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Sonic (S) price prediction: Can native USDC launch on May 6 ignite a breakout?

  • Sonic is set to upgrade to native USDC and integrate with CCTP V2 for better liquidity and experience.
  • Sonic (S) price, currently at $0.5226, may hit $1.03 or fall to $0.3596 after the upgrade.
  • A successful transition could spark increased adoption and liquidity, potentially pushing the S price higher.

Sonic (S), the native token of the Sonic blockchain, has been trading in a tight range for the past 48 days, with investors eagerly awaiting the upcoming transition from bridged USDC to native USDC.

This transition, scheduled to begin on May 6, 2025, is expected to bring significant changes to the Sonic ecosystem, potentially impacting the price of Sonic (S).

As the market remains in a state of anticipation, understanding the implications of this transition and the current technical setup is crucial for predicting the future price movement of Sonic (S).

The upcoming bridged USDC to native USDC transition on Sonic

Bridged USDC, known as USDC.e, is a version of the widely used stablecoin USDC that has been bridged from another blockchain to the Sonic network.

This bridged form has been functional but carries limitations like potential liquidity fragmentation and dependency on third-party bridging mechanisms.

The shift to native USDC, issued directly by Circle on the Sonic blockchain, is designed to overcome these challenges and streamline operations.

Native USDC is fully regulated, backed by reserves, and redeemable on a 1:1 basis for US dollars, offering a robust and trustworthy stablecoin option.

It also introduces institutional on/off-ramps via Circle Mint, enabling eligible businesses to seamlessly engage with the Sonic ecosystem.

The integration with CCTP V2 further enhances this upgrade by facilitating fast, secure, and efficient cross-chain USDC transfers across supported blockchains.

Scheduled to start on May 6, 2025, the transition will pause bridging activity on the Sonic Gateway between Ethereum and Sonic for about a week.

During this time, Circle will assume ownership of the bridged USDC contract, enabling the switch to native USDC without requiring user intervention.

Once completed, native USDC will be fully operational, promising improved liquidity and a better user experience across the Sonic network.

Sonic (S) price forecast

Sonic (S) has been locked in a consolidation phase for the past 48 days, encountering resistance at key technical levels such as the VWAP SR, 0.618 Fibonacci level, and the value area high.

Trading volume has remained consistently low, reflecting a lack of strong momentum or conviction among market participants.

The current price of $0.5226 sits near the midpoint of this range, making it a pivotal level for determining the next move.

A successful transition to native USDC could spark increased adoption and liquidity, potentially pushing the price above the established resistance zone.

Historically, such upgrades to native stablecoins have bolstered blockchain ecosystems by attracting more users and developers, though price impacts depend on broader market dynamics.

Conversely, any setbacks or delays in the transition could erode investor confidence, risking a drop below the midpoint toward lower support levels.

Volume will play a critical role in signalling the direction of any breakout, with a surge alongside a move above resistance suggesting a bullish trend.

Should this scenario unfold, Sonic (S) could aim for its previous all-time high of $1.03, offering a potential 97% gain from its current price.

On the flip side, a breakdown below the range, especially with heightened volume, might see the price retest its all-time low of $0.3596, a decline of roughly 31%.

Investors should keep a close eye on volume and price behaviour around these key levels as the USDC transition unfolds to assess the market’s response.

The post Sonic (S) price prediction: Can native USDC launch on May 6 ignite a breakout? appeared first on CoinJournal.

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Nasdaq files to list 21Shares’ Dogecoin ETF

  • Asset manager 21Shares has submitted a proposal to list a spot Dogecoin exchange-traded fund (ETF).
  • Other firms, including Grayscale, Bitwise, and REX Shares, have also submitted applications for similar Dogecoin ETFs.
  • The SEC is currently said to be reviewing over 70 crypto ETF applications,

Asset manager 21Shares has submitted a proposal to list a spot Dogecoin exchange-traded fund (ETF), marking the latest in a series of filings aimed at bringing crypto-related investment products to the mainstream.

The Nasdaq Stock Market filed the necessary 19b-4 document on Tuesday, a required step in the Securities and Exchange Commission’s (SEC) ETF approval process.

The 19b-4 filing follows 21Shares’ initial S-1 registration submitted on April 9.

In the earlier filing, the firm disclosed an exclusive partnership with the House of Doge to create funds backed by the Dogecoin Foundation.

Once the SEC acknowledges the 19b-4, it will be published in the Federal Register, beginning the formal review period.

Other firms, including Grayscale, Bitwise, and REX Shares, have also submitted applications for similar Dogecoin ETFs.

The filings come as the SEC signals a departure from its previous approach to digital assets.

Leadership change at the SEC

The regulatory shift follows the appointment of Paul Atkins as SEC Chairman on April 21.

Nominated by President Donald Trump, Atkins has taken a critical view of the agency’s prior policies under the Biden administration and former Chairman Gary Gensler.

“Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered,” Atkins said last week.

Atkins’ confirmation, following a contentious Senate vote, is expected to accelerate decisions on a growing number of crypto-related proposals.

Acting Chair Mark Uyeda had previously delayed major rulings, and insiders attribute this to the lack of permanent leadership.

Crypto ETF backlog grows

The SEC is currently said to be reviewing over 70 crypto ETF applications, including products tied to major altcoins such as XRP, Solana, and Litecoin, as well as meme-themed and leveraged offerings.

Analyst Eric Balchunas called the ETF queue “wild,” noting the inclusion of everything from “Penguins, Doge, and 2x Melania.”

Bloomberg analysts in February estimated the highest probability of approval for Litecoin ETFs at 90%, followed by Dogecoin at 75%.

This recent push follows the agency’s approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July, both of which were seen as watershed moments for the crypto investment landscape.

As of the time of writing on Tuesday, the price of Dogecoin was up 0.4% to $0.1789.

The post Nasdaq files to list 21Shares’ Dogecoin ETF appeared first on CoinJournal.