Hello everyone, this is the Dardion editorial team, and we continue our selection of altcoins that you should consider taking with you into the upcoming bull run that’s about to start. But remember, always DYOR and the importance of it before investing.
Today, we will talk about Sonic and the FTM coin, a true old-timer from the previous bull market that has managed to survive a lot. People are still speculating with 20-30% swings up and down on this coin, but can it deliver outrageous gains in the future? Let’s find out!
What is Sonic (formerly Fantom)
Sonic is a scalable, decentralized platform for smart contracts with open-source code built on DAG (Directed Acyclic Graph) technology, supporting the creation of decentralized applications (dApps). Unlike traditional blockchains, which consist of blocks, the DAG structure is represented as a graph where the connection directions do not form cycles, allowing the system to operate faster and more efficiently.
Sonic Foundation was established in 2018 by Dr. An Byung Ik, and since then, the platform has gained popularity for DeFi transactions. Sonic uses its own cryptocurrency — the SNC token, which is employed for network governance, validator rewards, and ensuring its security.
What sets Sonic apart from other blockchains like Bitcoin? In Sonic, transaction speeds are just 1-2 seconds, and fees are significantly lower. The main network, Sonic Opera, is compatible with the Ethereum Virtual Machine (EVM), allowing smart contracts to be written in Solidity. Thanks to Sonic’s architecture, each dApp gets its unique blockchain without overloading other parts of the network.
What is the Purpose of the FTM Token?
The primary coin of the Sonic network is FTM, used for transactions, governance, staking, and fees, as well as for securing the network. With its speed and low network fees, FTM is ideal for transfers and exchanges, providing quick transaction finality. Finality means that a transaction is irreversible and cannot be altered.
Network Governance
The Sonic ecosystem is governed through transparent voting. Users can influence changes in the network, where 1 FTM equals 1 vote, allowing FTM holders to vote on network parameters such as staking rewards and technical upgrades.
Staking FTM
FTM holders can delegate their coins to validators to earn rewards. Although personal staking rates are currently at zero, delegated stakes continue to yield income based on the chosen validator’s conditions.
Fees
The FTM coin is also used to pay fees for smart contracts, creating subnets, and transactions. Low fees prevent spam attacks, maintaining network stability.
Network Security
The Sonic network is secured through a Proof-of-Stake (PoS) algorithm, where validators lock at least 1 million FTM to run a node, helping keep the network decentralized and resilient.
How Did the Rebranding from Fantom to Sonic?
In August 2024, the Fantom Foundation underwent a rebranding, becoming Sonic Labs. With the launch of Sonic — an EVM-compatible Layer 1 blockchain supporting over 10,000 TPS and sub-second transaction confirmation — Sonic Labs is now focused on developing the ecosystem and enhancing incentives for developers. The platform integrates with Ethereum for secure liquidity, strengthening its technological leadership.
Features of Sonic Labs
Sonic Labs, having rebranded from the Fantom Foundation, aims to become a leader in decentralized ecosystems, offering an EVM-compatible Layer 1 blockchain with high performance. The Sonic blockchain processes over 10,000 transactions per second and ensures sub-second confirmations, enabling the platform to operate even under heavy loads. Support for Ethereum allows developers to utilize liquidity from both ecosystems, making Sonic an ideal platform for creating scalable and efficient decentralized applications (dApps). Key divisions include Sonic Labs, focused on ecosystem development and partnership projects, and Sonic Foundation, responsible for governance and treasury functions, supporting decentralized decision-making and network sustainability.
For developers, Sonic Labs offers the S token, used for staking, transaction confirmation, and governance. Sonic Gateway, a bridge for interacting with Ethereum, facilitates asset transfers between networks, while Sonic Arcade stimulates innovative dApps by supporting projects through rewards and grant programs. The Proof-of-Stake (PoS) consensus mechanism ensures network security and energy efficiency, allowing users to participate in transaction validation by staking their tokens. Monetization programs and airdrops, such as Sonic Arcade and Sonic Boom, complement the ecosystem, attracting and rewarding the community for participating and supporting the platform.
Advantages of Sonic
High performance with over 10,000 TPS, sub-second transaction confirmations, full EVM compatibility for Ethereum integration, scalability to support heavy loads, innovative incentives for developers, security through Proof-of-Stake, transparent decentralized governance involving token holders, community support via airdrop programs, monetization and distribution of fees among participants, and flexibility of the ecosystem to support dApps and liquidity.
Disadvantages of Sonic
High complexity for novice users, dependency on Ethereum for liquidity, potential scalability risks with sudden load increases, limited decentralization in the early stages, high competition among EVM-compatible blockchains, reliance on incentives to retain developers, need for significant infrastructure investments, possibility of vulnerabilities in cross-chain bridges, potential regulatory risks for the PoS model, and dependence on the community for successful governance and development.
Why is FTM Attractive to Investors?
FTM is attractive to investors due to the network’s high performance, processing over 10,000 transactions per second, which is especially valuable for DeFi applications. Integration with Ethereum allows for the use of existing liquidity and assets, while low fees make the network user-friendly for dApps and their users. Incentive and grant programs from Sonic Labs attract developers, ensuring long-term growth for the ecosystem. The Proof-of-Stake (PoS) model also enables investors to participate in staking and earn income while supporting network security.
Price Forecast for FTM until 2050
We have previously published a price forecast for Fantom FTM, which you can check out below if you are interested:
Conclusion
The future and technologies of Sonic are clear — everything will be fine. The old-timer remains in demand, even under its new name. Investors and retro-hunters are waiting for airdrops for new maneuvers and hype attraction in the blockchain. Meanwhile, Bitcoin is above $72,000, and we will soon see how FTM performs in the bull market.
