Sonic TVL plunged 67% since May due to token plunge

Sonic's TVL has plunged 67% from $1.1 billion in May to $367 million after the termination of its market-making agreement with Wintermute. CEO Michael Kong acknowledged that TVL volatility is normal in the cryptocurrency space, but highlighted institutional growth plans, including U.S. ETFs and digital asset library. Experts warn that relying on market makers and earnings-driven incentives poses sustainability challenges, with Sonic's native token S already down 69% from its issue price. The network faces the challenge of making strategic choices between market maker support and organic decentralization.