Sonic, a burgeoning star in the DeFi construction space, now has a total value locked (TVL) of $2.2 billion.

That number cements Sonic’s status as a key player in the blockchain ecosystem. If you take a look at the top five lending protocols in that total mix, you see that they account for almost 67% of the value locked in these spaces.

Lending Protocols Anchor Sonic’s DeFi Momentum

Sonic derives a significant portion of its total value locked from the lending sector. Three of the highest-ranking protocols—Aave, Euler Finance, and Silo Finance—are lending-focused platforms, and together they account for nearly half of all the locked value within the entire network.

Silo Finance leads the pack with an impressive $558 million in TVL. Known for its isolated lending markets and efficient collateral structure, Silo has captured a broad swath of user activity, offering enhanced capital efficiency without compromising risk controls.

Aave, one of DeFi’s oldest and most reliable lending platforms, sends $401 million. Its showing on Sonic underscores the chain’s burgeoning significance as a strategic deployment hub for multi-chain DeFi protocols.

Euler Finance, with a smaller but still significant sum of $103 million, completes the trio of lending platforms. Despite its relatively modest size, Euler’s presence underscores the continued demand for decentralized and customizable risk-managed lending platforms.

The sum of these three protocols locks up $1.06 billion, which is almost 48% of Sonic’s total TVL. This concentration, of course, arises from the significant and growing demand among our users for borrowing and lending what we might call “real” assets in a secure, efficient, and liquid manner across protocols that operate at scale.

Top 10 Projects by TVL on Sonic

Total TVL on @SonicLabs stands at $2.2B, with the top 5 projects accounting for ~67%.

Notably, three of the largest — @SiloFinance, @Aave, and @eulerfinance — are focused on lending, combining for nearly half of Sonic’s total TVL.@SiloFinance —… pic.twitter.com/dB4ngqVUXh

— CryptoRank.io (@CryptoRank_io) May 26, 2025

Diverse Yield Protocols Show Strong Community Engagement

Although lending protocols hold the top position in Sonic’s total value locked ranking, yield-generating platforms are also doing quite well, giving us an ecosystem that is well beyond basic financial primitives.

A community-driven automatic market maker and investment platform, Beethoven X (@beets_fi), is a new protocol for DeFi with $268 million in total value locked (TVL). Due to its intelligent pool structure, it isn’t currently possible to do anything on the DeFi user level with Beethoven that doesn’t end with you earning yield. But if that sounds boring, consider how its pools are set up to yield indexes. This is a scene right now with Beethoven being the Apollo 11 mission of the DeFi movement.

Pendle Finance (@pendle_fi) has secured $139 million, gaining momentum through its distinctive take on yield tokenization, which allows users to trade on and speculate about future yield.
Veda Labs (@veda_labs) also joins the leaderboard with $123 million. This signals a strong demand for AI-powered strategies and predictive analytics in DeFi, which in turn signals that Sonic is attracting next-generation DeFi tools.
Stability DAO is at $79.5 million, Shadow on Sonic is at $79.2 million, and MEV Capital is at $75.2 million. Each is playing a distinct and notable role in the crypto community. Stability DAO is much like a liquidity provider. Shadow on Sonic is more involved in the design of a stablecoin system, which is more akin to monetary policy.

MEV Capital, however, is involved in what is now the distinct optimization of blockspace and designing strategies that ought to make Ethereum (and other MEV-prone systems) more resilient to MEV attacks.

These platforms illustrate that even though lending is Sonic’s core functionality, the protocol is drawing many different DeFi use cases. These include use cases that can barely be classified in the same realm as lending, like automated strategies, which can be better called “liquidation bots.” And there are also use cases that are mostly exploratory in nature and work in tandem with positional trading (i.e., “on-chain trading strategies”).

Sonic’s Growing Appeal for Builders and Users Alike

The increasingly total value locked and varied project participation emphasize Sonic’s swift change from a protocol for a niche set of users to a high-capacity blockchain for serious DeFi builders. The top 10 protocols alone account for most of the $2.2 billion TVL, suggesting a developer ecosystem that is both well-capitalized and trusted.

Interestingly, even lesser-known initiatives such as LlamaPay (@llamapay_io), which has a mere $38.5 million, are managing to find ways to expand within this bleak narrative. LlamaPay’s footprint points towards an even more niche segment of DeFi—payroll and streaming payment solutions—that seems intent on staking its own claim within the larger work-to-earn and DAO treasury management space.

Sonic appears well-positioned for future development and success. It has captured the attention of major protocols such as Aave and Pendle, while also fostering its own homegrown, innovative projects like Stability DAO and Shadow, that make the Sonic Layer 1 more functional and useful. Overall, this is a pretty big deal!

Existing under one roof are lending, liquidity management, yield farming, and even predictive finance. This is what Sonic is building, and it is quickly transforming into a comprehensive financial layer of Web3. Across L1 and L2 ecosystems, competition is intensifying. And so, I think Sonic’s strength in both TVL and protocol diversity will be two key metrics to watch in the months ahead.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

---

Filed under: Bitcoin - @ May 27, 2025 5:01 am