Sonic (formerly FTM): Why the Surge in Popularity? Can It Spark Another DeFi Boom Cycle?
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Sonic (formerly FTM): Why the Surge in Popularity? Can It Spark Another DeFi Boom Cycle?
Is it old wine in a new bottle, or a genuine innovation?
Navigating Web3 tides with focused insightsIn today's crypto market, as the meme craze fades, many investors find themselves lost.
Sonic—a new blockchain led by Fantom founder Andre Cronje (AC)—is emerging as a fresh focal point in the DeFi space.
With comprehensive performance upgrades, a 6% airdrop incentive, and AC’s highly active involvement in ecosystem development, Sonic has not only attracted numerous entrepreneurs but also reignited market enthusiasm and expectations for DeFi.
Yet, recalling AC’s sudden departure from Fantom, there are lingering doubts about Sonic’s future.
Is this merely rehashed innovation, or a truly groundbreaking leap forward? Let’s explore Sonic’s potential and future through the perspectives of renowned DeFi KOL Chen Mo (@cmdefi) and researcher Da Pangdun (@DaPangDunCrypto). Can Sonic rise as a breakthrough project for DeFi and lead it into another glorious cycle?
The following is a transcript of our conversation. The podcast audio version is also now available:
Xiaoyuzhou Link:
https://www.xiaoyuzhoufm.com/episode/67cc4aad0766616acd85c5d9
Spotify Link:
https://open.spotify.com/episode/2CBKjBOyNhkYKpImohvRSP?si=DeUjwfUORwexH2TQIRn1-g
TechFlow: To start, could you both introduce yourselves?
Da Pangdun:
Hi everyone, I'm Da Pangdun. I entered the industry last cycle and have been all-in on crypto since this cycle began. I usually do research and participate in various activities—whether it's farming, memes, or any ecosystem I like.
Chen Mo:
Hello everyone, I'm Chen Mo. I've been researching and investing in DeFi since 2020. I was involved in the Fantom ecosystem during the last cycle and have a certain emotional connection to its founder, Andre Cronje (AC). So seeing Sonic’s strong performance at launch made me genuinely happy.
TechFlow: Chen Mo, you were part of the Fantom ecosystem in the previous cycle. What differences do you see between Fantom back then and Sonic now?
Chen Mo:
The main upgrade with Sonic lies in performance—the most noticeable improvements being faster speeds, higher TPS, and some degree of parallel execution capability. Of course, average users may not feel these technical changes directly.
From a user perspective, what stands out is that AC is far more engaged than he was last cycle. While AI and memecoins have overshadowed DeFi’s scale, and AC isn’t as “famous” as before, he has stepped forward as someone building the infrastructure. Today’s AC carries no idol complex; he actively participates in and promotes projects within the ecosystem. This reminds me of the Solana Foundation, rallying everyone to move forward together. This kind of leadership is one of Sonic’s key strengths.
Therefore, I’m hopeful that in this relatively weak DeFi cycle, we’ll see a breakout project that brings DeFi back into the spotlight and draws broader participation.
TechFlow: Da Pangdun joined this cycle and recently published research on Sonic, noting it's still in an early stage. Could you share your thoughts?
Da Pangdun:
I previously focused mostly on the BTC ecosystem, then shifted attention to Solana memes. Why did I suddenly turn to Sonic? I believe we’re currently in a narrative gap. After the AI wave, many people suddenly feel uncertain about the future—not because AI failed, but because within this cycle, the AI narrative appears to have fizzled out. Meanwhile, after repeated losses in meme plays, many have become fearful. There’s widespread confusion.
Yet the space always needs a compelling story. That’s when I noticed Sonic—it felt like opening a new world for me as a DeFi newcomer. It’s different from primary or secondary markets; there’s much more calculation involved. DeFi opportunities aren’t as “brutal” as memes, but their lifecycle isn’t as short either. DeFi has mature models, and its stability is exactly what I need.
Secondly, there’s Andre Cronje. Since I didn’t experience Fantom, I don’t carry concerns about “AC quitting.” To me, he feels like Solana’s Toly—an ecosystem evangelist. Regardless of whether a project is good or bad, if it has value, he’ll reshare it. In this current narrative vacuum, the market lacks figures like AC who can drive momentum. Combined with active Sonic Labs and significant network upgrades, I couldn’t afford to miss this ecosystem.
TechFlow: To summarize, your optimism stems from: a current narrative gap; DeFi being a long-term game; and AC actively building the ecosystem. Expanding on that—there’s no shortage of blockchains with DeFi ecosystems today. Why focus on Sonic specifically?
Da Pangdun:
First, Sonic is a new chain, offering substantial profit potential. Second, to accelerate growth, Sonic has promised around 6% in airdrops—an opportunity rarely seen in mature DeFi ecosystems. Additionally, institutional involvement is low, giving it a grassroots, entrepreneurial vibe.
TechFlow: Berachain recently launched PoL, a major milestone. And several VC-backed tokens like $KAITO, $IP, and $BERA have held up well recently. Berachain also emphasizes DeFi. From a DeFi standpoint, how do you compare Berachain and Sonic?
Chen Mo:
I’ve participated in both ecosystems. Comparatively, I see more opportunity in Sonic. Sonic grows organically from the bottom up, while Berachain benefits from massive funding and institutional backing, with many projects closely tied to official teams. Their styles differ. Sonic is friendlier to small and mid-sized builders—AC is willing to support projects that avoid rug-pull risks.
Moreover, Berachain uses staking to earn points, whereas Sonic relies on liquidity mining—which gives retail users greater sense of participation. Rising TVL leads to higher fees and rewards, which boosts token price, further attracting more TVL—a positive Ponzi-like spiral that creates a feeling of growing alongside the project. Take the popular Shadow protocol today—its TVL climbed gradually. In contrast, point-based systems require depositing funds first and only pay out at TGE. Many constantly watch TGE, calculating breakeven prices, losing the joy of co-building. These represent opposite dynamics. Point systems suit those with capital seeking stable returns; Sonic offers greater alpha potential. I prefer Sonic’s model. You might call it retro, but that’s precisely what’s missing now. Everyone’s too restless, fixated only on gains, forgetting the journey of building with projects.
Besides, liquidity mining often faces criticism for being unsustainable—a problem no mechanism has fully solved yet. But Sonic delivers a different user experience.
TechFlow: You mentioned Sonic’s technical upgrades earlier. Could you elaborate on the (3,3) mechanism, and how this cycle’s Sonic (3,3) differs from Fantom’s version?
Chen Mo:
The original (3,3) concept comes from OHM (OlympusDAO). The basic idea was simple: if both parties hold, it’s equilibrium (1,1); if both stake, it’s positive synergy (3,3); if both sell, it’s downward spiral (-3,-3)—a game theory construct.
AC combined the veToken model with (3,3), creating ve(3,3). This allows users to use voting power to direct liquidity incentives to specific pools while earning real yield (e.g., trading fees) from supported pools.
Shadow’s x(3,3) is an optimized version of ve(3,3). Traditional veTokens are illiquid—once locked, you’re committed long-term. x(3,3) allows中途退出, but exiting users must forfeit 50% of their earnings to those who stay. This is a significant change: it provides an exit option for emergencies while doubling rewards for loyal participants.
TechFlow: These changes explain why Shadow stands out. But the entire Sonic ecosystem is performing exceptionally well—is this due to Shadow fueling excitement, or intrinsic value in $S itself? Are there other innovative projects in the Sonic ecosystem?
Chen Mo:
Most innovations in Sonic are incremental, similar to Shadow. From TVL data, we can see substantial capital inflows. Many underperforming projects from other ecosystems join Sonic for subsidies, bringing liquidity. This real-money user acquisition mirrors early DeFi. Because DeFi has been so inactive this cycle, many mechanisms now feel unfamiliar.
Overall, when Sonic offers generous token incentives, TVL naturally rises. In terms of innovation, Shadow is currently the best example.
Da Pangdun:
Currently, Shadow stands alone at the top. For the Sonic ecosystem, many aim for the 6% airdrop. This airdrop targets both regular users and project teams. However, many teams distribute their allocated airdrop shares to users, meaning users can effectively receive two portions—greatly boosting motivation.
Second, as Chen Mo noted, many newcomers haven’t experienced DeFi before. In this narrative gap, DeFi is rekindling research interest.
Third, I wonder: what vision is AC actually building toward? All DeFi projects face the same question: what comes next? Beyond listing, are there other paths? Traditional finance sees DeFi yields as extremely high. We see Sonic developing abstract wallets, gaming products, and AC stating willingness to operate under U.S. regulations. So perhaps AC aims to transition DeFi toward web2—in web3, users prefer GameFi over pure games, where earning comes first.
TechFlow: That leads us to the next topic. People engaging with Sonic clearly believe there’s profit potential. How do you assess metrics like Market Cap / TVL, or when should one become cautious regarding ve(3,3)? What should users watch out for at TGE?
Chen Mo:
In Sonic, I focus on DeFi—that’s its biggest strength. Just as Solana’s edge lies in memes, doing memes well ensures Solana won’t fail. Sonic currently resembles early Solana—airdrops act as bait. As for Sonic’s ceiling, it ultimately depends on DeFi’s follow-through momentum.
ve(3,3) differs from (3,3). Unless Sonic’s overall trading volume collapses rapidly, theoretically there’s no risk of implosion—especially with ongoing incentives, which make such a collapse unlikely. Point-based models, in my view, struggle to break out because they exhaust community enthusiasm before TGE. In contrast, Sonic follows Fantom’s gradual growth path. Under this model, it’s entirely possible for one or two legendary projects like OlympusDAO or Luna to emerge.
In short, breakout appeal is essential—just as Solana defines memes, if Sonic becomes the go-to place for DeFi, that would be a huge success. Moreover, AC’s strongest domain is DeFi—many mechanisms, including ve(3,3), were pioneered by him. I’m eager to see whether AC can identify what this era truly needs. If so, Sonic’s ceiling could be extremely high.
TechFlow: Speaking of legendary projects, recently Super.exchange has gained attention as a potential ‘god-tier’ play. Have either of you participated?
Da Pangdun:
I played Super.exchange very early. My biggest takeaway: understanding the logic behind such schemes is critical. Super.exchange relies on DEX trading fees to buy back and burn tokens—a mechanism akin to “trading mining.” The buyback funds come primarily from external market volume, so sustained high trading volume is essential. Otherwise, reduced buybacks hinder price appreciation. Two key issues exist with the external market:
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Although nearly 60% of the supply has been burned, FDV calculations still use the initial 1 billion total supply, leading retail investors to mistakenly perceive FDV as too high and hesitate to buy.
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Liquidity pools on the external market are created by users, beyond the project team’s control.
Additionally, early investors may expect outsized returns, but due to market sentiment swings and declining external trading volume, actual profits may fall far short of expectations. The key now is whether external trading volume can sustainably grow. Without it, the buyback-and-burn mechanism cannot drive price increases, making long-term viability difficult. Many fail to grasp this mechanism and end up losing money.
Regarding earlier-mentioned DeFi risk signals, I’d like to ask Chen Mo: every DeFi project has a flywheel—sometimes trading volume is the critical driver. How should we identify these key drivers? Should we raise alarms when such metrics deteriorate?
Chen Mo:
In my view, no absolute red flags exist. For projects with flywheel mechanics, there’s always a starting point—if growth slows or declines at that stage, it’s relatively risky. Back in the OHM days, stalled flywheels could sometimes restart. However, in this cycle, people’s attention is too fragmented. When a flywheel stops, there are plenty of other things to play with. Also, genuine demand to restart flywheels is lacking. During DeFi bull runs, massive liquidity demand ignited flywheels, but now few projects create large on-chain pools, and DEXs feel almost invisible.
TechFlow: Earlier you mentioned AC’s compliance-related moves in the U.S., and Daniele’s Hey Anon briefly went viral. Beyond DeFi, do either of you see promising sectors or projects within the Sonic ecosystem?
Da Pangdun:
My capital size is small, so I occasionally seek higher-risk, higher-reward plays. My participation falls into three categories:
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Hunting new projects for alpha, while managing rug risks. Even when AC shares a project, he often says he doesn’t know how it will evolve.
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Focusing on NFTs. Today, many favor utility NFTs, which have strong social virality. Each NFT has unique designs and suffixes. Imagine an X Space filled entirely with Derps avatars—it’s visually striking. Images leave stronger impressions and enhance cultural identity. Projects often reward these NFT holders—I originally got my $Shadow airdrop from the Derps team.
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Stable-yield strategies. Instead of large-capital stablecoin LPs, I look for opportunities via assets pegged to $S.
TechFlow: I also received $Shadow via Derps, and I notice Sonic’s NFTs incorporate DeFi mechanics—they launch with tokens, later allowing token-fed snacks for derps, then room decoration; similar examples include Berps, etc. They aren't purely NFT projects.
Da Pangdun:
Yes, Sonic’s NFTs inherently carry DeFi traits. As Chen Mo said, if people immediately think of Sonic when hearing DeFi, it has succeeded. On Sonic, pure memes struggle to gain traction—everything tends to have a DeFi element, otherwise it’s hard to gain community acceptance.
TechFlow: I think after recent market shifts, people no longer care for pure meme projects—they demand added substance. Chen Mo, do you see potential beyond DeFi in the Sonic ecosystem?
Chen Mo: I’ve followed Daniele’s ANON project, which actually sparked a mini-wave even before Sonic’s recent surge. I mainly focus on DeFi-adjacent areas, including DeFAI. Outside of new projects, other sectors don’t seem to hold significant advantages yet.
TechFlow: Currently, the only DeFAI project I know on Sonic is Hey Anon. Others are like Allora on Polychain, which hasn’t issued a token and focuses on providing infrastructure for AI.
Chen Mo:
Right, but Hey Anon hasn’t achieved breakout status yet. Still, future opportunities are worth watching, especially since Daniele was quite impactful in the last cycle.
TechFlow: Recently, Binance’s “DeFi+AI” research frequently mentions Hey Anon, suggesting growing interest.
Earlier, both of you emphasized DeFi as Sonic’s hallmark. Yet lately, attention seems to shift toward performance. Does Sonic possess unique competitive advantages in performance? Could emerging chains like Monad pose a threat?
Da Pangdun:
Monad has generated tremendous hype, reaching 4 million active users within days of launch. However, I agree with AC’s emphasis on finality—users don’t care about isolated metrics, but rather how quickly they see results after initiating a transaction. Sonic delivers excellent user-level experience.
Chains like Arbitrum and Monad are also fast—everyone has spent years optimizing performance, so no clear winner exists. Modern blockchains shouldn’t try to do everything like Ethereum did. I believe they should function as app-specific chains, excelling in one area, with the chain serving merely as a carrier. Sonic must define its own direction. Today’s DeFi differs from the past—Sonic’s DeFi must not be perceived as outdated. Performance is just foundational; the real question is what applications it enables.
Chen Mo:
We’re long past the era where TPS ruled everything. In early web3, with no ecosystems, everyone competed on TPS. But after years of evolution, the market has already solved performance—either through Ethereum L2s offloading load, or Solana-style parallelization. Today, performance gaps aren’t insurmountable. The winning factor is a competitive ecosystem, not raw specs.
TechFlow: Due to time constraints, we’ll conclude here. Thank you both for your time, and we hope Sonic continues to thrive, drawing more users into DeFi and energizing the entire ecosystem.
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