Sonic Token Falls After $74M Unlock Pressure

Reading time : 6 min.
Share: Facebook
Twitter

Georgi Minev
6 July, 2025, 19:00
52

Sonic (S) Faces Heavy Sell Pressure After $74M Token Unlock — Will History Repeat Itself?

Sonic (S) Token Slumps as $74M Unlock Triggers Bearish Wave Across DeFi and Spot Markets

The Sonic (S) token is under increasing pressure following a $74.59 million token unlock on July 5th, which injected 5.17% of the total supply and 7.39% of the circulating supply into the market.

The unlock, tracked via DeFiLlama, has already triggered a selloff across DeFi platforms, spot markets, and derivatives, with early signs pointing to a repeat of January’s bearish fallout, when a similar unlock led to a 42.75% cumulative price drop.

Supply Shock Sparks DeFi Exodus

Initial market reaction was swift. From July 3rd to 5th, DeFi investors dumped $37.9 million worth of S tokens, shrinking total value locked (TVL) across Sonic-related protocols from $836.44 million to $798.49 million.

This pullback highlights an immediate investor pivot from long-term staking strategies to sell-side sentiment, as many opt to withdraw unlocked tokens and realize gains or cut exposure amid fears of a supply-demand imbalance.

“This sharp shift suggests the unlock has materially altered sentiment—especially for DeFi-native investors,” KriptoNovini.bg noted in its analysis.

Spot and Derivatives Markets Follow Suit

The bearish wave didn’t stop in DeFi.

According to CoinGlass, $427,000 in S tokens moved from private wallets to centralized exchanges over the past week—suggesting mounting sell-side pressure in the spot market. Of this, $110,000 (25%) came within the last 24 hours alone, reinforcing that the downtrend is accelerating.

SUI Faces Bearish Pressure Ahead of $164M Token Unlock — Will $2.40 Hold?

In the perpetual futures market, the data is even more lopsided. Coinalyze reports that:

$182,800 in long positions were liquidated
Shorts faced just $8.4 in losses

This 21,000:1 liquidation ratio signals a market skewed aggressively toward sellers, where bullish traders are being wiped out disproportionately. The imbalance mirrors overwhelming short-term bearish control, with little resistance from bulls.

Flashback to January: A Price Collapse After the Last Unlock

History may offer a cautionary roadmap. On January 4th, Sonic unlocked $998.72 million worth of tokens—an event that triggered a brutal selloff.

From the unlock day high, S fell 13.5% within three days
By January 20th, the token had collapsed 42.75%, forming a local bottom

With the current market echoing January’s sentiment—marked by DeFi outflows, spot exchange deposits, and long liquidations—analysts are warning that a similar multi-week drawdown could unfold.

Price at Risk: Watch $0.3022 as the Line in the Sand

At press time, S had formed a local high on June 25th, and has since struggled to reclaim bullish momentum. The key technical support lies at $0.3022.

A breakdown below this level could confirm a lower low, potentially validating a downtrend continuation pattern. Given the added supply pressure from the unlock and lack of buy-side absorption, the path of least resistance remains downward.

Key Takeaways: Is a Deeper Drop Coming?

$74.59M in new tokens were unlocked on July 5th—7.39% of circulating supply
$37.9M in DeFi outflows signal investor exits
Spot exchange netflows and liquidation ratios heavily favor sellers
January’s unlock led to a 42.75% collapse—a repeat is on the table
Break below $0.3022 could trigger lower-lows and deeper drawdowns

What Traders Should Watch Next

Support levels: $0.3022 is key. A break here may accelerate losses.
Buy volume: Lack of absorption may confirm supply glut dominance.
Funding rates: Watch for shifts that could signal a speculative reversal.
On-chain sentiment: If exchange inflows persist, expect continued pressure.

Bottom Line Unless a strong demand-side catalyst appears to offset the unlock dilution, Sonic (S) may be heading for a prolonged bearish stretch. The current indicators echo past unlock cycles, and without meaningful accumulation, the token’s price could continue to slide toward new local lows.