Sonic’s New Upgrade: A Recipe for Disaster or a Rally to Remember?

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Sonic’s New Upgrade: A Recipe for Disaster or a Rally to Remember? 🤯

Sonic’s New Upgrade: A Recipe for Disaster or a Rally to Remember?

  • The Sonic network upgrade has unleashed a tidal wave of liquidity, and S, its native token, is swimming in the ocean of opportunity.
  • Spot and derivative traders are like sailors charting a course for the high seas, placing long bets and buying the asset with reckless abandon.

But wait, the past 24 hours of trading activity have been a bit of a stormy sea, with the token dropping 7.22% within this period. One would think that the winds of change would have blown the token off course.

Yet, market sentiment remains strong, like a sturdy lighthouse guiding sailors through treacherous waters. This implies that S still has a chance to continue its past week’s gain of 13.95%, particularly as more liquidity flows into the chain and market participants continue to acquire the asset.

The Upgrade: A Beacon of Hope or a Siren’s Song?

In the past 24 hours, Sonic announced an upgrade to its consensus protocol layer, known as SonicCS 2.0, aimed at improving overall performance.

The upgrade significantly improves the consensus process, doubling transaction validation speed from 16,000 to over 30,000 per second. It’s like a well-oiled machine, churning out transactions like a factory.

Memory usage has been cut by 68%, lowering hardware requirements for validators and promoting greater decentralization by enabling more validators to join the Sonic network. It’s like a symphony of validators working in harmony.

The upgrade benefits various protocols on Sonic, including decentralized trading and token transfers. It’s like a one-stop shop for all your decentralized needs.

Following the announcement, liquidity inflows into the chain surged, with stablecoin balances and bridged TVL (Total Value Locked) seeing notable increases. It’s like a floodgate of liquidity has opened, and the token is swimming in it.

At present, the total stablecoin volume processed on the Sonic chain has reached a record $425.96 million, up $28.41 million from its previous daily low. It’s like a tidal wave of stablecoins has crashed onto the shore.

A spike in stablecoin demand on a chain often signals positive developments, as market participants actively support activities. This may involve buying and holding Sonic’s native token, S, or depositing funds into protocols to earn rewards. It’s like a stampede of market participants rushing to the token’s rescue.

Similarly, the bridged Total Value Locked (TVL), measuring liquidity between chains, shows $1.445 billion has flowed into Sonic’s protocols from other chains. It’s like a river of liquidity flowing into the chain.

Optimism extends beyond on-chain activity, as AMBCrypto reports that both spot and derivative traders are also adopting a bullish outlook. It’s like a chorus of traders singing in harmony.

Sonic: Spot and Derivative Traders are Bullish

Both spot and derivative traders are positioning themselves for an S rally. It’s like a game of musical chairs, with traders scrambling to get on the bandwagon.

At press time, spot traders have adjusted their expectations for the asset and continue to purchase S. In the past 24 hours alone, traders have bought over $278,000 worth of S, closing the week with a total purchase of $742,000. It’s like a feeding frenzy, with traders gobbling up the token.

In the derivatives market, traders are placing long bets as the Open Interest Weighted Funding Rate—an indicator that captures market trends based on Open Interest and Funding Rate—has turned positive. It’s like a green light for traders, signaling a go for the token.

With a press time reading of 0.0026%, this suggests that traders in the derivatives market are more bullish than bearish. If this figure continues to rise, S could see a major market rally. It’s like a rocket ship blasting off into the stratosphere.

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2025-03-28 15:07