A brief introduction for those who don't know, Saga is a blockchain built on the Cosmos SDK and aims to become a "blockchain production center". Blockchains released on Saga are called Chainlets, Chainlets can optionally use Cosmos SDK, Avalanche Subnets and Polygon Supernets.
In terms of ideas, Saga is quite similar to two projects that have made waves recently, $ALT and $DYM. Below I will distinguish the differences between them:
$ALT and $DYM: Produce layer 2, rent/connect sequencers to operate Layer 2.
$SAGA: Producing layer 1, SAGA itself becomes the security layer for blockchains, renting/connecting validators to operate layer 1.
Compared to the other two projects, $SAGA's role is somewhat better because this will be an important security layer for the entire ecosystem, this is an important factor for the valuation section below.
In terms of tokens, $SAGA will be a token staked into the Security Chain to help increase the security of SAGA and all blockchains issued on the platform. Therefore, we will be able to witness the story of staking $SAGA to receive airdrops from projects on Saga, which will be a long-term price increase driver.
So how should $SAGA be valued?
With an initial supply of 90,000,000 $SAGA I can assume the following scenarios:
Price 7$ cap will be 630m equal to AltLayer
Price 9$ cap will be 810m equal to DYM
Price 10$ cap will be 900m, slightly higher than DYM, this is a more optimistic case that I aim for.
What price and cap do you think SAGA will have?
