- SONIC’s tvL has dropped to $ 140 million, informing the liquidity exit and adding a strong drop in price measures.
- Retail traders have started to sell for several months and have become more likely to fall.
Recently, Sonic (s) decreased 11.25%, causing investors to lose 3.78% last month.
Currently, market activities remain as a pledge with both retail and large investors, and some are associated with diversified protocol AAVE (AAVE), contributing to a decline.
Behind Sonic’s liquidity leakage
The recent decline in Sonic prices can be tracked into a significant leak in the market over the last 24 hours. The main indicator of this is the total value (tvL).
According to Defillama, SONIC’s tvL decreased $ 140 million in 24 hours, pulling the ecosystem to multiple main lows.
Source: Defillama
This reduction coincides with the decrease of 10% of the stable coins deployed in Sonic from 582.33m to $ 523.39m over the past week. In short, liquidity leaves quickly and does not come back.
These withdrawal suggests that both retailers and large entities are releasing and ending exposure.
Can the protocol whale be behind?
In addition, AAVE’s protocol activity for Sonic has not improved. In the last seven days, AAVE’s TVL has dropped to a steep 27.28%, the largest reduction in major Sonic connection protocols.
Source: Defillama
This reduction means that potentially large holders are driving out of leaks. AMBCRYPTO later analyzed the behavior of large holders in the market.
According to the large holder Netflow (tracking the inflow and leaks of major players), 2 million FTMs were sold.
Source: INTOTHEBLOCK
At the current price, the group has sold $ 950,000 worth of tokens in the last 24 hours. If this trend continues, Sonic will slip more.
Spot Trader participates in action
In general, the retail investor, SPOT Traders, also contributes to the continuous trend.
For the first time since March, the group has sold SONIC every week. According to CoingLass data, investors have sold more than $ 300,000 assets.
Source: COINGLASS
When these changes have occurred after a few weeks of accumulation, it represents a very negative market sentiment surrounding the next movement of the asset.
At present, most market indicators point out that the value of Sonic will decrease.