strategically holding and deploying assets and actively participating in the Sonic ecosystem. 

Vesting of Airdrop:

Sonic’s airdrop includes a vesting schedule designed to promote long-term engagement and token stability. Users receive 25% of their allocated $S tokens immediately upon claiming, while the remaining 75% vests over 270 days. Early claims during the vesting period resulted in a partial burn of tokens, with the burn rate decreasing linearly over time. Waiting for the full vesting period allows users to receive their full allocation without penalties. This deflationary mechanism reduces the token supply over time, supporting sustained participation and value growth within the Sonic ecosystem.

// The Sonic Ecosystem 

Image Source: SonicHub

The Sonic ecosystem is a rapidly expanding network of decentralized applications (dApps), infrastructure services, and financial tools designed to leverage Sonic Chain's speed, scalability, and low fees. From high-speed decentralized exchanges like SpookySwap and Equalizer to advanced lending platforms like ZeroLend and yield optimizers like Beefy Finance, Sonic offers diverse opportunities for users and developers alike.

There are far too many projects to call out in this post, so I will summarise a few notable projects to watch as I see great potential. 

- Shadow Exchange

A decentralized exchange (DEX) leveraging Sonic’s speed and low fees, using a concentrated liquidity model and a fungible x(3,3) token system. It enables efficient capital allocation, reduces slippage, and offers accessible governance and liquidity rewards.

- WAGMI 

A decentralized exchange (DEX) built by Daniele Sestagalli, offering multi-chain support, advanced liquidity strategies, and auto-rebalancing for optimal returns. Integrated with Sonic, WAGMI provides efficient token swaps, high liquidity, and a user-friendly experience. 

- Silo Finance

A decentralized lending protocol that enables isolated lending markets for any crypto asset, ensuring risk is contained within each market. Integrated with Sonic, Silo Finance offers efficient capital allocation, low collateral requirements, and secure, permissionless lending opportunities. 

- Navigator Exchange

A decentralized exchange (DEX) within the Sonic ecosystem that supports trading across crypto, forex, and commodities with up to 100x leverage. Its native token, $NAVI, plays a key role in platform governance and rewards.

- SpookySwap

Originating from the Fantom network, SpookySwap is a well-established DEX now integrated into the Sonic ecosystem. Powered by the $BOO token, SpookySwap offers a comprehensive suite of features, including token swaps, liquidity provision, and yield farming opportunities, all designed to facilitate efficient and user-friendly decentralized trading experiences.

- Equalizer

Equalizer positions itself as a rapid liquidity hub within the Sonic ecosystem, providing optimized trading and earning opportunities through a vote-escrowed model. This structure incentivizes active participation from users, aligning rewards with their engagement. 

- Beets

Beets, previously Beethoven X, serves as the flagship Liquid Staking Token (LST) hub on Sonic, offering users seamless staking opportunities and the ability to earn real yield through LST-focused liquidity pools. With a TVL of $114 million, Beethoven X plays a pivotal role in enhancing liquidity and providing staking solutions within the Sonic ecosystem.

- Rings Protocol

Rings Protocol introduces a meta-stablecoin system for USD and ETH within the Sonic network. It offers competitive yields for stakers, ensures deep liquidity for Sonic's DeFi landscape, and supports funding for emerging projects through its locker system. The protocol's TVL stands at $36 million.|

- SwapX

SwapX is Sonic's native DEX, leveraging Algebra V4 for advanced concentrated liquidity management. It employs ve(3,3) tokenomics and pioneers modular DeFi solutions through its innovative plugin technology. This design allows for efficient and customizable trading experiences, catering to a wide range of user needs.

- PaintSwap

A decentralized exchange (DEX) and NFT marketplace originally built on Fantom is now integrated into the Sonic ecosystem. PaintSwap enables token swaps, liquidity provision, NFT trading, and yield farming, supporting both DeFi and NFT communities within Sonic.

If you'd like to know more about what's in the ecosystem, Sonic Labs has some excellent resources. 

// Opportunities for Earning 

Sonic offers multiple earning opportunities with competitive APYs, making it attractive for yield seekers:

• Staking: Stake $S tokens to earn rewards.
• Liquidity Provision: Provide liquidity on DEXs like Shadow Exchange and SwapX to earn trading fees and LP rewards.
• Yield Farming: Participate in yield farming pools with high APYs.
• Fee Sharing: Developers can earn up to 90% of transaction fees from their dApps.
• Cross-Chain Arbitrage: Leverage Sonic Gateway to profit from price differences across blockchains.

Image Source: X - @phtevenstrong

When it comes to squeezing the most out of your assets, knowing where and how to deploy your capital is essential. But don’t just take our word for it; check out this insightful post from @phtevenstrong.

It breaks down practical strategies, risks to watch out for, and key opportunities for optimizing your yield game.

// Future Developments and Opportunities

Sonic’s roadmap includes several upcoming developments designed to expand its ecosystem and utility:

• Cross-Chain Expansion: Enhanced interoperability with additional blockchains.
• NFT and Gaming Integration: Growth of NFTs and blockchain gaming projects.
• Innovator Fund: Up to 200 million $S tokens allocated to support new ventures.
• Airdrop Continuation: Ongoing airdrop programs to reward community engagement.

// Blocmates Interview with Andre Cronje and Michael Kong from Sonic

For an exclusive perspective on Sonic Chain’s growth and future, watch this insightful video interview with Andre Cronje and Michael Kong by my good friends over at Blocmates.

This conversation dives deep into Sonic’s development, innovations, and what lies ahead; it is well worth a watch, so subscribe to Blocmates for content your dad could even understand. 

Blocmates Website
Blocmates X (Twitter)

// How to Get Started

So, you’re ready to dive into Sonic? Congrats; you’re about to experience blockchain speed so fast it'll make Solana look like it's still buffering. Don’t worry; setting up is more straightforward than explaining crypto to your grandma. Follow these steps, and you’ll be farming, staking, and chasing airdrops faster than you can say, “Wen Lambo?”. 

Step 1: Get a Wallet 

First things first, you need a wallet that plays nice with Sonic. We recommend MetaMask, but mainly Rabby Wallet (because let’s face it, MetaMask sometimes acts like it needs a coffee).

• Download the wallet extension or app.
• Set up your wallet (write down your seed phrase like it’s the Wi-Fi password at a coffee shop—don’t lose it, don’t share it).
• Configure Sonic Mainnet.

Sonic Network Details:

• Network Name: Sonic
• RPC URL: https://rpc.soniclabs.com
• Explorer URL: https://sonicscan.org
• Chain ID: 146
• Currency Symbol: S 

Step 2: Get Some S Token 

You’ll need $S tokens to pay transaction fees and unlock that sweet DeFi goodness. 
Here’s how to get them:

• Option 1: Buy $S on centralized exchanges like Binance, Gate.io, ByBit or OKX
• Option 2: Bridge using DeBridge from other chains to Sonic. 

Keep in mind $S is the Gas token used on Sonic! So if you bridge just stables, you might be caught with your pants down. 

// Resources and Extra Material

• Official Website: Sonic Web
• Official Documentation: Sonic Docs
• Community Channels:
  • Telegram
  • Discord
  • Twitter
• Blockchain Explorer: Sonic Explorer
• Wallet Setup Guide: Available in the official documentation
• Sonic Gateway Bridge: Detailed instructions in the official docs