After experiencing the metaverse craze of 2021-2022, the entire market has become quite cautious about related concepts. However, I believe that now may be the best time to reassess this track, and Somnia Network is one of the severely undervalued targets.
My judgment is based on several observations. Traditional blockchain projects are often constrained by technical bottlenecks, making it impossible to support truly real-time applications. However, Somnia has actually solved this fundamental problem through innovative architectural design. 1,050,000 TPS and a confirmation time of 100 milliseconds, what does that mean? It means that blockchain has, for the first time, the technical foundation to support large-scale real-time applications.
More importantly, I find that the market's understanding of Somnia is still superficial. Most people see it as just another 'high-performance public chain', but in fact, Somnia addresses a deeper issue—how to achieve Web2 user experience standards for blockchain applications.
This judgment comes from my observation of the development process of the traditional internet. The internet in the 1990s also faced performance bottlenecks, but with the popularization of broadband and technological optimization, the entire ecosystem ushered in explosive growth. The current situation in the blockchain industry is very similar, and Somnia may be the catalyst that propels the industry across the technological singularity.
From an investment logic perspective, I prefer to position Somnia as 'infrastructure investment' rather than 'concept investment'. The value of infrastructure often does not lie in short-term speculation, but in long-term network effects and ecological value. AWS was also not favored in its early days but eventually became the biggest beneficiary of the cloud computing era.
The design of the SOMI token also reflects this infrastructure attribute. The gas fee burn and staking reward mechanism essentially tie network usage to token value. As the number of applications and user activity on Somnia grows, the intrinsic value of SOMI will also increase accordingly.
What I am particularly concerned about is the quality of Somnia's partners. The involvement of Yuga Labs is not just a capital collaboration; more importantly, it validates Somnia's technical capabilities in NFT and metaverse applications. The partnership with Unstoppable Domains indicates that Somnia is expanding towards Web3 identity and domain systems. These collaborations suggest that a larger ecosystem is forming.
But I must also point out that this kind of investment requires sufficient patience. The value release of infrastructure often takes 2-3 years, during which various market fluctuations may occur. In the short term, the price of SOMI may be more influenced by overall market sentiment rather than driven by fundamentals.
From the perspective of risk control, I suggest investors pay attention to several key indicators: developer activity, growth in the number of dApps, transaction volume growth, etc. These indicators can more realistically reflect the health of the Somnia ecosystem and are more valuable for reference than mere price fluctuations.
My conclusion is that if you believe that blockchain will ultimately support the next generation of internet applications, then infrastructure projects like Somnia are worth long-term attention. Of course, this requires investors to have sufficient judgment and patience, as true value may take time to prove.
