$SOMI Memecoins on Solana generated significant on-chain volume and attracted a large number of speculative traders, acting as a major source of liquidity. However, this activity was primarily driven by short-term hype rather than sustained economic fundamentals. When memecoin trading declined, the associated decrease in transaction volume and demand for SOL put downward pressure on its price, revealing the network’s reliance on this temporary liquidity.

On the other hand, somnia approach for automated market creation using AI involves building markets that facilitate real data-driven transactions and user engagement, such as prediction markets and financial instruments. This approach tends to support more consistent and functional economic activity over time, relying less on speculative bursts and more on ongoing participation based on actual use cases.

Memecoins: Their value relies entirely on hype, collective sentiment, and social trends, without any economic foundation or real use case.

Prediction markets: They are based on real information and future events (e.g., election outcomes, commodity prices, sports results), which links them to genuine informational or financial value.