On January 7 at 20:00 Beijing time, the SONIC SVM token $SONIC officially launched on leading global trading platforms such as OKX, BYBIT, and BITGET, and will launch on Korea's top exchange Upbit tomorrow.
This feat of synchronously launching across multiple platforms has made $SONIC the market focus, and its performance post-launch has been eye-catching, with prices soaring over 5000%+ in a short period, drawing high attention both inside and outside the industry.
What made $SONIC explode with such strong market performance on its launch day? What unique advantages, ecological potentials, and market strategies are hidden behind this impressive achievement?
This article (January 6, 137Labs 'Web3's Next Massive User Growth Engine—SONIC SVM' X SPACE text condensation) will take you deep into the highlights and development logic of the $SONIC ecosystem, uncovering this hot star project comprehensively, from technical strength to community operation, from project positioning to market layout, and analyzing the future growth blueprint of $SONIC.
Q1: Can you talk about the reasons why 137Labs discovered and favored Sonic SVM in their investment research?
Ivan mentioned that 137Labs noticed Sonic SVM back in June and deemed it a project worth paying attention to. At that time, Sonic SVM had just completed its financing and launched the Odyssey event, aiming to attract users through this new user acquisition activity. As the first Rollup project under the Solana ecosystem, Sonic SVM possesses significant market potential. Any core project that launches first within a particular ecosystem will seize the market advantage and attract more users and traffic, thus increasing TVL.
By November, Sonic SVM announced that it had successfully attracted 1 million users through TikTok, which prompted 137Labs to elevate this project to a key focus. Ivan emphasized that projects that can obtain traffic through TikTok deserve significant attention, as TikTok's user base and its short video dissemination capabilities make any traffic obtained through the platform extremely valuable.
For example, at that time, Telegram turned users into Ton chain users and then converted them into Token holders through Ton chain's mini-games. Although the conversion process was complex, it successfully promoted the market value growth of the Ton chain. Therefore, any Web3 project that gains a massive user base through similar platforms has huge market potential.
Ivan believes that the current user base in the Web3 and Crypto fields is relatively small, while TikTok can bring hundreds of millions of users to these fields. If a platform can successfully attract such a large user base, its prospects and valuation will be very promising.
OneOne mentioned that when looking for Alpha projects, he typically focuses on those with innovative new technologies, narratives, or gameplay. He believes Sonic SVM is a typical project that meets this standard. In researching new projects, he discovered this new technology based on Solana—Light Protocol. This technology piqued his interest, and upon further research, he found that Sonic SVM is utilizing this new technology and has other innovative technical updates that meet his standards. OneOne emphasized that his focus is more on the project's technological innovation, especially the depth and uniqueness of the technical implementation, which is the main reason he became interested in Sonic SVM.
Q2: Sonic SVM is referred to as TikTok App Layer. How should this positioning be understood? Why is it considered comparable to TON? In which areas does Sonic have advantages or shortcomings? Where is the attractiveness of its business model reflected?
Ningning mentioned that 2025 may become the era of 'fat applications', and the mass adoption of Web3 will enter a new phase. He believes that in the past, when promoting the popularization of Web3, we often relied on some abstract infrastructure, such as DID or account abstraction, but these did not directly lead to user conversion. The problem is that ordinary users do not have as strong a demand for decentralization and privacy as the industry expects; they are more concerned about how to conveniently enter the Web3 world and enjoy high returns on-chain. Therefore, user acquisition in Web3 must not only address technical barriers but also simplify the onboarding process for users.
In this context, Ningning emphasized that Sonic SVM's success in attracting users through TikTok is a key strategic move. TikTok has a large and high-quality young user base, especially in North America and Europe, where users are very friendly towards Web3 and cryptocurrencies. Compared to Telegram, TikTok's user base is of higher quality and more accepting of cryptocurrencies and other Web3 applications. Sonic SVM's choice to attract users through TikTok is a keen market opportunity, and positioning itself as the 'TikTok chain' is very appropriate as it can find target users in the largest traffic pool.
Technically, Sonic SVM functions as a Layer 2 based on Solana, inheriting Solana's high TPS and concurrency characteristics while maintaining efficient performance. Although Sonic SVM does face certain centralization issues as an L2, Ningning believes these issues are not important to users, who are more concerned about on-chain security, data transparency, and verifiability—qualities that Sonic SVM can provide. Users are more focused on entering the Web3 world through convenient methods (such as one-click connection via TikTok accounts) and participating in high-yield DeFi applications.
Ningning also emphasized that Sonic SVM's business model reflects a very successful 'product-market fit.' By simplifying the user onboarding process and providing high-value assets on-chain, Sonic SVM offers unique appeal to Web3 users. Compared to traditional financial products, this has clear advantages, as Web3 can provide high returns and unparalleled asset types. Ningning believes that Sonic SVM's positioning and user acquisition strategy fully demonstrate the attractiveness of its business model.
Ivan conducted an in-depth analysis from a business perspective on why Sonic SVM is referred to as the 'TikTok App Layer' and its comparison with TON.
Similarities between Sonic SVM and TON:
First of all, Sonic SVM and TON share a common foundation, as they both have large social media user bases behind them. Sonic SVM is backed by TikTok, while TON is supported by Telegram. According to data from 2024, TikTok has 1.58 billion monthly active users, while Telegram has 950 million. Both platforms have a vast user base, providing significant potential for promoting Web3 and cryptocurrencies. Additionally, the teams of these two projects have close ties to their respective social platforms. TON is led by the founding team of Telegram, while the founders of Sonic SVM have experience with ByteDance (the parent company of TikTok). Furthermore, the Sonic SVM team has a strong collaborative relationship with the Solana Foundation and the Solana ecosystem.
Secondly, both Sonic SVM and TON utilize mini-games as a user acquisition strategy. TON previously attracted users through the 'Tap to Earn' game, while Sonic SVM adopts a similar approach by leveraging mini-games and other content to draw users into the Web3 world.
Thirdly, both have social platform identity verification and wallet recovery; both can generate login information and perform wallet recovery through social media platforms, simplifying the user onboarding and operation process, enhancing user convenience.
Differences between Sonic SVM and TON:
First, there is the dissemination capability of short videos; compared to Telegram, TikTok's short video content is more powerful and has a higher virality. Studies show that the conversion rate of short video users is 2.2 times that of text content or even higher. Therefore, TikTok provides a more promising dissemination platform for Sonic SVM.
The second is the difference in user value. TikTok's user base primarily comes from North America, Europe, and the Asia-Pacific region, where users have stronger purchasing power. In contrast, Telegram's user base is more from Eastern Europe, Southeast Asia, and Africa, where users have weaker purchasing power. Additionally, TikTok's higher proportion of young users has a higher conversion rate, especially in marketing promotions, where the conversion efficiency can reach 70%. Conversely, young users account for 19% of Telegram's user base, resulting in relatively low conversion efficiency. Regarding ARPU (Average Revenue Per User), TikTok's ARPU is $11.7, while Telegram's ARPU is only $1, with a difference of over 10 times. In terms of ARPPU (Average Revenue Per Paying User), the gap is even more significant, indicating that TikTok's user commercial value is significantly higher than Telegram's. Furthermore, regarding data authenticity, TikTok requires users to undergo KYC verification, while Telegram allows non-KYC users to use its platform.
The third aspect is the different traffic platforms; while Telegram is currently the main platform for early user acquisition in cryptocurrency projects, TikTok is just getting started as a traffic platform and has significant development space. TikTok's massive traffic pool and young, high-paying user base provide Sonic SVM a huge potential market. Meanwhile, the TON chain, as an emerging project, started later, and its on-chain activity and ecosystem projects are still developing, while Solana's ecosystem is already very mature. As a Layer 2 solution for Solana, Sonic SVM can seamlessly integrate into Solana's ecosystem, benefiting from its mature technical support and project resources.
In conclusion, Sonic SVM's business model is highly attractive; for cryptocurrency projects, user acquisition and payment capability are crucial. Sonic SVM has immense user conversion potential through TikTok's user base, especially its young users with high payment ability. The payment capability and willingness of TikTok users enable Sonic SVM to attract more user funds, thereby driving on-chain activities and increasing TVL.
Moreover, users not only need to enter but also bring funds to create a pool of liquidity and value for Sonic SVM. Through TikTok, a high-conversion platform, Sonic SVM is expected to attract a large amount of funds, further promoting the prosperity of its DeFi, GameFi, and other ecosystems.
Compared to TON, Sonic SVM, through its combination with TikTok, can better align Web3 technology with user needs, particularly in terms of user conversion and payment capability. Therefore, Sonic SVM can not only achieve user growth but also promote the popularization of Web3 applications.
Q3: If a wallet is bound to a social media account, is there a risk that the wallet could be stolen if the social media account is hacked?
Ivan pointed out that wallets bound to social media are commonly referred to as account abstraction (AA) wallets. While this approach simplifies the user experience, it may also introduce some risks. Users do not directly control their keys; instead, they are hosted by social media platforms or other third parties. This means that even if a social media account is hacked, attackers cannot directly access the private key. The only action an attacker can take is to transfer the assets in the account. However, if a user promptly changes the password of their social media account and enables two-factor authentication, then even if the account is hacked, a quick response can protect the account.
Ivan mentioned that if users have not set up two-factor authentication, and the attacker has already stolen their social media account, the best approach is to immediately change the password and log out of all other devices. This way, the attacker cannot continue to operate the account. Enabling two-factor authentication is one of the most effective preventative measures, significantly increasing the difficulty of account theft; even if the password is leaked, they still cannot log into the account.
Of course, the emergence of such risks is also closely related to the security of the platform itself. If the platform fails to effectively ensure the security of user accounts, there is indeed a possibility of large-scale account theft. However, if the platform prioritizes security and strengthens protective measures, such risks can be controlled.
Q4: What key innovations are present in SonicSVM's technical architecture? What are the core features of HyperGrid and HSSN? How does Sonic's technical solutions differ from Ethereum Rollup? Can you summarize the essence of HyperGrid in one sentence?
OneOne mentioned that the technical architecture of SonicSVM can be understood by drawing parallels with Ethereum's Layer 2 solutions, but it is not a Layer 2 solution for Solana. Unlike Ethereum's Layer 2 (such as Optimism and Arbitrum), SonicSVM's technical innovation lies in its bi-directional synchronization mechanism. Ethereum's Layer 2 synchronizes states in a unidirectional manner; they sync states to the Ethereum main chain, but the main chain's states do not write back to Layer 2. In contrast, one of HyperGrid's core technologies—HyperGrid Shared State Network (HSSN)—achieves bi-directional synchronization, meaning that Solana's states can synchronize to the Sonic chain while Sonic's states can also synchronize back to Solana, enabling tighter collaboration between the two chains.
Another innovative feature of HyperGrid is its grid structure. This grid allows multiple nodes to perform state synchronization in parallel while improving system throughput through state compression and Byzantine fault tolerance mechanisms. Specifically, by increasing the number of grid nodes, SonicSVM can handle more state synchronization requests, thus enhancing the system's processing capability, which is crucial for improving throughput.
In addition to the grid structure and throughput enhancement, HyperGrid's technical framework is also compatible with the Solana Virtual Machine (SVM). This ensures that applications originally on the Solana chain can be seamlessly migrated to the Sonic chain. This technical innovation guarantees that applications running on the Sonic chain can interoperate with applications on the Solana chain, providing an 'equivalence' similar to Ethereum Layer 2—meaning that native Solana chain applications can run on the Sonic chain without code modification.
Finally, OneOne emphasized that SonicSVM's grid structure allows it to surpass Solana itself in speed, providing a performance advantage. This bi-directional synchronization and high throughput design enables SonicSVM to exhibit differentiated advantages compared to Ethereum Rollup in technical aspects. Overall, the essence of HyperGrid can be summarized as achieving cross-chain interoperability and higher throughput through efficient state synchronization and grid architecture.
Ivan first introduced the similarities between Hypergrid and Ethereum Rollup. Hypergrid is referred to as 'Grid' because it consists of multiple grids, each of which can be viewed as a Rollup, similar to Ethereum Rollup or Solana's Layer 2 solutions. Each Grid has a peer relationship with other Grids and can all be viewed as Layer 2. Ethereum's Layer 2 (such as Optimism and Arbitrum) relies on the Ethereum main chain to complete consensus, state availability, and settlement, while Hypergrid, similar to Solana, entrusts these functions to the Solana main chain.
In this regard, Hypergrid manages and verifies states through the HyperGrid Shared State Network (HSSN). Compared to Ethereum Rollup, Hypergrid's state generation and sorting process is similar; both complete sorting in the Grid and generate state hashes before submitting the information to HSSN. HSSN is responsible for uniformly managing these sorted transactions and states, ultimately submitting them to Solana for final confirmation. Once confirmed by Solana, the entire transaction becomes immutable.
To explain how HSSN works, Ivan used a simple analogy: Solana is like a 'club' that often faces various issues due to busy operations. To alleviate the burden on Solana, HSSN suggests that Solana opens several 'branches', meaning each Grid is like a branch that handles local transactions and state sorting. Each branch (Grid) generates a hash of the transaction's state, which is then submitted to HSSN, which performs global sorting and unified accounting before submitting all data to Solana for final confirmation. This mechanism not only alleviates the pressure on the Solana main chain but also improves the overall system's efficiency through decentralized processing.
Furthermore, the ZK validation mechanism of HSSN further optimizes the system's performance. Through the ZK validation of the Light Protocol, Hypergrid can reduce Solana's load and avoid potential risks such as DoS attacks. At the same time, ZK validation can also accelerate the final confirmation of states, ensuring that transactions are irreversible.
In terms of interoperability, Ivan emphasized the compatibility between Hypergrid and Solana. Hypergrid not only allows seamless migration of ecological projects on the Solana chain to Hypergrid but also enables all assets and data on the Solana chain to migrate seamlessly to Sonic SVM. This means that assets and data can be directly transferred to the Sonic chain without relying on third-party cross-chain bridges. Therefore, Hypergrid is very strong in terms of interoperability between chains, enabling seamless flow of assets and data between different chains.
At the same time, Grids can achieve seamless connections with each other, allowing assets and data to be transferred between different Grids without any barriers. Specifically, this means that the assets and data you have on one Grid can be directly migrated to other Grids or other parts of the Sonic chain, ensuring the smoothness and consistency of cross-Grid and cross-chain operations.
Ivan further explained that the global sorting mechanism of HSSN ensures consistency throughout the system, avoiding state conflicts and forks. The introduction of global sorting ensures that all transactions conducted within Hypergrid maintain consistency, preventing the common conflicts or forks found in distributed systems, thus further enhancing the reliability and stability of transactions.
Finally, Ivan summarized the technical characteristics of Hypergrid. In technical terms, Hypergrid is similar to Ethereum Rollup in terms of sorting mechanism, ZK proof, and finality confirmation. The sorting methods of the Rollup layer and Grid layer are similar; each Grid in Hypergrid will complete transaction sorting and generate corresponding states. The method for generating ZK proofs is also similar. Regarding finality confirmation, both Hypergrid and Ethereum Rollup rely on the mainnet (Solana and Ethereum) to confirm the finality of transactions, ensuring that transactions are immutable.
However, there are significant differences between Hypergrid and Ethereum Rollup in terms of global sorting and interoperability. Ethereum Rollup relies on the Ethereum main chain to complete sorting, while Hypergrid completes global sorting through the HSSN system, with finality confirmation handled by Solana. Unlike Ethereum Rollup, Hypergrid does not rely on Solana for sorting; it only relies on Solana for finality confirmation after sorting is completed, thereby reducing dependence on the Solana main chain and enhancing flexibility.
Secondly, Hypergrid and Ethereum Rollup also differ in terms of interoperability. The interoperability among Ethereum Rollups is often complex, involving chains like OP, Arbitrum, Base, etc. The transaction consistency and asset consistency between these chains are not perfect, thus relying on cross-chain bridges to achieve data and asset migration. In contrast, Hypergrid can achieve native interoperability between chains, allowing assets and data to be seamlessly migrated between Grids without relying on third-party cross-chain bridges. This gives Hypergrid a significant advantage in cross-chain interoperability.
In summary, Ivan expressed that this is a ZK version, comparable to OP super chain, which inherently has a decentralized sorting network within its SVM modular execution layer.
Q5: Besides the technical aspects, what other highlights of SonicSVM are worth paying attention to? For example, ecosystem development, supporting investment institutions, the latest operational data, or recent activities?
Ningning first pointed out that one of the biggest highlights of SonicSVM is its success in attracting a large number of real users, especially on TikTok and similar platforms. This strategy involved collaborating with TikTok to host an event that directed millions of TikTok users to its platform. Although most of these users were attracted through airdrops or points, how successfully they can convert to in-depth Web3 users, and how to transition from 'shallow' Web2 users to 'deep' Web3 users, is worth paying attention to. Ningning believes that such attempts are worth continuous observation for their conversion effectiveness.
Next, Ningning mentioned that SonicSVM has made some innovations in user incentives. It has drawn inspiration from last year's Telegram mini-program games and upgraded them. Through this approach, developers and project teams can create mini-program games based on SonicSVM's framework. For most TikTok users, their interests may be more concentrated in entertainment, cultural consumption, and IP products rather than the financial investment interests typical of native Web3 users. This difference suggests that products within the SonicSVM ecosystem may lean more towards entertaining content, such as casual mini-games and IP-based NFT consumption.
Ningning further pointed out that SonicSVM's ecosystem may differ from traditional Web3 ecosystems, particularly when compared to DeFi applications or Layer 2 solutions. Its user base is more focused on entertainment and cultural consumption, especially catering to the needs of Generation Z. Similar consumption trends are already very popular in the Chinese market, where young people are keen on anime and gaming-related consumerism. Therefore, SonicSVM may attempt to combine NFTs and Web3 IP with traditional Web2 IP for commercialization and IPization, attracting young people to consume.
Finally, Ningning concluded that SonicSVM's approach is significantly different from traditional Layer 2 solutions. Traditional Layer 2 typically focuses on how to enhance Web3 economic opportunities through technical means, attracting investors and traders. However, SonicSVM's goal is more centered on how to shift the ecological development of Web3 toward younger demographics, promoting entertainment and cultural consumption to attract users to the chain.
Ivan's responses elaborated on the highlights of SonicSVM in terms of user growth, investment institution support, ecosystem development, and future prospects. First, he emphasized that SonicSVM attracted nearly 8.7 million registered wallet users even before launching its mainnet and without any incentive mechanisms, among which 2 million came from TikTok. This data indicates that SonicSVM can successfully guide users from traditional Web2 platforms to Web3. Furthermore, among the four Mini Games launched by SonicSVM, the largest game had 2.1 million monthly active users on TikTok, showcasing the platform's appeal and potential.
In terms of investment support, Ivan mentioned that SonicSVM has received funding from several important institutions, including Bitkraft, a top gaming industry fund in North America with nearly a billion dollars in managed assets, further demonstrating SonicSVM's potential in the gaming sector. At the same time, Galaxy Digital, as an important infrastructure solution provider in the Solana ecosystem, also supports SonicSVM, showing the project's close connection with the Solana ecosystem. Additionally, SonicSVM has also received investment from OKx and Mirana Ventures (Bybit's affiliate), with these institutions' financial backing laying a solid foundation for SonicSVM's future development.
In terms of personal investment, SonicSVM received angel investments from Lily Liu, the president of the Solana Foundation, along with multiple core members of the Solana ecosystem, which has further strengthened SonicSVM's ties to the Solana ecosystem and provided more resources and support for its future development.
Ivan further analyzed the future development potential of SonicSVM. He believes that SonicSVM is not just a GameFi or DeFi chain; its biggest highlight is its SVM equivalence, meaning that any project on Solana can be seamlessly migrated to SonicSVM, greatly facilitating the migration and integration of Solana ecological projects. This feature will attract developers and users from the Solana ecosystem, providing strong momentum for the expansion of SonicSVM's ecosystem.
Additionally, Ivan mentioned that in the future, SonicSVM may give rise to platforms similar to pump.fun, encompassing decentralized exchanges, lending protocols, perpetual contracts, and other products. He believes this will make SonicSVM’s ecosystem richer and more diverse, breaking through the traditional frameworks of gaming and financial applications.
Finally, Ivan specifically mentioned that with some IP and meme projects on TikTok, such as MooDeng, achieving nearly a billion dollars in market value, SonicSVM may become an ideal platform for these projects. He believes that SonicSVM can convert TikTok users into Web3 users, creating a Web3 ecosystem that not only includes entertainment elements but also allows users to participate in high-yield activities like DeFi. Through this platform, users will gain more profit opportunities in the Web3 world, presenting enormous market potential and innovative opportunities.
Q6: What highlights are present in the tokenomics design of SonicSVM? In terms of token distribution and circulation models, what aspects can attract investor attention?
OneOne mentioned the collaboration between SonicSVM and TikTok, which will directly impact the design of the tokenomics. He believes that the TGE of SonicSVM initially distributed a portion of tokens to TikTok users; this strategy can ensure continuous participation from future TikTok users, further promoting platform activity and token circulation. If the TikTok user base can remain active, SonicSVM has the potential to provide a sustained participation method, which will be reflected in subsequent token distributions, attracting more TikTok users into the Web3 ecosystem.
Secondly, OneOne pointed out a potential user engagement possibility by drawing an analogy to the Pump.fun project. Pump.fun, as a Web3 platform, lacks regulatory mechanisms, leading to non-compliant live streaming content. In contrast, TikTok has strict content review mechanisms that can effectively prevent these issues. OneOne believes that SonicSVM can utilize TikTok's live streaming functionality to transfer content that cannot be regulated on the Pump.fun platform to TikTok, ensuring compliance and enhancing the platform's credibility and user experience.
Thirdly, OneOne further analyzed the unique advantages brought by SonicSVM’s cooperation with TikTok. He believes that this cooperation and the traffic from TikTok can lower the barriers for user participation in the project; for example, users can conduct on-chain transactions directly on TikTok. Additionally, collaborating with TikTok can yield significant externality effects; as a large number of users from TikTok flow into SonicSVM, the platform will naturally come with traffic, and this externality effect will attract the attention of exchanges. Many exchanges favor projects that possess user traffic, as this translates to more transaction activities and fee income. For instance, projects like the TON chain, which have a large user base, can gain greater visibility on exchanges and list more tokens on their platforms. This externality effect is crucial for attracting exchange support and enhancing token liquidity.
Q7: How do you view the future market value development potential of SonicSVM? What valuation expectations can you share?
Ningning believes that the concept of consumer chains may see a significant market value increase in 2024. He stated that traditionally, technologies like ZK Rollups and projects backed by top-tier investment institutions are often considered capable of achieving market values in the billions or even tens of billions. However, Ningning pointed out that despite the attention on ZK technology and related projects, market performance has not fully met expectations. In contrast, some consumer chain projects (such as SonicSVM and the Abstract of the Fat Penguin) that are undervalued by the primary market may unexpectedly perform well in the secondary market. This will expand the concept of consumer chains from the primary market to the minds of secondary market investors. Therefore, Ningning believes that as market recognition of consumer chains gradually increases, SonicSVM's market value may see a significant boost.
In terms of valuation expectations, Ningning boldly predicts that after Q1 2024, SonicSVM's market value will reach at least $3 billion, reflecting his optimistic expectations for the project's future development potential.
Ivan proposed a detailed valuation method for the future market value development of Sonic SVM, focusing on the conversion of deposited funds and active funds. His valuation model is based on TikTok's monthly active user count (MAU) and current cryptocurrency penetration rate, estimating the number of potential users who have yet to engage with the crypto world. By multiplying these users with SonicSVM's high conversion rate and user entry funds, Ivan believes SonicSVM can derive a large amount of funds from TikTok users and effectively convert these funds through mechanisms like Mini Games.
Formula: Deposited funds = TikTok's MAU × (1 - crypto penetration rate) × Sonic SVM conversion rate × User entry funds
Ivan pointed out that the conversion rate of SonicSVM's Mini Games is much higher than that of other platforms (e.g., Mini Games on Telegram and new user conversion rates on exchanges), allowing SonicSVM to quickly attract a large number of Web3 users and bring significant deposited funds to the platform. This deposited fund can be understood as TVL but is greater than TVL since not every user will put money into Dex or ecological projects. Moreover, SonicSVM not only relies on the accumulation of funds but can also activate on-chain economic activities by converting these funds into active funds. Ivan used gas fee consumption as an example to explain this, indicating that active users will drive transactions and protocol usage, thus creating liveliness for the on-chain ecosystem.
Furthermore, Ivan proposed a metric called Return on Equity, analogous to Solana's performance, indicating that once these deposited funds are converted into active funds, they will generate higher transaction volumes and activity through the platform, ultimately reflecting in market value growth. The final valuation formula is: Deposited funds × ROE = Generated fees, minus costs, and then multiplied by PE. Ivan believes that SonicSVM's market value has enormous upward potential.
Ivan also emphasized SonicSVM's uniqueness compared to other projects. He believes that although many KOLs may conduct valuation comparisons, such benchmarks are not very meaningful because SonicSVM is the only Web3 project operating on a TikTok user base. The combination of TikTok and Web3 grants SonicSVM an irreplaceable position among similar projects, which is a significant driving force for its market value growth.
Finally, Ivan added that SonicSVM has advantages in technological innovation, especially in achieving gasless and no-approve operation methods. With this design, users do not need to engage in cumbersome blockchain operations, such as paying gas fees or confirming wallet operations, making the Web3 experience smoother and more akin to Web2 applications, significantly lowering the user entry barrier and enhancing platform user stickiness.
When answering questions about SonicSVM's future market value development potential, OneOne first raised an important point: TVL is not applicable to all types of projects, especially public chain projects. He explained that public chains serve as platforms that not only carry single applications like DeFi but can accommodate various different applications and businesses. Therefore, relying solely on TVL to assess the value of a public chain is not entirely fair, and a more suitable valuation method should be adopted—PEG. OneOne pointed out that the PEG valuation method predicts market value by assessing the on-chain growth rate of the project over a specific period in the future. This approach not only focuses on changes in TVL but also includes multiple dimensions such as user growth and on-chain activities. For platform projects like SonicSVM, PEG can comprehensively consider growth potential across multiple fields.
Furthermore, OneOne discussed the difference between FDV and circulating market value, emphasizing their roles in valuation. FDV is primarily used to predict the market value of a project after full issuance of tokens, reflecting the overall market potential of the project. In contrast, circulating market value reflects the current market expectations of the project and is a manifestation of investor confidence in the project and its future potential. OneOne pointed out that circulating market value is often related to the market dream rate; some projects may achieve high market value based on appealing stories or concepts, but their actual performance may not match this valuation.
OneOne also particularly emphasized that valuation methods need to be flexibly adjusted across different stages and projects. For instance, short-term token liquidity and market expectations can be calculated using the Fisher equation, and for projects like SonicSVM, short-term valuations should also consider token liquidity and market response. He believes that in the short term, PEG valuation can be combined and adjusted according to changes in market expectations, enabling more accurate predictions of SonicSVM's market value potential.
In summary, OneOne believes that for projects like SonicSVM, the most reasonable valuation method is to use PEG and estimate it in conjunction with market expectations for future growth. He suggests that by setting upper and lower limits, more precise predictions for market value expectations can be provided. At the same time, he also pointed out that as SonicSVM launches more content related to meme culture, its valuation model may need to be adjusted to accommodate the volatility brought by this cultural attribute. Overall, OneOne's response emphasizes the flexibility and specificity of valuation methods, particularly in public chain and platform projects, where a comprehensive and adaptable valuation strategy is crucial.
Conclusion
With the impressive performance of $SONIC following its launch and the upcoming Korean listing, we believe that more practitioners, developers, and ecological projects will join SONIC SVM. In the future, as Sonic SVM continues to expand its ecological landscape, optimize its technical architecture, and deeply explore user value, we have reason to expect it will spark more innovative waves in the Web3 field. Whether in its unique positioning as the 'TikTok chain' or in breakthroughs in technology and business models, Sonic SVM has already made an indelible mark in the industry. Let's look forward to how this dazzling new star continues to write its legendary chapter in the future of the crypto world.
