The online growth rate is 5000%+. Why is SONIC SVM known as the next Web3 daily user growth engine?

At 20:00 on January 7, Beijing time, the SONIC SVM token $SONIC was officially listed on the world's leading trading platforms such as OKX, BYBIT, and BITGET, and will be listed on South Korea's top exchange Upbit tomorrow.

This feat of simultaneous launch of multiple platforms made $SONIC the focus of the market, and its performance after its launch was even more eye-catching. The price soared in a short period of time, with the highest increase exceeding 5000%+, attracting great attention within and outside the industry.

What made $SONIC explode into such a strong market performance on the day it was launched? What unique advantages, ecological potential and market strategies are hidden behind this outstanding performance?

This article (January 6, 137Labs "Web3's next massive user growth engine -SONIC SVM" From project positioning to market layout, we will fully reveal the secrets of this hot star project and analyze $SONIC’s future growth blueprint for you.

Q1. Can you talk about the reason why 137Labs discovered and is optimistic about Sonic SVM during investment research?

Ivan mentioned that 137Labs noticed Sonic SVM as early as June and considered it a project worthy of attention. At that time, Sonic SVM had just completed financing and launched the Odyssey campaign, with the goal of attracting users through this new campaign. As the first Rollup project in the Solana ecosystem, Sonic SVM has important market potential. Any core project that is launched first in a certain ecosystem will seize the opportunity in the market, gain more users and traffic, and also increase TVL.

Until November, 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 the market value of Ton chain. Therefore, any Web3 project that obtains a large number of users through a similar platform has huge market potential.

Ivan believes that the current user scale in the Web3 and Crypto fields 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 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. While researching new projects, he discovered this new technology based on Solana -Light Protocol. This technology aroused his interest, and during further research, he discovered that Sonic SVM was utilizing this new technology, and in addition to Light Protocol, Sonic SVM also had other innovative technology updates that reached his level at the technical level. standard. 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 to understand this positioning? Why is it considered to be comparable to TON? In what ways does Sonic have advantages or disadvantages? What is the appeal 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 when we promoted the popularization of Web3 in the past, 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 expected. They are more concerned about how to easily enter the Web3 world and enjoy the high returns on the chain. Therefore, user acquisition for Web3 must not only solve technical obstacles, but also simplify the user onboarding process.

In this context, Ningning emphasized that Sonic SVM's success in attracting users through TikTok is the key to its strategy. TikTok has a large and high-quality young user base, especially in North America and Europe, which are very friendly to Web3 and cryptocurrency. Compared with Telegram, TikTok has a better user base and is more receptive to Web3 applications such as cryptocurrency. Sonic SVM chose to attract users through TikTok because it keenly captured market opportunities. It is very suitable to be positioned as a "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 features while maintaining efficient performance. Although Sonic SVM as L2 has a certain degree of centralization issues, Ningning believes that these issues are not important to users. Users are more concerned about the security, data transparency and verifiability of the chain, and these Sonic SVM can provide them all. What users are more concerned about is being able to enter the Web3 world through easy methods (such as one-click connection to TikTok accounts) and participate 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 access process and providing high-value assets on the chain, Sonic SVM provides unique attractions for Web3 users. This has clear advantages 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 they both have huge social media user groups behind them. Sonic SVM is endorsed by TikTok, while TON is backed by Telegram. According to 2024 data, 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 huge potential for the promotion of Web3 and cryptocurrencies. And the teams of these two projects also have close ties with the social platforms behind them. TON is led by Telegram’s founder team, while the founders of Sonic SVM have experience with ByteDance (TikTok’s parent company). In addition, the Sonic SVM team 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 traffic. 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 verification and wallet recovery. Both can generate login information and perform wallet recovery through social media platforms, simplifying the user's entry and operation process, and improving user convenience.

The differences between Sonic SVM and TON:

The first is the dissemination ability of short videos. Compared with Telegram, TikTok’s short video content is more disseminating and viral. Research shows 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 communication platform.

The second is the difference in user value. TikTok’s user groups mainly come from North America, Europe and the Asia-Pacific region, and users in these regions have strong payment capabilities. In contrast, Telegram’s user groups are more from developing countries such as Eastern Europe, Southeast Asia, and Africa, and users’ payment capabilities are weak. TikTok’s high proportion of young users has a higher conversion rate. Especially in terms of marketing and promotion, the conversion efficiency of young users can be as high as 70%. Telegram’s young users account for 19%, and its conversion efficiency is relatively low. As for the difference in ARPU (average revenue per user), TikTok’s ARPU is US$11.7, while Telegram’s ARPU is only US$1. The difference between the two is 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 drainage platforms. Although Telegram is currently the main platform for early traffic drainage of cryptocurrency projects, TikTok has just started as a traffic drainage platform and has large room for development. TikTok’s huge traffic pool and young user group with strong paying ability provide Sonic SVM with a huge potential market. As an emerging project, the TON chain started late. The activity on the chain and ecological projects are still developing, while Solana's ecology is already very mature. As Solana's Layer 2 solution, Sonic SVM can seamlessly connect to Solana's ecosystem and enjoy its mature technical support and project resources.

Therefore, Sonic SVM’s business model is extremely 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 group with higher paying ability. The paying ability and conversion willingness of TikTok users enable Sonic SVM to attract more user funds, thereby driving the growth of on-chain activities and TVL.

And users must not only come in, but also bring in funds to form precipitated funds and liquidity, in order 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 popularity of Web3 applications.

Q3. Bind the wallet to the social media account. If the social media account is stolen, is there a risk of the wallet being stolen?

Ivan pointed out that social media tied wallets are often called Account Abstraction (AA) wallets. Although this approach can simplify the user experience, it may also bring some risks. Users’ keys are not held directly in their own hands, but are instead hosted by the social media platform or other third party. This means that even if a social media account is compromised, the attacker cannot directly obtain the private key. The only thing the attacker can do is transfer the assets in the account. However, if users change their social media account passwords in a timely manner and enable two-step verification, a quick response can protect the account even if the account is compromised.

Ivan mentioned that if the user does not set up two-step verification and the attacker has stolen the social media account, the best way is to immediately change the password and log out of the login information on all other devices. In this way, the attacker cannot continue to operate the account. Enabling two-step verification is one of the most effective preventive measures. It greatly increases the difficulty of account theft. Even if the password is leaked, you still cannot log in to your 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, large-scale account theft may indeed occur. But if the platform pays attention to security and strengthens protective measures, then such risks can be controlled.

Q4. What are the key innovations in SonicSVM’s technical architecture? What are the core features of HyperGrid and HSSN? How does Sonic’s technical solution differ from Ethereum Rollup? Can you sum up 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.), the technical innovation of SonicSVM lies in its two-way synchronization mechanism. Ethereum's Layer 2 is one-way when it comes to state synchronization, 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), achieves 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 makes the two chains can work together more closely.

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 status synchronization requests, thereby improving the system's processing capabilities, which is very important for improving throughput.

In addition to grid structure and throughput improvements, HyperGrid's technology 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 interoperate with applications on the Solana chain, providing "equivalence" similar to Ethereum Layer 2 - that is, without modifying the code, applications on the native Solana chain can Runs on the Sonic chain.

Finally, OneOne emphasized that the grid structure of SonicSVM makes it faster than Solana itself, giving it an advantage in performance. This two-way synchronization and high-throughput design allows SonicSVM to demonstrate technological differentiation advantages compared to Ethereum Rollup. In general, the essence of HyperGrid can be summarized as follows: achieving cross-chain interoperability and higher throughput capabilities through efficient state synchronization and grid architecture.

Ivan first introduced the similarities between Hypergrid and Ethereum Rollup. Hypergrid is called "Grid" because it is composed of multiple grids (Grid), and each grid can be regarded as a Rollup, similar to Ethereum Rollup or Solana's Layer 2 solution. Each Grid has a horizontal relationship 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 delegates these functions to the Solana main chain.

In this regard, Hypergrid uses HyperGrid Shared State Network (HSSN) for state management and verification. Compared with Ethereum Rollup, the state generation and sorting process of Hypergrid is similar. The sorting is first completed in the Grid and the state hash is generated, and then the information is handed over to the HSSN. HSSN is responsible for unified management of these sorted transactions and status, and finally delivers them to Solana for final confirmation. Once Solana confirms it, the entire transaction becomes immutable.

To explain the working principle of HSSN, Ivan used a popular metaphor: Solana is like a "club", which often has various problems due to busy business. In order to reduce the burden on Solana, HSSN recommends that Solana open multiple "branch stores", that is, each Grid is like a branch to handle local transactions and status sorting. Each branch (Grid) will generate a status hash of the transaction, and then submit it 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 performance of the system. Through Light Protocol’s ZK verification, Hypergrid can once again reduce Solana’s load and avoid potential risks such as DoS attacks. At the same time, ZK verification can also speed up the final confirmation of status and ensure that transactions are irreversible.

In terms of interoperability, Ivan emphasized the compatibility between Hypergrid and Solana. Hypergrid not only allows ecological projects on the Solana chain to be seamlessly migrated to Hypergrid, but also enables all assets and data on the Solana chain to be seamlessly migrated to Sonic SVM. This means that assets and data can be transferred directly to the Sonic chain without the need for a third-party cross-chain bridge. Therefore, Hypergrid is very strong in interoperability between chains and can achieve seamless flow of assets and data between different chains.

At the same time, seamless connections between Grids can also be achieved, which allows assets and data to 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 the global ordering mechanism of HSSN ensures the consistency of the entire system and avoids state conflicts and state bifurcations. The introduction of global sorting makes all transactions conducted in Hypergrid consistent and avoids common conflicts or forks in distributed systems, thereby further improving the reliability and stability of transactions.

Finally, Ivan summarized the technical characteristics of Hypergrid. At a 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 transaction sorting and generate corresponding status. The way to generate ZK proofs 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 transactions and ensure that transactions 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 benchmark the OP super chain, and it comes with the SVM modular execution layer of the decentralized sorting network.

Q5. In addition to the technical aspect, what other highlights of SonicSVM are worthy of attention? For example, ecological construction, supporting investment institutions, 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 involves partnering with TikTok to host a campaign that directs millions of TikTok users to its platform. Although most of these users are attracted through airdrops or points, whether they can be successfully converted into in-depth users of Web3, and how to transform from "shallow" users of Web2 to "heavy" users of Web3, is a process worthy of attention. Ningning believes that such an attempt is worth continuing to observe its transformation effect.

Next, Ningning mentioned that SonicSVM has made some innovations in user incentives. It borrows the gameplay from last year’s Telegram mini program game and upgrades it based on it. In this way, developers and project parties can use SonicSVM's framework to develop mini-program games based on its platform. For most TikTok users, their interests may be more focused on entertainment, cultural consumption, and IP products, rather than necessarily 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 SonicSVM’s ecosystem may be different from the traditional Web3 ecosystem, especially compared with DeFi applications or Layer 2 solutions. Its user group focuses more on entertainment and cultural consumption, especially targeting the needs of Generation Z young people. Similar consumption trends are already very popular in the Chinese market. For example, young people are keen on consuming animation and game peripherals. Therefore, SonicSVM may try to combine NFT and Web3 IP with traditional Web2 IP to commercialize and IP to attract young people for consumption.

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, support from investment institutions, ecological construction, and future development. First of all, he emphasized that SonicSVM has attracted nearly 8.7 million registered wallet users, 2 million of which are from TikTok, without having yet to go online on the mainnet and without any incentive mechanism. This data shows that SonicSVM can successfully guide users of the traditional Web2 platform to Web3. In addition, the largest of the four Mini Games launched by SonicSVM has 2.1 million monthly active users on TikTok, showing the appeal and potential of its platform.

In terms of investment support, Ivan mentioned that SonicSVM has received financial support from a number of important institutions, including Bitkraft, North America's top gaming industry fund, with assets under management approaching one billion US dollars, 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 provides 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 Department). 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 multiple core members of the Solana ecosystem. This has made the relationship between SonicSVM and the Solana ecosystem closer 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 more than 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, which greatly promotes the migration of Solana ecological projects. and fusion. 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 SonicSVM may create a platform similar to pump.fun in the future, including products such as decentralized exchanges, lending protocols, and perpetual contracts. He believes that this will make SonicSVM's ecology richer and more diverse, breaking through the traditional game and financial application frameworks.

Finally, Ivan specifically mentioned that with some IP and meme projects on TikTok such as MooDeng gaining a market value of close to one billion US dollars, SonicSVM may become an ideal hosting 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, with huge market potential and innovation opportunities.

Q6. What are the highlights of SonicSVM’s token economics design? In terms of token distribution and circulation models, what aspects can attract investors ' attention?

OneOne mentioned SonicSVM’s cooperation with 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 stages. This strategy can ensure the continued participation of TikTok users in the future and further promote platform activity and token circulation. If the TikTok user group can remain active, SonicSVM may provide them with a continuous participation method, which will be reflected in subsequent token distributions, 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’s lack of regulatory mechanism has led to non-compliant live broadcast content. In comparison, 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 content that was originally unsupervised on the Pump.fun platform to TikTok. This not only ensures the compliance of the content, but also improves the platform's credibility and user experience.

Third, OneOne further analyzed the unique advantages brought by the cooperation between SonicSVM and TikTok. He believes that this kind of cooperation and 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 external effects. As a large number of users from TikTok flow into SonicSVM, the platform will bring its own traffic. The external effects of this traffic will attract the attention of exchanges. Many exchanges will be very interested in projects with user traffic, because it means more trading activities and fee income. For example, a project like TON Chain with a large number of users will be able to gain greater exposure on exchanges and list more tokens on the platform. This external effect is of great significance in attracting exchange support and improving the liquidity of project tokens.

Q7. What do you think of 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 predicts that after the end of Q1 in 2024, SonicSVM's market value 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 Sonic SVM's future market value development expectations. The core idea of ​​this method revolves around the conversion of precipitated funds and active funds. His valuation model is first based on TikTok’s monthly active users (MAU), combined with the current encryption penetration rate, to calculate the number of potential users who have not yet been exposed to the encryption world. By multiplying these users with SonicSVM’s high conversion rate and user admission funds, Ivan believes that SonicSVM can precipitate a large amount of funds from TikTok users and effectively convert them through mechanisms such as the project’s Mini Games.

Formula: Precipitated funds = TikTok’s MAU × (1-encryption 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 (such as Mini Games on Telegram and the conversion rate of exchanges), which allows SonicSVM to quickly attract a large number of Web3 users and bring considerable precipitation to the platform funds. This precipitated capital can be understood as TVL but will be greater than TVL because not every user will put money into Dex or ecological projects. In addition, SonicSVM does not only rely on the precipitation of funds, but is also able to 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 drive transactions and protocols Use it to create activity for the ecology on the chain.

Furthermore, Ivan proposed an indicator called Return on Equity, which is analogous to Solana’s performance, indicating that after these precipitated funds are converted into active funds, they will generate higher trading volume and activity through the platform, which will ultimately be reflected in market capitalization growth. superior. The final formula for valuation is: precipitated funds × ROE = generated handling fees, then subtract costs, and finally multiply by PE. Ivan believes that SonicSVM's market value has huge upside potential.

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, such benchmarking does not mean much because SonicSVM is the only Web3 project operating based on TikTok users. The combination of TikTok + Web3 makes SonicSVM irreplaceable among similar projects and is an important driving force for its market value growth.

Finally, Ivan added SonicSVM’s advantages in technological innovation, especially in achieving gas-free and approve-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 and similar to the smoothness of Web2 applications, thus greatly reducing user usage The threshold increases the user stickiness of the platform.

When OneOne answered the question about SonicSVM's future market value development potential, he first raised an important point: TVL is not suitable for 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 a public chain. Instead, a more suitable valuation method - PEG - should be used. OneOne pointed out that the PEG valuation method predicts market value by judging the project’s on-chain growth rate in a specific time in the future. This not only focuses on changes in TVL, but also includes user growth, on-chain activities and other dimensions. For a platform-based project like SonicSVM, PEG is able to more comprehensively consider its growth potential across multiple areas.

Further, OneOne discussed the difference between FDV and circulating market capitalization, and emphasized the role of both in valuation. FDV is mainly used to predict the market value of a project after its tokens are fully issued, reflecting the overall market potential of the project. The circulating market value reflects the market's current expectations for the project and is a reflection of investors' confidence in the project and its future potential. OneOne pointed out that the circulating market capitalization is often related to the market-to-market ratio. Some projects may obtain high market capitalization with 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 projects. For example, in the short term, the liquidity and market expectations of tokens can be calculated through the Fisher equation. For projects like SonicSVM, short-term valuations must also focus on the liquidity and market response of tokens. He believes that in the short term, the PEG valuation can be combined and adjusted according to changes in market expectations to more accurately predict 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 the market expectations for the future growth of the project. He suggested that by setting upper and lower limits, more accurate forecasts can be provided for market value expectations. 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 caused by this cultural attribute. Overall, OneOne’s answer emphasized the flexibility and pertinence of valuation methods. Especially in public chain and platform-based projects, it is crucial to adopt a valuation strategy that is comprehensive and adaptable to market changes.

Conclusion

With the outstanding performance of $SONIC’s 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 footprint, 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 left a mark that cannot be ignored in the industry. Let us look forward to how this dazzling new star will continue to write its own legendary chapter in the future encryption world.