SocialFi brings together the principles of social media and decentralized finance (DeFi). Which SocialFi projects are worth watching? Find out more.
Key Points:
SocialFi is bringing social media onto the blockchain with ambitious goals.
Some SocialFi cryptos have been pumping despite the broader market’s struggles.
SocialFi promises to improve how user data is handled and reward content creators for their work.
The old Web 2 model of social media could be replaced by SocialFi projects that use blockchain technology to make socialising online equitable, secure, censorship-resistant and more dynamic. There are hundreds of SocialFI cryptos, but this post has found five of the most promising ones that you should have on your watchlist for 2023 and beyond.
What Is a SocialFi Project?
SocialFi combines traditional social media with DeFi, tokenisation and NFTs. SocialFi platforms are a Web 3 approach to social media that have the potential to change the direction of an industry that has been widely criticised for poor security, abuse of user data, censorship and exploitation.
Even though the average person spends several hours a day on social media, almost all the generated revenue is collected by central authorities.SocialFi makes it possible for content creators to earn a fair share of the value generated by their work through cryptocurrencies. In addition, it makes it more feasible for users to support their favourite content creators.
Top 5 SocialFi Projects to Watch in 2023
1. CyberConnect ($CYBER)
Market Capitalisation: $66 million
YTD: 12%
Price: $6
CyberConnect ($CYBER) is a SocialFi development tool kit. The platform offers developers several features designed to streamline the building of SocialFi dApps. CyberConnect has an impressive ecosystem and has received backing from several notable blockchain entities. However, its price action has been highly volatile.
$CYBER spiked by over 600% in August, reaching an all-time high of $15.79. It has since crashed all the way down to $6 after rumours of market manipulation by the team spread on social media. The team has denied the rumour, and the price appears to have stabilised. Most price predictions expect $CYBER to return to double figures, and there’s still plenty of interest in the project despite the sudden slump earlier this week.
2. Theta Network ($THETA)
Market capitalisation: $624 million
YTD gains: -20%
Price: $0.62
Theta Network ($THETA) is an Ethereum-based blockchain that offers various decentralised storage features that are aimed at video streaming services. Theta Network plans to revolutionise how social media streaming services like Twitch operate. It seeks to put content creators at the centre of social media streaming as opposed to the large corporations that currently control the industry.
Price predictions expect $THETA to rally above $1 in the next year or two. With the token trading at a 95% discount on its all-time high, some bullish commentators believe that this could be a good time to buy the token if you plan to hold it long-term.
3. Hive ($HIVE)
Market capitalisation: $101 million
YTD gains: 1%
Price: $0.27
Hive ($HIVE) is a decentralised social media platform that was created in 2020 as a fork of the Steem social media blockchain. The platform is operated using a proof-of-stake (PoS) consensus mechanism. Users are rewarded with $HIVE for participating in the network and posting high-quality content.
$HIVE has traded flat YTD, and its market capitalisation has generally stayed above $100 million. Price predictions for $HIVE are generally bullish. AMBcrypto expects it to post double-digit gains before the end of 2023, and Coincodex sees it trading above $0.5 next year.
4. Steem ($STEEM)
Market capitalisation: $70 million
YTD gains: 3%
Price: $0.15
Steem ($STEEM) is a Web 3 social media venture founded in 2016. The project rewards contributors to its community with $STEEM, and transactions are validated using PoS. According to the website, it has already paid out over $59 million to content creators.
There has been some controversy within the Steem team, which, as we’ve already mentioned, led to the creation of Hive. Surprisingly, the split hasn’t stopped either of the projects from building its user base. Changelly expects $STEEM to post modest gains this year before entering a bull run next year, resulting in a potential 2X.
5. Galxe ($GAL)
Market capitalisation: $50 million
YTD gains: -30%
Price: $1.1
Galxe ($GAL) has performed poorly YTD but weathered the 2022 bear market better than other comparable cryptos. Galxe is a Web 3 social community project built on Ethereum that claims to have over 10 million active users. The team’s main goal is to create an “open and collaborative Credential Data Network” whereby user data can be used in a secure and equitable manner, unlike with Web 2 social media platforms.
Coincodex forecasts $GAL to experience a period of stagnation for the rest of the year and then launch into a rally that will drive it above $2 in 2025. AMBcrypto is also bullish on $GAL with a 2X price target for 2024.
Conclusion
The Web 2 model of social media could be described as broken. Content creators work tirelessly, but centralised authorities siphon off profits. And users are helpless to protect their data from being harvested and used for nefarious profit-making schemes. Decentralised platforms offer a welcome alternative to the status quo, and the cryptos in this list could see their prices rise as more users and creators move into Web 3 social media.
