Altcoins News
By Julie Binoche
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Sonic (S), a decentralized finance (DeFi) protocol, has recently encountered significant headwinds as its ecosystem faces accelerating liquidity outflows.
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TVL represents the overall value of tokens locked in a DeFi protocol and is often used as a proxy for its health and popularity.
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Alongside the TVL decline, the amount of stablecoins deployed on Sonic dropped from $582.33 million to $523.39 million in seven days.
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This mass exodus of liquidity reflects growing investor caution, and many are speculating whether “smart money” — large institutional holders or whales — are pulling out,…
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One of the biggest concerns is that large holders, commonly called whales, may be orchestrating the sell-off.
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Data from IntoTheBlock’s Large Holder Netflow reveals that approximately 2 million FTM tokens were sold by large holders within the last 24 hours.
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The involvement of large holders often magnifies price swings because their trades are significant enough to influence market dynamics.
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Adding to the pressure, retail investors appear to be joining the sell-off. After months of accumulation, retail traders started offloading Sonic tokens, with CoinGlass reporting…
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Retail participation often reflects the broader market sentiment. When retail traders start selling after an extended accumulation period, it often signals shifting expectations…
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This combination of whale selling and retail selling creates a negative feedback loop, accelerating price declines and further eroding confidence.
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Sonic’s price has taken a hit amid these liquidity outflows. Over recent days, Sonic declined by 11.
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The loss of liquidity also impacts Sonic’s ability to support transactions and lending activities on the platform, which could hamper its growth prospects and user adoption in…
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For now, the outlook appears bearish as both large and retail holders continue to reduce exposure to Sonic.
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Investors should monitor key metrics closely, such as TVL movements, whale netflows, and retail activity, to gauge whether the current downtrend will persist or if recovery signs…
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If large holders reverse course and begin accumulating again, it could restore confidence and trigger a bounce.
The Currency Analytics
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