- A whopping $74.59 million worth of S tokens has been unleashed upon the world, increasing the circulating supply by a not-too-shabby 7.39% ๐ค.
- Market participants, being the clever chaps they are, have already begun selling the asset, adding a dash of downward pressure to its performance ๐.
It appears that Sonic [S] has hit a bit of a snag, old bean. A major token unlock has gone live, injecting a cool $74.59 million worth of tokens into circulation. According to the chaps at DeFiLlama, this accounts for 5.17% of the total supply and 7.39% of the circulating supply ๐คฏ.
Now, one might think that this sudden increase in float would be a jolly good thing, but alas, it’s raised concerns about a potential supply glut ๐คฆโโ๏ธ. Unless matched by proportional demand, the imbalance could trigger further downside across spot and derivatives markets ๐.
This increase in float suggests that if supply outweighs demand, it could lead to a market-wide selloff ๐จ. AMBCrypto analysis found that the likelihood of an equal surge in demand remains slim ๐ค.
DeFi Investors Make a Quick Exit ๐โโ๏ธ
At the time of writing, a selloff was already underway ๐. Notably, decentralized finance (DeFi) investors have been reducing their exposure to S tokens ๐ธ.

Between the 3rd and 5th of July, DeFi wallet holders offloaded a whopping $37.9 million worth of S tokens ๐ธ. Their cumulative holdings dropped from $836.44 million to $798.49 million ๐.
This outflow indicates that investors are unlocking S across multiple platforms and withdrawing their assets, implying a shift from long-term holding to a more bearish, sell-oriented sentiment ๐.
Sellers Dominate the Market ๐
On-chain metrics showed the trend wasnโt isolated ๐ค. Retail investors followed suit ๐ฅ.
According to CoinGlassโ Exchange Netflow data, there was a significant outflow of assets over the past week, totaling $427,000 moved from private wallets to exchanges ๐.

The most notable selloff occurred within the past 24 hours, during which spot investors sold approximately $110,000 worth of S crypto, accounting for more than 25% of the weekโs total outflows ๐.
Liquidation data from Coinalyze further confirmed bearish sentiment in the perpetual markets ๐.
In the perpetuals market, long traders saw $182,800 in liquidations, while shorts lost just $8.4 ๐ค.
The takeaway? For every $1 wiped from bearish traders, bullish longs were hit for over $21,000 ๐คฏ. Such a lopsided ratio implied a market tilted heavily in favor of sellers ๐.

A Blast from the Past: January’s Unlock ๐
AMBCrypto analyzed Sโs performance during its last major token unlock to determine whether a similar pattern could emerge ๐ฎ.
During the unlock event on the 4th of Januaryโwhen $998.72 million worth of Sonic token entered circulationโthe token experienced a notable drop ๐.

From a local high on the 4th of January, S token declined 13.5% by the 7th ๐. By the 20th of January, it had recorded a cumulative decline of 42.75% after forming a local low ๐.
At press time, S created a local high on the 25th of June ๐. While this does not confirm an impending price drop, a break below the support level at $0.3022 could signal the formation of a local lower low ๐.

Given the prevailing bearish trend and additional supply pressure expected from the token unlock, S is likely to break down and form a new lower low ๐.
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2025-07-06 02:26