Sonic Foundation Launches Amid Fantom’s Key Support Risks

The Fantom Foundation has announced the formation of the Sonic Foundation and Sonic Labs, marking the upcoming launch of the Sonic blockchain. In a recent statement, the foundation emphasized its dedication to leveraging its technologies and shared detailed plans for new initiatives.

With the completion of the Opera chain upgrade approaching, Fantom is now focusing on developing Sonic, a high-throughput blockchain. The Sonic network will introduce a new Layer-1 platform connected to Ethereum via a native Layer-2 bridge.

This strategic integration aims to combine the advantages of a Layer-1 solution—such as cost efficiency, scalability, and speed—with Ethereum’s liquidity, user base, and security protocols.

The Sonic Foundation will oversee governance and treasury management, while Sonic Labs will focus on growing decentralized apps (dApps), partnerships, and user engagement.

The development of the Sonic chain is led by Professor Bernhard Scholz, a virtual machine developer, and directed by DeFi expert Andre Cronje.

Strategic Developments and Token Performance

In addition to the Sonic chain, a recent governance decision has ensured compatibility and a 1:1 migration of Fantom’s native tokens, FTM and the newly introduced S token. This move is part of a broader strategy to explore Sonic’s potential impact on various DeFi and real-world applications, including real-world assets, perpetual decentralized exchanges (DEXs), payments, trade, and high-transaction-based gaming.

Despite these promising advancements, the FTM token has not reacted positively to the recent $10 million strategic funding round and the anticipated benefits of the Sonic chain. Over the past 24 hours, FTM has declined by more than 4%, jeopardizing its support levels.

Moving forward, if Fantom can generate renewed positive momentum and increased purchasing pressure, the FTM token may encounter resistance at the $0.844 and $0.8750 levels before potentially retesting the critical $0.9 zone. Reclaiming the $1 milestone is crucial for the token’s overall outlook.

In conclusion, the launch of the Sonic Foundation and the Sonic chain represents a significant step for Fantom, aimed at enhancing its blockchain infrastructure and expanding its DeFi capabilities.

However, the FTM token’s recent performance highlights the challenges ahead, requiring strategic efforts to bolster investor confidence and achieve sustained growth.