Positive Stories from SocialFi: 5 Key SocialFi Projects to Watch in 2024 | Christina Paul | Coins | December 2023

Explore the future of decentralized social finance (SocialFi) with our insightful guide. Take a look at SocialFi’s positive examples and stay ahead of the curve by keeping an eye on the top 5 SocialFi projects poised to make waves in 2024. Immerse yourself in a world of innovative blockchain-based solutions that are reshaping the landscape of social and financial interactions.

The financial environment has experienced significant advancements with the introduction of blockchain technology and cryptocurrencies. Bitcoin and Ethereum are widely known, but a new and interesting trend has emerged called SocialFi. SocialFi utilizes blockchain technology to build a decentralized financial ecosystem through community participation.

Among the numerous SocialFi cryptocurrencies, let’s take a look at five promising ones worth putting on your watchlist.

What does SociaFi mean?

social pie, an acronym for Social Finance, brings an innovative perspective to the financial system by fusing the principles of decentralized finance (DeFi) with the dynamic influence of social media platforms. This merger aims to democratize finance by leveraging the attractive properties of both decentralized finance models and social networks.

Additionally, the SocialFi platform implements a web3 approach to social media, addressing challenges within the industry such as inadequate security, misuse of user data, censorship, and exploitation. SocialFi has the potential to reshape this story.

Given that a significant portion of people’s daily lives are consumed by social media, traditional central authorities often capture the lion’s share of the revenue generated. SocialFi emerges as a solution to help content creators fairly and directly share the value they create through cryptocurrency. Not only does this benefit creators, it also allows followers to provide easier and more direct support to their favorite content creators.

Top 5 SocialFi projects by market capitalization

1. Theta Network

Theta, a blockchain protocol, is revolutionizing the global landscape of decentralized video streaming. Unlike traditional content delivery networks (CDNs) that are limited by geographic constraints, Theta takes a unique approach. It leverages the collective power of users sharing bandwidth and computing resources to broadcast video content, creating a more efficient and decentralized streaming ecosystem. This groundbreaking model addresses the limitations of traditional CDNs, especially when it comes to delivering high-quality video streams.

At the core of Theta’s blockchain operations are two native cryptocurrencies: THETA Coin, which facilitates voting on protocol changes, and TFUEL, which enables transaction execution. With a market capitalization of $619 million and a current price of just $0.62, Theta is establishing itself as a project to watch. Analysts are predicting potential growth, predicting that the project price could exceed $1 within the next year or two. Take a look at this innovative blockchain venture.

2. Hive ($HIVE)

Hive is a content creation platform built on the blockchain that acts as a social media network in a unique way. Users who actively participate in decentralized applications (dApps) within the community are rewarded with HIVE, the platform’s native cryptocurrency.

One of the notable features of the Hive network is its fully decentralized governance system. Users who hold a stake in the network gain the privilege of participating in decision-making through voting. This stake is determined by the quantity of HIVE coins in the professional wallet, and serves both the role of securing the network and strengthening the decentralization of various protocols.

Operating based on the Delegated Proof of Stake (DPoS) protocol, Hive relies heavily on users investing assets in HIVE coins to support network operations and ensure security. This innovative approach creates a dynamic ecosystem where active participation influences the direction of the platform not only through participation, but also through decentralized governance.

3. Steam ($STEEM)

Steem, a social blockchain, forms the basis for decentralized blogging and social media platforms, including popular applications such as Steemit and Dlive. Currently valued at $76 million, Steem is trading at $0.17 per unit and its future price outlook looks promising.

4. CyberConnect ($CYBER)

CyberConnect, a decentralized social graph protocol leveraging blockchain technology, emerged with the primary goal of challenging and transforming the existing Web2 social model. This includes addressing issues such as user data exclusivity and the need for interoperability of data and identities across different platforms.

In August, the value of $CYBER soared 600% to an all-time high of $15.79. However, the cryptocurrency fell significantly to $4.9 as rumors spread on social media suggesting market manipulation by the project team. The team strongly denied these claims, and the token price appears to have stabilized since then.

5. Galx ($GAL)

Galxe is an innovative Web3 credential data network that helps developers create enhanced products and foster a vibrant community within the Web3 ecosystem. At the heart of the Galxe protocol is GAL, the native governance token that is important for coordinating governance and decision-making processes within the Galxe network.

The team’s main goal is to build an “open and collaborative credential data network” that ensures safe and equitable use of user data, in stark contrast to the practices of Web 2 social media platforms.

Currently, the Galxe token is worth $1.177648, boasting a current market capitalization of $102.36 million.

conclusion:

The existing Web 2 model of social media often faces criticism due to its inherent flaws. Content creators invest significant effort, but see central authorities taking a significant portion of their profits. At the same time, users have limited control over their data and it is likely to be exploited for questionable profit motives.

In contrast, decentralized platforms present an attractive alternative to this common paradigm. The cryptocurrencies mentioned here may increase in value as more users and creators turn to Web 3 social media, attracted by the prospect of a fairer, user-controlled ecosystem.