At 20:00 Beijing time on January 7, the SONIC SVM token $SONIC was officially launched on the world's leading trading platforms such as OKX, BYBIT, BITGET, and will be launched on South Korea's top exchange Upbit tomorrow.
This feat of simultaneous launch on multiple platforms has made $SONIC the focus of the market, and its performance after the launch has been even more eye-catching. The price has soared in a short period of time, with the highest increase exceeding 5000%+, attracting great attention from both inside and outside the industry.
What made $SONIC explode with such a strong market performance on the day of its launch? What unique advantages, ecological potential and market strategy are hidden behind this outstanding performance? This article (January 6, 137Labs " Web3's next massive user growth engine - SONIC SVM" X SPACE text precipitation) will take you to deeply interpret the ecological highlights and development logic of $SONIC, from technical strength to community operation, from project positioning to market layout, comprehensively reveal this hot star project, and analyze the future growth blueprint of $SONIC for you.
Q1
Can you talk about why 137Labs discovered and was optimistic about Sonic SVM during investment research?
Ivan mentioned that 137Labs noticed Sonic SVM as early as June and believed that it was a project worthy of attention. At that time, Sonic SVM had just completed financing and launched the Odyssey event, with the goal of attracting users through this new activity. As the first Rollup project in the Solana ecosystem, Sonic SVM has important market potential. Any core project that is first launched in a certain ecosystem will seize the market opportunity, gain more users and traffic, and also increase TVL.
It was not until November that Sonic SVM announced that it had successfully attracted 1 million users through TikTok. This news made 137Labs decide to upgrade this project to a key focus. Ivan particularly emphasized that projects that can obtain traffic through TikTok deserve great attention, because TikTok's user base and the dissemination ability of its short videos make any traffic obtained through the platform extremely valuable.
For example, at that time, Telegram converted users into Ton Chain users, and then converted them into Token holders through Ton Chain’s mini-games. Although the conversion process was complicated, it successfully promoted the growth of Ton Chain’s market value. Therefore, any Web3 project that obtains a huge number of users through similar platforms has huge market potential.
Ivan believes that the current user scale of Web3 and Crypto is relatively small, and TikTok can bring hundreds of millions of users to these fields. If a platform can successfully attract so many users, its prospects and valuation will be very impressive.
OneOne mentioned that when he is looking for Alpha projects, he usually focuses on projects with innovative new technologies, narratives, or gameplay. He believes that Sonic SVM is a typical project that meets this standard. When researching new projects, he discovered this new technology based on Solana - Light Protocol. This technology aroused his interest, and when he further studied it, he found that Sonic SVM was using this new technology, and in addition to Light Protocol, Sonic SVM also had other innovative technical updates that met his standards on the technical level. OneOne emphasized that his focus is more on the technical innovation of the project, especially the depth and uniqueness of the technical implementation, which is also the main reason for his interest in Sonic SVM.
Q2
Sonic SVM is called TikTok App Layer. How should we understand this positioning? Why is it considered to be comparable to TON? In comparison, in what aspects does Sonic have more advantages or disadvantages? What is the attractiveness of its business model?
Ningning mentioned that 2025 may become the era of "fat applications" and Web3's "mass adoption" will enter a new stage. He believes that in the past, when we promoted the popularization of Web3, we usually 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' demand for decentralization and privacy is not as strong as the industry expects. They are more concerned about how to easily enter the Web3 world and enjoy the high returns on the chain. Therefore, Web3 user acquisition not only needs to solve technical barriers, but also needs to simplify the user entry process.
In this context, Ningning emphasized that Sonic SVM's success in attracting users through TikTok is key to its strategy. TikTok has a large and high-quality young user base, especially in North America and Europe, who are very friendly to Web3 and cryptocurrency. Compared with Telegram, TikTok's user base is more high-quality and more receptive to Web3 applications such as cryptocurrency. Sonic SVM's choice to attract users through TikTok is a market opportunity it has keenly captured, and it is very appropriate to position itself as the "TikTok Chain" because it can find target users in the largest traffic pool.
Technically, Sonic SVM is like a Layer 2 based on Solana, inheriting Solana's high TPS and concurrency characteristics while maintaining efficient performance. Although Sonic SVM has a certain degree of centralization issues as an L2, Ningning believes that these issues are not important to users. Users are more concerned about the security, data transparency and verifiability of the chain, which Sonic SVM can provide. Users are more concerned about being able to enter the Web3 world in a simple way (such as one-click connection to a TikTok account) and participate in high-yield DeFi applications.
Ningning also emphasized that Sonic SVM's business model embodies a very successful "product-market fit". By simplifying the user access process and providing high-value assets on the chain, Sonic SVM provides a unique attraction for Web3 users. This has a clear advantage over financial products in the traditional financial world, as Web3 is able to provide high-yield and unparalleled asset types. Ningning believes that Sonic SVM's positioning and user acquisition strategy fully demonstrate the attractiveness of its business model.
From a business perspective, Ivan conducted an in-depth analysis of why Sonic SVM is called the "TikTok App Layer" and its comparison with TON.
Similarities between Sonic SVM and TON:
First of all, Sonic SVM and TON have a common foundation, and both have a huge social media user base behind them. Sonic SVM is backed by TikTok, while TON is backed by Telegram. According to data from 2024, TikTok has 1.58 billion monthly active users, while Telegram has 950 million monthly active users. Both platforms have a very large user base and have great potential for the promotion of Web3 and cryptocurrency. And the teams of these two projects are also closely connected with the social platforms behind them. TON is led by the founding team of Telegram, while the founder of Sonic SVM has experience with ByteDance (TikTok's parent company). In addition, the team of Sonic SVM also has a deep cooperative relationship with the Solana Foundation and the Solana ecosystem.
Second, both Sonic SVM and TON use mini-games as a means of attracting users. TON once attracted users through the "Tap to Earn" game, and Sonic SVM also adopted a similar approach, using mini-games and other content to attract users to join the Web3 world.
Third, both also have social platform identity authentication and wallet recovery. Both can generate login information and recover wallets through social media platforms, which simplifies the user's entry and operation process and improves user convenience.
The difference between Sonic SVM and TON:
The first is the spreadability of short videos. Compared with Telegram, TikTok's short video content is more spreadable and viral. Studies have shown that the conversion rate of short video users is 2.2 times or even higher than that of text content. Therefore, TikTok provides Sonic SVM with a more potential dissemination platform.
The second is the difference in user value. TikTok's user base mainly comes from North America, Europe and the Asia-Pacific region, where users have strong payment capabilities. In contrast, Telegram's user base is more from developing countries such as Eastern Europe, Southeast Asia and Africa, where users have weak payment capabilities. TikTok's high proportion of young user groups has a higher conversion rate, especially in marketing promotion, where the conversion efficiency of young users can be as high as 70%. Telegram's young users account for 19%, and the conversion efficiency is relatively low. As for the difference in ARPU (average revenue per user), TikTok's ARPU is $11.7, while Telegram's ARPU is only $1, a difference of more than 10 times. In terms of ARPPU (average revenue per paying user), the gap is even greater. This also shows that TikTok's user commercial value is significantly higher than Telegram. And for data authenticity, TikTok requires users to undergo KYC certification, while Telegram allows non-KYC users to use its platform.
The third is the difference in traffic platforms. Although Telegram is the main platform for early traffic flow of cryptocurrency projects, TikTok has just started as a traffic flow platform and has a large room for development. TikTok's huge traffic pool and young user groups with strong paying ability provide a huge potential market for Sonic SVM. As an emerging project, the TON chain started late, and the activity and ecological projects on the chain are still developing, while Solana's ecology is already very mature. As Solana's Layer 2 solution, Sonic SVM can seamlessly access Solana's ecosystem and enjoy its mature technical support and project resources.
Therefore, Sonic SVM's business model is very attractive. For cryptocurrency projects, user acquisition and payment capabilities are crucial. Sonic SVM has huge user conversion potential through TikTok's user base, especially its young user base with high payment capabilities. TikTok users' payment capabilities and willingness to convert enable Sonic SVM to attract more user funds, thereby driving the growth of on-chain activities and TVL.
In addition, users must not only come in, but also bring funds in to form deposited funds and liquidity to create higher value for Sonic SVM. Through TikTok, a high-conversion platform, Sonic SVM is expected to attract a large amount of funds, thereby promoting the prosperity of its DeFi, GameFi and other ecosystems.
Compared with TON, Sonic SVM can better connect Web3 technology with user needs through its combination with TikTok, especially in terms of user conversion and payment capabilities. Therefore, Sonic SVM can not only achieve user growth, but also promote the popularization of Web3 applications.
Q3
If the wallet is bound to a social media account and the social media account is stolen, is the wallet at risk of being stolen?
Ivan pointed out that wallets bound to social media are often called account abstraction (AA) wallets. Although this approach can simplify the user experience, it may also bring some risks. The user's key is not directly in their own hands, but is hosted by the social media platform or other third parties. This means that even if the social media account is stolen, the attacker cannot directly obtain the private key. The only thing the attacker can do is transfer the assets in the account. However, if the user can change the password of the social media account in time and enable two-factor verification, then even if the account is stolen, quick response can protect the account.
Ivan mentioned that if the user has not set up two-factor authentication and the attacker has already stolen the social media account, the best way is to change the password immediately and log out of all other login information on all devices. In this way, the attacker cannot continue to operate the account. Enabling two-factor authentication is one of the most effective preventive measures. It greatly increases the difficulty of account theft. Even if the password is leaked, it is still impossible to log in to the account.
Of course, the emergence of this risk is also closely related to the security of the platform itself. If the platform fails to effectively protect the security of user accounts, there is indeed a possibility of large-scale account theft. However, if the platform attaches importance to security and strengthens protective measures, then this type of risk can be controlled.
Q4
What are the key innovations in SonicSVM's technical architecture? What are the core features of HyperGrid and HSSN? How is Sonic's technical solution different 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 analogy with Ethereum's Layer 2 solution, but it is not Solana's Layer 2. Unlike Ethereum's Layer 2 (such as Optimism, Arbitrum, etc.), SonicSVM's technical innovation lies in its two-way synchronization mechanism. Ethereum's Layer 2 is one-way when synchronizing states, that is, they synchronize the state to the Ethereum main chain, but the state of the main chain will not be written back to Layer 2. One of HyperGrid's core technologies, HyperGrid Shared State Network (HSSN), realizes two-way synchronization, which means that Solana's state can be synchronized to the Sonic chain, and Sonic's state can also be synchronized back to Solana, which enables the two chains to work more closely together.
Another innovative feature of HyperGrid is its grid structure. This grid allows multiple nodes to synchronize states in parallel, while improving the system throughput through state compression and Byzantine fault tolerance. Specifically, by increasing the number of grid nodes, SonicSVM can handle more state synchronization requests, thereby improving the system's processing power, which is very important for improving throughput.
In addition to the grid structure and throughput improvement, HyperGrid's technical framework is also compatible with the Solana Virtual Machine (SVM). This allows applications originally on the Solana chain to be seamlessly migrated to the Sonic chain. This technological innovation ensures that applications running on the Sonic chain can communicate with applications on the Solana chain, providing "equivalence" similar to Ethereum Layer 2 - that is, applications on the native Solana chain can run on the Sonic chain without modifying the code.
Finally, OneOne emphasized that SonicSVM's grid structure makes it faster than Solana itself, giving it a performance advantage. This two-way synchronization and high-throughput design gives SonicSVM a technically differentiated advantage over Ethereum Rollup. In general, 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 called "Grid" because it consists of multiple grids (Grid), each of which can be regarded as a Rollup, similar to Ethereum Rollup or Solana's Layer 2 solution. Each Grid is on an equal footing with other Grids and can be regarded as Layer 2. Ethereum's Layer 2 (such as Optimism, Arbitrum) relies on the Ethereum main chain to complete consensus, state availability and settlement, while Hypergrid is similar to Solana and also entrusts these functions to the Solana main chain.
In this regard, Hypergrid manages and verifies the state through HyperGrid Shared State Network (HSSN). Compared with Ethereum Rollup, Hypergrid's state generation and sorting process is similar. The sorting is completed in the Grid and the state hash is generated, and then this information is handed over to HSSN. HSSN is responsible for the unified management of these sorted transactions and states, and finally hands them over to Solana for final confirmation. After Solana confirms, the entire transaction will be tamper-proof.
To explain how HSSN works, Ivan used a popular metaphor: Solana is like a "club", which often encounters various problems due to busy business. In order to reduce the burden on Solana, HSSN recommends that Solana open multiple "branches", that is, each Grid is like a branch, handling local transactions and status sorting. Each branch (Grid) will generate a status hash of the transaction and then hand it over to HSSN, which will then perform global sorting and unified accounting, and finally submit all data to Solana for final confirmation. This mechanism not only reduces the pressure on the Solana main chain, but also improves the efficiency of the entire system through decentralized processing.
In addition, HSSN's ZK verification (zero-knowledge proof) mechanism further optimizes the system's performance. Through Light Protocol's ZK verification, Hypergrid can reduce Solana's load again and avoid potential risks such as DoS attacks. At the same time, ZK verification can also speed up the final confirmation of the status and ensure that the transaction is irreversible.
In terms of interoperability, Ivan emphasized the compatibility between Hypergrid and Solana. Hypergrid not only enables ecological projects on the Solana chain to migrate seamlessly to Hypergrid, but also enables all assets and data on the Solana chain to migrate seamlessly to the Sonic SVM side. This means that assets and data can be directly transferred to the Sonic chain without the need for a third-party cross-chain bridge. Therefore, Hypergrid is very strong in inter-chain interoperability and can achieve seamless flow of assets and data between different chains.
At the same time, Grids can be seamlessly connected, which means that assets and data can be transferred between different Grids without any obstacles. Specifically, this means that your assets and data 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 HSSN's global sorting mechanism ensures the consistency of the entire system and avoids state conflicts and state forks. The introduction of global sorting makes all transactions in Hypergrid consistent, avoiding common conflicts or forks in distributed systems, thereby further improving the reliability and stability of transactions.
Finally, Ivan summarized the technical features of Hypergrid. On the technical level, Hypergrid is similar to Ethereum Rollup in terms of sorting mechanism, ZK proof, and finality confirmation. The sorting methods of the Rollup layer and the Grid layer are similar. Each Grid of Hypergrid will complete the transaction sorting and generate the corresponding status. The method of generating ZK proof is also similar. In terms of finality confirmation, both Hypergrid and Ethereum Rollup rely on the main network (Solana and Ethereum) to confirm the finality of the transaction and ensure that the transaction cannot be tampered with.
However, there are significant differences between Hypergrid and Ethereum Rollup in terms of global ordering and interoperability. Ethereum Rollup relies on the Ethereum main chain to complete the sorting, while Hypergrid completes global sorting through the HSSN system, and Solana is responsible for final confirmation. Unlike Ethereum Rollup, Hypergrid does not rely on Solana for sorting. It only relies on Solana for final confirmation after sorting is completed, thereby reducing dependence on the Solana main chain and improving flexibility.
Secondly, Hypergrid and Ethereum Rollup also differ in terms of interoperability. The interoperability between Ethereum Rollups is usually more complicated, such as OP chain, Arbitrum chain, Base chain, etc. The transaction consistency and asset consistency between these chains are not perfect, so cross-chain bridges are needed to realize the migration of data and assets. On the contrary, Hypergrid can achieve interoperability between native chains, and assets and data between Grid can be seamlessly migrated without relying on a third-party cross-chain bridge. This gives Hypergrid significant advantages in cross-chain interoperability.
Finally, Ivan concluded in one sentence that this is a ZK version that can be compared with the OP super chain, and it comes with an SVM modular execution layer with a decentralized sorting network.
Q5
In addition to the technical aspects, what other highlights of SonicSVM are worth paying attention to? For example, the ecological construction, the investment institutions behind it, the latest operating 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, through cooperation with TikTok, held an event to guide millions of TikTok users to its platform. Although most of these users are attracted through airdrops or points, it is worth paying attention to whether they can be successfully converted into deep users of Web3, and how to convert from "shallow" users of Web2 to "heavy" users of Web3. Ningning believes that such attempts are worth continuing to observe their conversion effects.
Then, Ningning mentioned that SonicSVM has made some innovations in user incentives. It borrowed the gameplay of last year's Telegram mini-program game and upgraded it on its basis. In this way, developers and project parties can use the SonicSVM framework to develop mini-program games based on their platform. For most TikTok users, their interests may be more focused on entertainment, cultural consumption, and IP products, rather than the financial investment interests of Web3 native users. This difference means that products in the SonicSVM ecosystem may be more inclined to entertainment content, such as casual games and IP-based NFT consumption.
Ningning further pointed out that the SonicSVM ecosystem may be different from the traditional Web3 ecosystem, especially compared with DeFi applications or Layer 2 solutions. Its user base is more focused on entertainment and cultural consumption, especially for the needs of young people of Generation Z. Similar consumption trends are already very popular in the Chinese market, such as young people are keen on consumption of animation and game peripherals. Therefore, SonicSVM may try to combine NFT and Web3 IP with traditional Web2 IP for commercialization and IPization to attract young people to consume.
Finally, Ningning concluded that the gameplay of SonicSVM is significantly different from traditional Layer 2. The goals of traditional Layer 2 usually focus on how to improve the economic opportunities of Web3 through technical means and attract investors and traders. However, SonicSVM's goal is to focus more on how to shift the ecological development of Web3 to young people and promote entertainment and cultural consumption to attract users to the chain.
Ivan’s reply elaborated on the highlights of SonicSVM in terms of user growth, investment institution support, ecosystem construction, and future development. First, he emphasized that SonicSVM has attracted nearly 8.7 million registered wallet users, 2 million of which are from TikTok, without any incentive mechanism, even though it has not yet launched the mainnet. This data shows that SonicSVM can successfully guide users of traditional Web2 platforms to Web3. In addition, the largest game among the four Mini Games launched by SonicSVM has 2.1 million monthly active users on TikTok, showing the attractiveness and potential of its platform.
In terms of investment support, Ivan mentioned that SonicSVM has received financial support from several important institutions, including Bitkraft, the top gaming industry fund in North America, which has nearly $1 billion in assets under management, further proving SonicSVM's potential in the gaming field. At the same time, Galaxy Digital, as an important infrastructure solution provider in the Solana ecosystem, also provided support for SonicSVM, showing the close connection between the project and the Solana ecosystem. In addition, SonicSVM has also received investment from OKx and Mirana Ventures (Bybit), and the financial support from these institutions has laid a solid foundation for the future development of SonicSVM.
In terms of personal investment, SonicSVM has received angel investment from Lily Liu, President of the Solana Foundation, and several core members of the Solana ecosystem, which has made SonicSVM more closely related to the Solana ecosystem and provided more resources and support for its future development.
Ivan also further analyzed the future development potential of SonicSVM. He believes that SonicSVM is not just a GameFi chain or DeFi chain. Its biggest highlight is that it has SVM equivalence, which means that any project on Solana can be seamlessly migrated to SonicSVM, greatly promoting the migration and integration of Solana ecological projects. This feature will attract developers and users in the Solana ecosystem and provide a strong impetus for the ecological expansion of SonicSVM.
In addition, Ivan also mentioned that in the future, SonicSVM may give birth to a platform similar to pump.fun, including decentralized exchanges, lending agreements, perpetual contracts and other products. He believes that this will make the SonicSVM ecosystem more diverse and break through the traditional game and financial application framework.
Finally, Ivan specifically mentioned that as some IP and meme projects on TikTok, such as MooDeng, have achieved a market value of nearly $1 billion, SonicSVM may become an ideal platform for these projects. He believes that SonicSVM can convert users on TikTok into Web3 users and create a Web3 ecosystem that not only includes entertainment elements, but also allows users to participate in high-yield activities such as DeFi. Through this platform, users will be able to obtain more profit opportunities in the Web3 world, which has huge market potential and innovation opportunities.
Q6
What are the highlights of SonicSVM's token economics design? What aspects of the token distribution and circulation model can attract investors' attention?
OneOne mentioned the cooperation between SonicSVM and TikTok, which will directly affect the design of token economics. He believes that SonicSVM's TGE has distributed a portion of tokens to TikTok users in the early stage. This strategy can ensure the continued participation of TikTok users in the future, further promote platform activity and token circulation. If the TikTok user group can remain active, SonicSVM may provide them with a continuous way of participation, which will be reflected in the subsequent token distribution, attracting more TikTok users to participate in the Web3 ecosystem.
Secondly, OneOne pointed out a possibility of user participation by analogy with the Pump.fun project. As a Web3 platform, Pump.fun lacks a regulatory mechanism, which leads to non-compliant live content. In contrast, TikTok has a strict content review mechanism that can effectively avoid these problems. OneOne believes that SonicSVM can use TikTok's live broadcast function to transfer these contents that were originally unregulated on the Pump.fun platform to TikTok, which not only ensures the compliance of the content, but also enhances the platform's credibility and user experience.
Third, OneOne further analyzed the unique advantages of the cooperation between SonicSVM and TikTok. He believes that this cooperation and the diversion from TikTok can lower the threshold for users to participate in the project. For example, users can directly conduct on-chain transactions on TikTok. And cooperation with TikTok can also bring key externality effects. As a large number of users from TikTok flow into SonicSVM, the platform will bring its own traffic, and the externality effect of this traffic will attract the attention of exchanges. Many exchanges will be very fond of projects with user traffic because it means more trading activities and handling fee income. For example, a project like the TON chain with a large number of users can get greater exposure on the exchange and launch more tokens on the platform. This externality effect is of great significance in attracting exchange support and improving the liquidity of project tokens.
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 chain may usher in a very large increase in market value in 2024. He said that traditionally, technologies such as ZK Rollups and projects backed by king-level investment institutions are often considered to be able to achieve a market value of billions or even tens of billions. However, Ningning pointed out that although ZK technology and related projects once attracted much attention, the market performance failed to fully meet expectations. On the contrary, some consumer chain projects that were underestimated by the primary market (such as SonicSVM and Pengu’s Abstract) instead There may be "unexpected" performance in the secondary market. This will expand the concept of consumer chain from the primary market to the minds of investors in the secondary market. Therefore, Ningning believes that as the market’s awareness of consumer chains gradually improves, SonicSVM’s market value may be significantly increased.
In terms of valuation expectations, Ningning boldly predicted that after the end of Q1 2024, the market value of SonicSVM will reach at least US$3 billion, reflecting his optimistic expectations for the future development potential of the project.
Ivan proposed a detailed valuation method for the expected future market value development of Sonic SVM. The core idea of this method revolves around the conversion of deposited funds and active funds. His valuation model first calculates the number of potential users who have not yet been exposed to the crypto world based on TikTok's monthly active users (MAU) and combined with the current crypto penetration rate. By multiplying these users with SonicSVM's high conversion rate and user entry funds, Ivan believes that SonicSVM can deposit a large amount of funds from TikTok users and effectively convert them through mechanisms such as the project's 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 other platforms (such as Mini Games on Telegram and the conversion rate of new users on exchanges), which enables SonicSVM to quickly attract a large number of Web3 users and bring considerable deposited funds to the platform. This deposited funds can be understood as TVL but will be greater than TVL, because not every user will put money in Dex or ecological projects. In addition, SonicSVM not only relies on the precipitation of funds, but also can activate economic activities on the chain by converting these funds into active funds. Ivan used Gas fee consumption as an example to explain this, indicating that active users will promote transactions and protocol usage, thereby creating activity for the on-chain ecology.
Furthermore, Ivan proposed an indicator called Return on Equity, which is similar to Solana's performance, indicating that after these deposited funds are converted into active funds, they will generate higher trading volume and activity through the platform, which will eventually be reflected in the growth of market value. The final formula for valuation is: deposited funds × ROE = generated handling fees, minus costs, and finally multiplied by PE. Ivan believes that SonicSVM's market value has huge potential for growth.
Ivan also emphasized the uniqueness of SonicSVM compared to other projects. He believes that although there may be many KOLs in the market for valuation comparison, this benchmarking is not very meaningful because SonicSVM is the only Web3 project operating on the TikTok user base. This combination of TikTok + Web3 makes SonicSVM irreplaceable among similar projects and is an important driving force for its market value growth.
Finally, Ivan added the advantages of SonicSVM in terms of technological innovation, especially in achieving gas-free and approval-free operation. Through this design, users do not need to perform cumbersome blockchain operations, such as paying gas fees or confirming wallet operations, which makes the Web3 experience easier, similar to the fluency of Web2 applications, thereby greatly reducing the user's usage threshold and improving the user stickiness of the platform.
In response to questions about the future market value development potential of SonicSVM, OneOne first raised an important point: TVL is not applicable to all types of projects, especially public chain projects. He explained that as a platform, the public chain not only carries a single application such as DeFi, but can also accommodate a variety of different applications and businesses. Therefore, it is not entirely fair to rely solely on TVL to evaluate the value of the public chain, and a more suitable valuation method, PEG, should be adopted. OneOne pointed out that the PEG valuation method predicts market value by judging the on-chain growth rate of a project within a specific period of time in the future. This 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 more comprehensively consider its growth potential across multiple fields.
Furthermore, OneOne discussed the difference between FDV and circulating market value, and emphasized the role of both in valuation. FDV is mainly used to predict the market value of a project after the full issuance of tokens, reflecting the overall market potential of the project. The circulating market value reflects the market's current expectations of the project, and is a reflection of investors' confidence in the project and its future potential. OneOne pointed out that the circulating market value is often related to the market-to-dream ratio. Some projects may obtain high market value by virtue of attractive stories or concepts, but their actual performance may not match this valuation.
OneOne also emphasized that valuation methods need to be flexibly adjusted at different stages and for different projects. For example, in the short term, the liquidity and market expectations of tokens can be calculated by the Fisher equation, while for projects like SonicSVM, short-term valuations should also focus on the liquidity and market reaction of tokens. He believes that in the short term, PEG valuation can be combined and adjusted according to changes in market expectations, so as to more accurately predict the market value potential of SonicSVM.
In summary, OneOne believes that for projects like SonicSVM, the most reasonable valuation method is to use PEG and combine it with market expectations for future growth of the project. He suggested that by setting upper and lower limits, a more accurate forecast of 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 adapt to the volatility brought about by this cultural attribute. Overall, OneOne's answer emphasizes the flexibility and pertinence of valuation methods, especially in public chain and platform projects, it is crucial to adopt a comprehensive valuation strategy that adapts to market changes.
Conclusion
With the outstanding performance of $SONIC online 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 to set off more waves of innovation in the Web3 field. Whether it is its unique positioning as the "TikTok chain" or its breakthroughs in technology and business models, Sonic SVM has already left an unignorable mark in the industry. Let us look forward to how this dazzling new star will continue to write its own legendary chapter in the future crypto world.
