The decentralized finance (DeFi) landscape continues to evolve at a rapid pace, and one blockchain making significant waves in early 2025 is Sonic. This high-performance EVM-compatible network recently achieved a historic milestone: its Total Value Locked (TVL) surged to an all-time high of $257.24 million on January 28, 2025. This remarkable growth signals strong user adoption and increasing confidence in the ecosystem’s infrastructure.
While market sentiment around Sonic’s native token has been mixed, the fundamental health of the network—measured by capital inflow and protocol activity—is undeniably robust. The surge in TVL was not driven by a single entity but rather a collective effort from a diverse set of DeFi protocols building on the chain.
Key Protocols Powering Sonic’s DeFi Expansion
The momentum behind Sonic’s TVL growth can be traced directly to its top-performing protocols. These platforms are offering innovative financial tools that attract liquidity providers, yield seekers, and traders alike. Here are the top 10 protocols contributing to Sonic’s rising TVL:
1. Silo Finance – Leading the Charge with $112M TVL
As the largest contributor, Silo Finance dominates Sonic’s DeFi landscape with over $112 million in locked value. This decentralized lending protocol enables users to borrow assets using collateral, creating a trustless credit system that incentivizes participation. Its success reflects growing demand for secure, scalable lending solutions within the ecosystem.
2. Beets (Beethoven X) – $72.3M in TVL
A well-established name in DeFi, Beets brings its powerful yield aggregation and automated portfolio management tools to Sonic. With $72.3 million in TVL, it remains a top destination for users seeking optimized staking and yield farming strategies across multiple liquidity pools.
3. Avalon Labs – $49.5M TVL via Bitcoin-Backed DeFi
Avalon Labs stands out by bridging Bitcoin’s strength with DeFi innovation. As a CeDeFi (Centralized-Decentralized Finance) platform, it allows users to leverage their BTC holdings as collateral for loans. This unique approach has driven $49.5 million in TVL, highlighting strong interest in Bitcoin-integrated financial products on Sonic.
4. SwapX – $21.8M TVL Through Multi-Functional DeFi Tools
More than just a swap platform, SwapX offers advanced features like staking, yield farming, and cross-protocol integrations. Its contribution of $21.8 million underscores user appetite for all-in-one DeFi hubs that simplify complex financial operations.
5. WAGMI – $20M TVL Across EVM Ecosystems
WAGMI leverages its compatibility with multiple EVM-based chains to offer seamless asset access and trading opportunities. With $20 million locked, it serves as a gateway for users exploring diverse DeFi applications across interconnected networks.
6. ICHI – $18.8M via Smart Liquidity Management
ICHI enhances capital efficiency through its Yield IQ Vaults, which automatically optimize returns using compounding strategies across Uniswap V3 and other AMMs. Its presence with $18.8 million in TVL demonstrates growing sophistication among yield chasers on Sonic.
7. Beefy – Yield Aggregation at Scale
As a leading yield aggregator, Beefy enables users to maximize returns through auto-compounding vaults spread across various DeFi platforms. While exact figures fluctuate, Beefy consistently ranks among the top contributors, reinforcing its role as a cornerstone of passive income generation.
8. Shadow Exchange – $7.56M in Advanced DEX Activity
Shadow Exchange brings next-generation decentralized trading capabilities to Sonic. With $7.56 million in TVL, it supports complex order types and deep liquidity pools, catering to more advanced traders within the community.
9. Equalizer Exchange – $4.34M in Staking & Yield Opportunities
Equalizer Exchange allows users to earn passive income through staking and yield farming initiatives tailored for the Sonic network. Its $4.34 million footprint shows steady traction among retail investors looking for accessible earning options.
10. Uniswap – $2.18M Bringing Familiar AMM Infrastructure
Though newer to the Sonic chain, Uniswap has already established a foothold with $2.18 million in TVL. Known for its reliable automated market maker (AMM) model, its integration adds credibility and interoperability to Sonic’s growing DeFi suite.
Why Is TVL Rising While Price Lags?
Despite the impressive growth in Total Value Locked, Sonic’s native token has faced downward pressure. Over the past month, it has declined by 24.3%, indicating stronger selling volume than buying interest. Several factors may explain this divergence:
- Profit-taking after rebranding hype: The recent rebrand from Fantom to Sonic generated significant buzz, potentially leading early investors to cash out.
- Market-wide crypto corrections: Broader macroeconomic trends and risk-off sentiment in Q1 2025 may have impacted investor behavior.
- Decoupling of fundamentals and price: Strong protocol activity doesn’t always translate immediately into price appreciation—especially in speculative markets.
However, this price dip could represent a strategic entry point for long-term investors who recognize Sonic’s underlying strengths.
With a current market capitalization of $1.38 billion, Sonic ranks #69 among all cryptocurrencies. This positions it as a mid-tier asset with substantial room for growth if adoption continues at this pace.
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Frequently Asked Questions (FAQ)
Q: What caused Sonic’s TVL to reach $257 million?
A: The surge was driven by increased adoption across major DeFi protocols like Silo Finance, Beets, and Avalon Labs, combined with renewed investor interest following the rebrand from Fantom to Sonic.
Q: Is a rising TVL good for a blockchain?
A: Yes—higher TVL generally indicates growing trust, active usage, and strong economic activity within a network’s DeFi ecosystem, which can support long-term sustainability.
Q: Why is Sonic’s price falling despite rising TVL?
A: Price and TVL don’t always move in sync. Market sentiment, profit-taking, and external macro factors can drive short-term price declines even when fundamentals improve.
Q: Which protocol has the most influence on Sonic’s DeFi ecosystem?
A: Silo Finance currently holds the largest share with over $112 million in TVL, making it the most influential lending protocol on the network.
Q: Can I earn yield on the Sonic network?
A: Absolutely. Platforms like ICHI, Beefy, Equalizer Exchange, and Beets offer various staking, farming, and yield optimization opportunities for token holders.
Q: How does Sonic compare to other EVM chains?
A: Sonic differentiates itself through high-speed transactions, low fees, and strategic integrations with cross-chain DeFi leaders, positioning it as a competitive player in the Layer 1 space.
The story of Sonic in early 2025 is one of divergence: strong fundamentals clashing with short-term market skepticism. Yet history shows that blockchains with sustained protocol growth and real user engagement often outperform over time.
As more projects launch and liquidity deepens, Sonic could emerge as a major hub for efficient, scalable DeFi innovation.