Is Sonic DeFi the New Titanic? 🚢💸

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  • Well, folks, Sonic’s TVL just took a nosedive of $140M, like a kid on a rollercoaster who forgot to hold on. 🎢
  • Retail traders, after hoarding like squirrels in autumn, have decided to sell, making the price drop faster than my self-esteem at a karaoke bar. 🎤

In the last few days, Sonic [S] has plummeted by 11.25%, leaving investors from last month feeling like they just lost a game of Monopoly. 🏦

Currently, the market is as cheerful as a rainy Monday, with both retail and big-time investors—some of whom are cozying up to the decentralized protocol Aave [AAVE]—adding to the gloom. ☔

Behind the scenes of Sonic’s liquidity outflow

The recent price drop is like a bad magic trick: poof! There goes the liquidity! A key indicator of this disappearing act is the total value locked (TVL). 🪄

According to DeFiLlama, Sonic’s TVL fell by a staggering $140 million in just 24 hours, dragging the ecosystem down like a lead balloon. 🎈

This decline coincided with a 10% drop in stablecoins on Sonic—from $582.33M to $523.39M over the past week. In short, liquidity is leaving faster than my will to exercise. 🏃‍♂️💨

These withdrawals suggest that both retail users and larger entities are unwinding positions like a bad sweater. 🧶

Could protocol whales be behind the drop?

Meanwhile, Aave’s protocol activity on Sonic isn’t winning any popularity contests either. Over the last week, Aave’s TVL dropped by a whopping 27.28%, the largest decline among major Sonic-linked protocols. 📉

This decline suggests that large holders are driving the outflows, like a herd of elephants stampeding away from a bad buffet. 🐘

According to the Large Holder Netflow—which tracks the inflow and outflow activity by major players—2 million FTM was sold. That’s right, folks, they’re selling like it’s Black Friday! 🛍️

At the current price, this group sold $950,000 worth of tokens in the past 24 hours alone. If this trend continues, Sonic might just slide further than my motivation to get out of bed on a Sunday. 🛌

Spot traders join the action

Spot traders, those lovable retail investors, are also jumping on the bandwagon of despair. 🎢

For the first time since March, this group recorded a weekly sell-off of Sonic. CoinGlass data shows investors sold over $300,000 worth of the asset. That’s a lot of coffee money! ☕

When such a shift occurs after weeks of accumulation, it signals a highly negative market sentiment surrounding the asset’s next move. It’s like watching a soap opera where you know the ending is going to be tragic. 📺

For now, most market indicators point toward the likelihood of a further decline in Sonic’s value. Buckle up, it’s going to be a bumpy ride! 🎢

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2025-05-25 03:06