Crypto Researcher Explains Why Sonic Price May Surge 10x

Sonic, formerly known as Fantom, has experienced significant price growth, reaching $0.6072 on Monday, its highest level since March 3. This surge is largely attributed to a broader rebound in the cryptocurrency market and substantial growth within its Decentralized Finance (DeFi) ecosystem. According to The DeFi Plug, a crypto researcher, Sonic’s rally may have even more potential for growth, possibly seeing its price increase by 5 to 10 times its current value.

One of the key factors contributing to Sonic’s potential growth is its undervaluation compared to other layer-1 blockchain tokens like Solana. While Solana boasts a market cap-to-DeFi Total Value Locked (TVL) multiple of 12, Sonic’s ratio stands at just 2. If Sonic were to catch up to Solana in this regard, it could see a massive increase in value, possibly five to ten times from its current level.

Additionally, Sonic’s ecosystem has expanded rapidly since its rebranding from Fantom, with its DeFi TVL increasing by over $854 million in just three months. This growth is attributed to the network’s low transaction fees and faster speeds, which have attracted more developers. Notably, Sonic’s fee monetization model has been a strong draw, as it returns 90% of network gas fees to developers. This has allowed over 70 developers to earn more than $418,000, which has further incentivized growth. The recent migration of AAVE, the second-largest DeFi network, to Sonic, along with the $250 million in assets it brought with it, highlights the growing demand for the platform.

In terms of short-term price action, Sonic’s chart shows a solid bullish trend. The price has rebounded from $0.4055 on March 11 to $0.60, successfully breaking through key resistance levels at $0.5610. The token is currently above the 50-period moving average and has moved past the ascending trendline from March 11. Additionally, it has surpassed the 61.8% Fibonacci Retracement level and the Ichimoku Cloud indicator, signaling continued upward momentum. As a result, analysts expect Sonic’s price to continue rising, potentially reaching $0.7891, a 30% increase from the current price. If the token surpasses this level, it could see further gains, possibly reaching the $1 mark, which would represent a 60% increase.

Sonic’s rapid ecosystem growth, its undervaluation relative to major competitors, and its robust developer incentives position it for further price appreciation. If these trends continue, Sonic may see substantial gains, potentially reaching levels that are 5 to 10 times its current value.