- Sonic is about to improve to native USDC and combine with CCTP V2 for higher liquidity and expertise.
- Sonic (S) value, presently at $0.5226, could hit $1.03 or fall to $0.3596 after the improve.
- A profitable transition may spark elevated adoption and liquidity, probably pushing the S value greater.
Sonic (S), the native token of the Sonic blockchain, has been buying and selling in a tight vary for the previous 48 days, with buyers eagerly awaiting the upcoming transition from bridged USDC to native USDC.
This transition, scheduled to start on May 6, 2025, is anticipated to deliver important adjustments to the Sonic ecosystem, probably impacting the value of Sonic (S).
As the market stays in a state of anticipation, understanding the implications of this transition and the present technical setup is essential for predicting the long run value motion of Sonic (S).
The upcoming bridged USDC to native USDC transition on Sonic
Bridged USDC, referred to as USDC.e, is a model of the broadly used stablecoin USDC that has been bridged from one other blockchain to the Sonic community.
This bridged kind has been purposeful however carries limitations like potential liquidity fragmentation and dependency on third-party bridging mechanisms.
The shift to native USDC, issued immediately by Circle on the Sonic blockchain, is designed to beat these challenges and streamline operations.
Native USDC is absolutely regulated, backed by reserves, and redeemable on a 1:1 foundation for US {dollars}, providing a sturdy and reliable stablecoin choice.
It additionally introduces institutional on/off-ramps by way of Circle Mint, enabling eligible companies to seamlessly have interaction with the Sonic ecosystem.
The integration with CCTP V2 additional enhances this improve by facilitating quick, safe, and environment friendly cross-chain USDC transfers throughout supported blockchains.
Scheduled to begin on May 6, 2025, the transition will pause bridging exercise on the Sonic Gateway between Ethereum and Sonic for about a week.
During this time, Circle will assume possession of the bridged USDC contract, enabling the change to native USDC with out requiring consumer intervention.
Once accomplished, native USDC can be absolutely operational, promising improved liquidity and a higher consumer expertise throughout the Sonic community.
Sonic (S) value forecast
Sonic (S) has been locked in a consolidation part for the previous 48 days, encountering resistance at key technical ranges such because the VWAP SR, 0.618 Fibonacci degree, and the worth space excessive.
Trading quantity has remained constantly low, reflecting a lack of robust momentum or conviction amongst market members.
The present value of $0.5226 sits close to the midpoint of this vary, making it a pivotal degree for figuring out the following transfer.
A profitable transition to native USDC may spark elevated adoption and liquidity, probably pushing the value above the established resistance zone.
Historically, such upgrades to native stablecoins have bolstered blockchain ecosystems by attracting extra customers and builders, although value impacts rely on broader market dynamics.
Conversely, any setbacks or delays within the transition may erode investor confidence, risking a drop beneath the midpoint towards decrease assist ranges.
Volume will play a crucial position in signalling the route of any breakout, with a surge alongside a transfer above resistance suggesting a bullish pattern.
Should this situation unfold, Sonic (S) may intention for its earlier all-time excessive of $1.03, providing a potential 97% achieve from its present value.
On the flip aspect, a breakdown beneath the vary, particularly with heightened quantity, may see the value retest its all-time low of $0.3596, a decline of roughly 31%.
Investors ought to preserve a shut eye on quantity and value behaviour round these key ranges because the USDC transition unfolds to evaluate the market’s response.
