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SocialFi is the latest trend in the cryptocurrency universe and is simply a portmanteau combining social media and finance. The SocialFi space has grown greatly in the past few months, as social media users find new ways to gain the most from their content. Also referred to as social tokens or content creator coins, SocialFi represents a form of cryptocurrency grounded in offering users complete ownership over their digital content.
Since the turn of the year, the SocialFi total token market capitalization has grown past the $6 billion mark, with a large portion ($2.6 billion) attributed to Theta Network, a blockchain-based decentralized cloud for artificial intelligence (AI), media and entertainment. Notwithstanding, the steady growth of projects such as Phaver, which provides a decentralized social media platform that rewards users for their content, has played a huge role in setting the sector as one to watch in 2024.
Why We Need SocialFi Blockchain Platforms
As Web 2.0 social platforms become more intrusive to copyright laws, the advent of decentralized social media platforms could be the solution to diverting ownership rights back to the original creators. Traditional social media platforms often control content and revenue, which is seen as disadvantageous to the actual creators.
To curb this, SocialFi platforms leverage blockchain technologies and, at times, non-fungible tokens (NFTs) to give ownership and control of content to the original creators. These platforms empower brands, content creators, entertainers, and communities to assign a monetary value to their content and get paid a fair share of their content.
By focusing on objective data and the impact a project has on the wider crypto field, this article discusses the top SocialFi projects in 2024 and their contributions to the new age of decentralized social media platforms.
The Top SocialFi Projects In 2024
1. Theta Network
As mentioned before, Theta Network ($THETA) is the largest SocialFi project, boasting a $2.6 billion market cap. Unlike other decentralized social protocols, Theta offers decentralized storage and delivery infrastructure that powers a novel Web3 video streaming and media entertainment platforms.
Consisting of two distinct platforms – Theta Blockchain and Theta Edge Network – the platform revolutionizes how content is consumed across the Web 3 space. The Blockchain provides users and content creators with a payment and reward system, as well as smart contract capabilities. The Edge Network provides the storage and delivery infrastructure, allowing users to share and own their media assets, including images and videos.
Theta’s native token, $THETA, acts as the fuel for the platform, providing payment options and rewards to creators. It currently trades at $2.69, representing a 15% loss in the past week with a total market capitalization of $2.69 billion.
2. Phaver
Most exciting on our list is Phaver, a blockchain-based platform that allows users to create and own their social graphs across several social platforms. The platform provides a “Web 2.5” structure, allowing users to sign up directly using emails or social log-ins (similar to Facebook, Twitter and Instagram) and start interacting with their favourite online communities. The platform will also introduce easy wallet signups, removing the complexities that Web 3 platforms suffer from.
Currently, the platform allows users to connect their Lens Protocol and CyberConnect accounts. This allows users with accounts on the two platforms to use their in-wallet assets to build their own social graphs. For example, a user on Facebook can simply transfer their content to Twitter, maintaining their social status and content.
Notwithstanding, users can connect their r Web3 collectibles, badges and credentials and build up their credibility to level up and receive unique perks. Finally, Phaver includes a reward system whereby users can earn Phaver points and future token rewards for contributing to the platform.
3. Galxe Protocol
One of the most important facets of social media today is the privacy of personal data. However, most Web 2 social platforms do not let the user own their data nor get to decide what the data is used for, who they’re shared with, and how they benefit from it. Galxe Protocol aims to change this by designing a next-generation system that gives the user complete control over their private data and identity. The platform redefines how credentials are issued and verified in the Web3 world, making social media a more user-focused ecosystem.
Galxe Protocol is a permissionless self-sovereign identity infrastructure. Powered by Zero-Knowledge Proof, users can own, manage, and share verifiable credentials securely and privately. Additionally, users can create their own communities and reward the community and contributors with a variety of rewards, from tokens to loyalty points, and achievements to reputation.
The platform allows users to monetize their social assets, including followers, the content that is published, and their data footprint. It removes the power from the Big Tech firms and gives it back to the people, allowing them to choose what to disclose to whom they want and what they are interested in.
Can SocialFi Become The Next Big Thing In Crypto?
SocialFi is creating a new way of interacting with communities and individuals online. The main goal for many projects in the sector is to provide an accessible and interactive social hub for content creators and users to manage their interactions, own their data and control their social profiles.
Additionally, creators on these platforms do not need to solely depend on third-party advertisers to get paid. SocialFi allows creators to earn income from the valuable content they share as well as benefit users who interact with their content.
As the new Web 3.0 sector prepares itself to tackle the world’s largest social media platforms, users and creators could heavily benefit from the rise of SocialFi. Content creators will benefit from direct compensation for their content, social profiles will enhance the privacy of data and identity, and most importantly, SocialFi users gain full control and ownership over their data and digital content.
Despite the role SocialFi has to play in revolutionizing social media, blockchain ecosystems still face huge challenges in their quest for global adoption, including scalability, user adoption, and regulatory issues.
