Sonic (S): The Rebirth of Fantom (FTM) or just an illusion?

The Story of Fantom Becoming Sonic

For a long time, Fantom (FTM) was a major player in the decentralized finance (DeFi) ecosystem. The blockchain managed to carve out a niche in the layer 1 battle thanks to its EVM compatibility and low fees, attracting a large community of users and developers.

Between 2020 and early 2022, Fantom’s total value locked (TVL) skyrocketed to several billion dollars, largely driven by innovations from its founder, Andre Cronje, one of the most influential pioneers in DeFi.

However, the previous bear market halted Fantom’s rise. Whether due to Cronje’s departure, waning user interest in DeFi, the collapse of certain protocols, a lack of native stablecoins, or the emergence of more trending competing solutions, Fantom gradually lost its appeal and activity.

Faced with this situation, the rebranding to Sonic was more of a necessity than a choice. In 2024, the team decided to pivot from a blockchain that was merely fast and cost-effective to a completely restructured architecture featuring parallel execution, native stablecoin integration, a revamped economic model, and a more developer-friendly ecosystem.

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Sonic’s Architecture and Technology

The transition from Fantom to Sonic was not just a name change. The blockchain was reengineered to meet the needs of modern DeFi applications. The goal is clear: to offer an ultra-efficient, competitive layer 1 that attracts developers and users alike.

Key Elements to Note

• New Infrastructure: Sonic is no longer just a fast blockchain; it is now an optimized layer 1 featuring parallel transaction execution (10,000 TPS), rapid finality (720 ms), and transaction costs under $0.01.
• Revamped Economic Model: Introduction of a Gas Fee Monetization Program, allowing developers to capture up to 90% of transaction fees—an unprecedented approach among EVM-compatible chains.
• Secure Bridging: Deployment of Sonic Gateway, an Ethereum bridge with a 14-day fail-safe to prevent liquidity crises like those experienced with Multichain.
• Native Stablecoin Integration: Collaborations with Circle and Wormhole ensure reliable liquidity on the network.
• Return of Andre Cronje: A key DeFi figure playing a major role in shaping and overseeing Sonic’s new chapter.

A High-Performance Layer 1

Sonic falls into the category of ultra-fast and high-performance layer 1 blockchains. The network claims a throughput of 10,000 TPS, a transaction finality of 720 ms, and network fees below $0.01.

These performance gains stem from a major shift: the introduction of a parallel execution engine. In a way, Sonic is more of a Directed Acyclic Graph (DAG) than a traditional blockchain. This technological choice optimizes transaction processing speed and efficiency.

Comparison of Finality Times:

• Ethereum: ~12 seconds
• Arbitrum / Optimism: ~2-3 seconds
• Sei v2: ~390 ms
• Hyperliquid: ~200 ms
• Sonic: 720 ms

This speed positions Sonic as a direct competitor to new high-frequency trading-focused blockchains such as Sei, Hyperliquid, and Monad.

Gas Fee Monetization

One of Sonic’s most innovative aspects is its Gas Fee Monetization Program. Unlike most layer 1 chains where transaction fees are burned or collected by validators, Sonic redistributes up to 90% of fees to the developers of the applications being used.

Why does this matter?

• This model strongly incentivizes developers to build and attract users to Sonic.
• It fosters a self-sustaining ecosystem, reducing reliance on subsidies or temporary incentives.
• Protocols can redistribute these revenues to their users, making dApps more attractive.

However, this model reduces the deflationary pressure on the S token supply since fewer tokens are burned. Additionally, it decreases the portion of fees allocated to validators, potentially affecting the network’s decentralization. Sonic, however, is betting on mass adoption to offset these effects.

Note: This model is often presented as a groundbreaking innovation, but it is largely inspired by mechanisms pioneered by Berachain, which also relies on fee-sharing to incentivize developers.

Bridges and Native Stablecoins

One of Fantom’s major issues was the lack of secure bridges and the absence of native stablecoins, which complicated value transfers and limited on-chain liquidity. Sonic has addressed these issues with key improvements:

• Sonic Gateway: A secure Ethereum bridge incorporating a 14-day fail-safe to mitigate exploit risks or fund theft (unlike past solutions such as Multichain).
• Native Stablecoins: Sonic now integrates USDC via Circle and Wormhole, ensuring reliable and transparent liquidity for DeFi applications.

These enhancements facilitate better integration with the Ethereum ecosystem and improve capital access, a crucial factor for Sonic’s appeal to developers and investors.

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A Temporary Opportunity or a Lasting Shift?

Investor interest in Sonic is undeniable. Looking at Kaito’s mindshare indicator (which tracks the share of attention a project holds within the community), it has been surging parabolically since early January. In other words, more and more investors are discussing Sonic on social media.

On-chain metrics also confirm this growing interest:

• TVL surpassed $750 million (as of February 24), with significant liquidity inflows.
• The Sonic S token remains resilient despite a bearish trend in the altcoin market.
• Developers are migrating to the ecosystem thanks to direct incentives from Gas Fee Monetization.

However, these indicators do not guarantee sustained adoption. Sonic has been upfront about its strategy: the project is offering an airdrop of 190,500,000 S to attract users and developers to the network. At current token prices, this equates to over $100 million.

Two point systems exist: Sonic Points and Sonic Gems. The first targets users and follows a conventional points distribution model based on network activity. The second focuses on developers, rewarding projects that attract users and liquidity.

Recent liquidity inflows driving Sonic’s TVL from a few hundred thousand dollars to over $700 million are logically tied to anticipated rewards from the June 2025 airdrop. The key question is: what happens once these incentives end?

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Sonic vs. the Competition

Market Comparison

Sonic’s recent success is undeniable, as highlighted in the previous section. While the airdrop opportunity is attractive, it is worth questioning its long-term viability. The layer 1 and high-performance blockchain market is currently highly competitive and saturated.

How to Navigate Sonic?

While Sonic enjoys a first-mover advantage in this segment—since the network is already live—it does not have the same level of funding and VC support as some of its new competitors. However, cases like Hyperliquid have shown that this is not necessarily a prerequisite, and having a figure like Andre Cronje as a backer is a major asset.

History has shown us that liquidity in layer 1 and layer 2 ecosystems migrates rapidly toward the highest-yield opportunities. Investors chasing the most lucrative incentives move faster than a project can adapt.

For now, the launch of Monad’s testnet has not slowed down Sonic’s TVL growth (which is a positive sign), but the upcoming launches of MegaETH and their incentive mechanisms will need to be closely monitored. As long as Sonic remains the most rewarding destination for airdrop hunters, they will stay.

Regarding long-term adoption, the Gas Fee Monetization model is undeniably a catalyst for developer attraction. However, there is no guarantee that this will be enough to retain them once other blockchains introduce competing incentives. Ultimately, the users will have the final say in Sonic’s long-term success.

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Conclusion

Sonic has successfully reinvented itself as a high-performance and competitive layer 1. Its core technological fundamentals are solid: rapid execution, a unique economic model, and an existing liquidity base that provides an edge over its competition.

However, Sonic faces the same challenge as any network in an incentive-driven growth phase: maintaining its attractiveness against future waves of layer 1 projects and new economic models that could divert liquidity and developers.

The Sonic ecosystem is heavily reliant on DeFi activity and its ongoing airdrop campaign, making it a dynamic yet market-dependent environment. For now, it remains an attractive destination for airdrop hunters, and there is no apparent reason to bet against the trend.

In an upcoming analysis, we will provide insights into the airdrop and clear strategies for accumulating points ahead of the 190 million S token distribution.