Solana News: Sonic Chain Experiences Surge in TVL and Transactions Following $200 Million Airdrop, But Long-Term Prospects Remain Uncertain

In the world of cryptocurrency, Sonic Chain has recently made headlines with a significant surge in its Total Value Locked (TVL) and transactions. This surge has been fueled by a $200 million airdrop of its S tokens, but the chain’s long-term traction remains uncertain beyond the incentive phase. Here’s a closer look at what’s happening with Sonic Chain and its parent company, SonicLabs (also known as Fantom).

Sonic Chain’s TVL Soars 10x as Airdrop Fuels DeFi Boom

Sonic chain’s activity rebounded sharply in February after a slow start in January. A $200 million S token airdrop has driven massive engagement and TVL growth. However, the chain’s long-term traction remains uncertain beyond the incentive phase. SonicLabs, also known as Fantom, picked up speed with its launch in December. Transactions initially increased before dropping as much as 50% in late January, but the last two weeks saw a dramatic increase in on-chain activity, aligning with the network’s aggressive inducements.

Dave Portnoy Steps Away from Solana Meme Coin Frenzy

Dave Portnoy, founder of Barstool Sports, has criticized the Solana-based meme coin market, stating that it has become stale, crowded, and too infantile. He scrapped the release of his GREED3 token after launching it on Solana’s Pump.fun and making a quick profit. The meme coin space has seen a trading frenzy but Portnoy has now stepped away from it.

PayPal Expands PYUSD For Global Payments

PayPal is set to expand the reach of its USD-pegged stablecoin, PayPal USD (PYUSD). According to a Bloomberg report dated 26 February 2025, PayPal aims to offer PYUSD as an option for its more than 20 million small-to-medium sized merchants to pay vendors through its upcoming bill-pay product by the end of this year. The move is expected to facilitate cross-border payments without currency conversion friction and time delays. PayPal first launched PYUSD in August 2023 on the Solana and Ethereum blockchain.

Solana Set to Vote on Proposal to Reduce Inflation by 80%

Solana is set to vote on SIMD-0228, a proposal that aims to adjust SOL emissions based on staking participation. If approved, it could drastically reduce inflation from 4.5% to 0.87%. Smaller validators are concerned about reduced staking rewards, and the blockchain also faces pressure from an FTX token unlock on March 1.