Meme coin mania might be cooling off a bit, but Sonic is heating up the DeFi space! Leading projects on the Sonic blockchain have seen massive gains, with some soaring 4 to 10x in just the past week. So, what's the deal with Sonic, and which projects should you be keeping an eye on for potential gains? Let's dive in!

DeFi Infrastructure on Sonic

Sonic's DeFi ecosystem is buzzing, and here are a few key infrastructure projects that are making waves:

SHADOW ($SHADOW)

$SHADOW is the native token of Shadow Exchange, a decentralized exchange (DEX) built on Sonic. Think of it as the backbone currency for trading within the Sonic network. You can swap $SHADOW for other tokens like Sonic's main token $S, USDC.e, and x33.

Holding $SHADOW also lets you earn! You can deposit it into liquidity pools to earn LP rewards or convert it 1:1 into xSHADOW to participate in staking and governance voting, earning even more rewards.

SHADOW price performance over the last week.

Initially, there were 3 million $SHADOW tokens. Over the next 10 years, about 5 million more will be released, capping the total supply at 10 million.

The market cap of $SHADOW has exploded from around $5 million to over $41 million in a single week – a whopping 700% increase! It even peaked at $47.21 million. As the core token of Shadow Exchange, $SHADOW's success is tightly linked to the overall health and growth of the Sonic ecosystem.

SHADOW market capitalization growth.

x33

$x33 is created when you stake xSHADOW (converted from SHADOW). The ratio starts at 1:1 with $SHADOW but shifts in favor of $x33 over time due to accumulated rewards from fees, voting incentives, and rebases. At the end of each cycle, rewards are sold to boost the $x33:$SHADOW ratio.

Why use $x33? Here’s the breakdown:

• Automatic Voting: Smart algorithms handle voting for optimal returns.
• SHADOW Buybacks: Rewards are used to buy back $SHADOW, increasing its value.
• Auto-Compounding: Rewards automatically increase the $x33:$SHADOW exchange rate.
• Zero Fees: No costs for depositing, withdrawing, or compounding.
• Liquidity: Unlike staked $SHADOW, $x33 can be freely traded on the open market.
• Price Protection: $x33's value is tied to $SHADOW's redemption value, providing a price floor.

Basically, stake your $SHADOW and let $x33 handle the rest – effortless and automated!

$x33 has also mirrored the success of Sonic and Shadow Exchange, rocketing from a $3 million market cap to a peak of $15.53 million in a week – a 400% surge! It currently sits around $12.88 million.

x33 market capitalization growth.

EGGS ($EGGS)

Eggs Finance is another DeFi protocol built on Sonic. Users mint $EGGS by depositing $S (Sonic's main token) into their smart contracts. There's a 2.5% fee for minting, and the total supply of $EGGS is capped at 100 billion.

Eggs Finance official website interface.

Redeeming $EGGS for $S is straightforward. You can "sell back" $EGGS to the contract via the "Swap" tab on their dApp. This also incurs a 2.5% fee, and the burned $EGGS return the underlying $S to you. Fees are distributed to the contract, liquidity incentives, and the team, similar to minting.

Alternatively, you can redeem $EGGS via borrowing. Use your holdings as collateral to borrow $S and immediately default. This burns $EGGS and returns the $S collateral, minus a collateral premium and interest.

Users can even create a loop by using $EGGS as collateral to borrow more $S, minting more $EGGS, and potentially amplifying their holdings.

Eggs Finance looping mechanism diagram.

$EGGS hit a market cap of $7 million on its launch day and has continued to fluctuate upwards, currently sitting at $12.12 million, a nearly 58% increase in a week.

EGGS market capitalization growth.

Meme Coins on Sonic

Sonic also has its share of meme coin fun! This February, Sonic launched a meme coin competition on its chain.

GOGGLES

While Solana meme coins cool down and BNB Chain users are still figuring out which "broccoli" token to buy, GOGGLES is standing out on Sonic. It's gaining attention as a potential leading meme coin on the chain, building significant hype and community interest.

Could GOGGLES be the next big meme coin sensation? Keep an eye on the Sonic ecosystem for more meme-worthy developments!