The platform experiences contrasting dynamics with TVL surge of 65% reaching $253M while native token S drops 42% in January 2025.
Sonic implements strategic tokenomics with 3.175B total supply, featuring planned airdrops and annual minting capped at 15% until 2031.
In a significant development within the blockchain sector, Sonic Labs has announced that its newly launched Sonic blockchain has achieved a Total Value Locked (TVL) exceeding $250 million. This milestone comes shortly after the platform’s rebranding from Fantom to Sonic, signaling a positive reception from the investor community.
According to from DefiLlama, Sonic’s TVL reached approximately $253 million as of January 28, 2025, marking a substantial increase from $153 million on January 16. This growth reflects a 65% rise over a span of just 12 days.
Sonic’s Token Price Falls Despite Increased TVL
Despite this impressive growth in TVL, the platform’s native token, S, has experienced a downturn. Data from CoinMarketCap indicates that the token’s value has declined by over 42% in January, currently trading at around $0.46.
S is the newly created token by the blockchain after to Sonic. The total supply of the token is set at 3.175 billion tokens, with an inflationary tokenomics model.
The first unlock will occur six months after launch through an airdrop, distributing 6% of the total supply. Additionally, 47.6 million tokens will be minted annually to fuel the network’s expansion.
However, the maximum token expansion is limited to 15% until 2031, excluding block rewards, bringing the overall cap to 3.65 billion tokens.
Sonic distinguishes itself by claiming to be the world’s fastest Ethereum Virtual Machine (EVM) chain, boasting a transaction finality of 720 milliseconds. This rapid finality ensures that transactions become irreversible almost immediately after being added to the blockchain ledger.
The platform first garnered attention in September 2024 when its testnet achieved the 720-millisecond finality benchmark. This achievement positions Sonic as a potential leader in transaction speed within the blockchain industry, provided that similar performance can be replicated on its mainnet.
Andre Cronje, the creator of the original Fantom network and now the Chief Technology Officer of Sonic Labs, emphasized the significance of this development. He noted that while many blockchains require multiple additional blocks to render a transaction irreversible, Sonic’s technology reduces this process to just over 700 milliseconds.
Next Era of Blockchain Innovation
In comparison, other blockchain platforms like Solana have a mainnet finality averaging 12.8 seconds, despite having a block time of 0.4 seconds. This comparison highlights Sonic’s potential advantage in terms of transaction speed.
The rebranding from Fantom to Sonic represents a strategic move to leverage these technological advancements.
According to a blog post from Sonic Labs, the decision to launch an entirely new network with a new token was driven by the desire to usher in the next era of Layer 1 blockchain innovation. The new network offers benefits such as a tenfold increase in node synchronization speed and a 66% reduction in validator node costs compared to the previous Fantom Opera network.
