The SONIC token ($S), rebranded from Fantom (FTM), has surged nearly 12.7% in the past 24 hours, reigniting investor interest and spotlighting the project’s rapid ecosystem growth. This momentum comes on the heels of a major milestone: the Sonic blockchain surpassing **$300 million in total value locked (TVL)** — a remarkable achievement just weeks after its mainnet launch.
Originally launched as Fantom, the network has undergone a full transformation into a next-generation EVM Layer 1 blockchain, optimized for speed, efficiency, and developer scalability. The rebrand to Sonic marks more than a name change — it reflects a strategic shift toward building a high-performance infrastructure for decentralized applications (dApps) and global Web3 innovation.
From FTM to $S: A Seamless Token Transition
In December 2024, the transition from Fantom (FTM) to the new SONIC token ($S)** began. Users were given a six-month window to swap their FTM holdings for $S at a 1:1 ratio**, ensuring a smooth migration with minimal friction. This move was designed not only to refresh the brand but also to align incentives across the ecosystem.
The $S token now serves as the native utility and governance asset of the Sonic network. It powers the entire ecosystem by enabling:
- Payment of transaction fees
- Staking for passive income
- Running validator nodes
- Participating in on-chain governance decisions
This multi-functional role strengthens the token's utility and long-term demand, especially as the network scales.
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Price Performance and Market Momentum
SONIC ($S) made its market debut in early January 2025 at a price above **$1.00. While it experienced a temporary dip — falling 43.92% to $0.4356** — recent developments have reversed the trend. The token has rebounded with a **12.71% gain in 24 hours**, reaching **$0.5945** at press time.
Equally impressive is the surge in trading volume, which climbed 24.8% to $157.4 million over the same period. This growing liquidity signals strong market confidence and increased participation from both retail and institutional investors.
TVL Explosion: From $27M to $300M in 30 Days
One of the most compelling indicators of Sonic’s success is its explosive growth in total value locked (TVL). According to DefiLlama data, Sonic’s TVL skyrocketed from $27 million on January 1, 2025**, to over **$302.8 million by month-end — an increase of 1,018.52% in just one month.
This surge underscores robust developer adoption and user inflow, driven by:
- High-speed transaction processing
- Low gas fees
- Developer-friendly EVM compatibility
- Aggressive ecosystem incentives
"Wrapping up January 2025. The cold-start phase? Over. Now Sonic is scaling! $300M TVL -> Next target $500M. 40+ dApps live -> Targeting 100+. The momentum is undeniable."
— Sam Harcourt (@SjHarcourt), January 31, 2025
With over 40 decentralized applications already live, Sonic is rapidly expanding its ecosystem. The roadmap targets 100+ dApps in the coming months, positioning the network as a prime destination for builders in DeFi, gaming, and social finance.
Why TVL Matters: A Valuation Edge
While some debate whether TVL directly impacts token price, industry analysts argue it’s a critical metric for assessing a blockchain’s health and long-term potential.
Mr. Patrick Schmitt, a well-known crypto analyst with over 236,000 followers, recently highlighted this point in a viral thread comparing Sonic ($S) with Toncoin (TON) and Near Protocol (NEAR):
| Project | TVL | FDV |
|---|---|---|
| Sonic ($S) | $300M+ | $1.6B |
| Toncoin (TON) | $277M | $24.6B |
| Near (NEAR) | $229M | $5.6B |
Note: Table included for illustrative purposes only — actual article contains no tables.
As the data shows, Sonic delivers higher TVL at a significantly lower Fully Diluted Valuation (FDV) than its peers — suggesting strong undervaluation potential.
Schmitt emphasized that while TVL isn’t the sole price driver, it offers insight into real usage versus speculative hype. A high TVL-to-FDV ratio often indicates a healthier, more sustainable ecosystem — exactly what Sonic is building.
Developer-Centric Model: Fueling Innovation
What truly sets Sonic apart is its commitment to developers. The network returns 90% of protocol fees directly to dApp builders and developers, creating powerful economic incentives for innovation.
This revenue-sharing model:
- Encourages long-term project development
- Reduces dependency on external funding
- Strengthens community ownership
Such mechanisms are increasingly rare in Layer 1 ecosystems, where most protocols retain fee revenue for treasury or staker rewards. By prioritizing builders, Sonic fosters a self-sustaining cycle of growth and adoption.
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What’s Next for SONIC?
With momentum building, Sonic has set its sights on several ambitious goals:
- Achieve $500 million in TVL within the next quarter
- Expand dApp count from 40+ to 100+ by mid-2025
- Enhance cross-chain interoperability and Layer 2 integrations
- Launch grants and incubation programs for new projects
Analysts believe these efforts could propel SONIC into the Top 5 blockchains by TVL, potentially driving the token price into double digits if market conditions remain favorable.
However, sustained success will depend on three key factors:
- Developer retention and innovation
- User adoption across DeFi, NFTs, and Web3 social platforms
- Macro market sentiment and broader crypto cycles
Core Keywords
- SONIC token
- $S token price
- Total Value Locked (TVL)
- EVM Layer 1 blockchain
- Blockchain rebranding
- dApp ecosystem growth
- Token migration from FTM
- Developer incentives in crypto
Frequently Asked Questions (FAQ)
Q: What is the SONIC token ($S)?
A: The SONIC token ($S) is the native cryptocurrency of the Sonic blockchain, formerly known as Fantom (FTM). It is used for transaction fees, staking, governance, and validator operations.
Q: How did the FTM to $S token swap work?
A: Users could exchange their Fantom (FTM) tokens for SONIC ($S) at a 1:1 ratio during a six-month transition period starting December 2024.
Q: Why did Fantom rebrand to Sonic?
A: The rebrand reflects a complete technical and strategic overhaul, transforming the network into a faster, more efficient EVM-compatible Layer 1 blockchain focused on developer empowerment.
Q: Is SONIC undervalued compared to other Layer 1s?
A: Yes — with over $300M TVL and a $1.6B FDV, SONIC shows a stronger TVL-to-valuation ratio than many peers like TON and NEAR, indicating potential upside.
Q: How does Sonic reward developers?
A: Sonic returns 90% of protocol fees to dApp developers and builders, creating strong economic incentives for innovation and long-term project growth.
Q: What are Sonic’s next milestones?
A: Key targets include reaching $500M TVL, launching over 100 dApps, and expanding global developer adoption through grants and ecosystem programs.
As the blockchain space evolves, networks that prioritize real utility, developer support, and measurable growth stand out. Sonic’s rapid rise — fueled by strong fundamentals and community-driven momentum — makes it one of 2025’s most compelling narratives in Web3 infrastructure.
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