Sonic [S] Sees 10% Price Jump, But Key Metrics Point to Caution

Sonic [S] gains 10% with rising liquidity, but declining on-chain activity and low volume signal possible pullback.

18 August 2025, 17:45 published Updated 18 August 2025, 17:46

Sonic [S] Price Up 10%, But Low Trading Volume Signals Possible Pullback

Sonic [S] has posted a strong 10% gain in the past 24 hours, reversing part of its earlier 17% decline. While this price movement positions Sonic as one of the top performers recently, underlying metrics suggest the rally may lack solid support.

Liquidity Inflows Signal Long-Term Confidence

According to DeFiLlama, investors have added $21.05 million in S tokens to various protocols on the Sonic chain, increasing its Total Value Locked (TVL). This suggests rising confidence among long-term holders. Additionally, $832,000 worth of assets have been bridged into the Sonic ecosystem from other blockchains—further reinforcing liquidity at current price levels.

Sonic [S] Sees 10% Price Jump, But Key Metrics Point to Caution

On-Chain Activity Diverges From Price Action

Despite the price increase, Sonic’s on-chain activity has weakened. The number of Active Addresses has dropped to 15,700, just above the yearly low of 15,200. Similarly, Daily Transactions have declined to 294,800, indicating less user engagement. Average transactions per user have also decreased to 18.7, down from 27.5 during previous strong market periods.

This drop suggests that while capital is entering, actual network usage is not keeping pace.

Low Volume and Derivatives Data Raise Concerns

Off-chain data also reflects weak sentiment. Sonic’s daily trading volume has dropped by 32% to $6.14 million. Meanwhile, derivatives open interest remains low at $23 million, with only $340,000 added recently.

Liquidation data shows minimal trader activity, with less than $200 in total liquidations—highlighting low conviction among leveraged positions.

Unless network activity and exchange volume recover, Sonic’s recent rally may be short-lived. Investors should monitor on-chain usage and trading behavior closely, as current metrics point to a possible price pullback in the near term.