The world of finance has undergone a massive transformation with the advent of blockchain technology and cryptocurrencies. While Bitcoin and Ethereum are household names, a new and exciting trend has emerged – SocialFi. SocialFi leverages the power of blockchain technology to create a decentralized and community-driven financial ecosystem.
There are hundreds of SocialFi cryptos, but we look at the five promising ones to have on your watch list.
What Does SociaFi Mean?
SocialFi, short for Social Finance, represents a novel approach to financial systems. It aims at democratizing finance by merging DeFi principles with the influence of social media platforms. This convergence brings together the benefits of decentralized finance with the interconnectedness and user engagement of social networks.
Besides, SocialFi platforms constitute platforms with a web3 approach to social media. The social media industry has been criticized for poor security, abuse of user data, censorship, and exploitation. SocialFi has what it takes to change this narrative.
Most people spend several hours a day on social media. Central authorities often collect the revenue most people get. SocialFi makes it possible for content creators to earn a fair share of the value they generate through crypto. In addition, it makes it easier for supporters to support their favorite content creators.
Top 5 SocialFi Projects by Market Cap
SocialFi tokens promise a future where social interactions carry tangible financial value. But what exactly are these tokens? Here are five of the most promising tokens;
1. Theta Network
Theta is a blockchain protocol that encourages a worldwide network of computers to run a decentralized video streaming platform. Unlike traditional content delivery networks (CDNs), which are limited by their geographical locations and are paid to deliver video content to users, Theta takes a different approach.
It leverages users who can share their available bandwidth and computing resources to help relay video content. In return for their contributions, Theta rewards these users, creating a more efficient and decentralized video streaming ecosystem. This innovative model aims to address the limitations of existing CDNs, especially in delivering high-quality video streams to users.
Central to running the operations on its blockchain, Theta boasts two native cryptocurrencies, THETA coin, for voting on changes to the protocol, and TFUEL, for executing transactions.
With a market capitalization of $619 million and its price at just $0.62, this is a project worth the watch. Various prospects place the project’s price to be above $1 in the next year or two.
2. Hive ($HIVE)
Hive is a content creation platform that exists on the blockchain and essentially functions as a social media network. It provides users with rewards in the form of its native cryptocurrency, HIVE, for actively engaging in decentralized applications (dApps) run by the community.
The Hive network operates with a fully decentralized governance system. Users who hold a stake in the network have the privilege to participate in decision-making through voting. The amount of HIVE coins held in specialized wallets determines the stake, and serves the dual purpose of securing and increasing the decentralization of the network’s various protocols.
This blockchain works using the Delegated Proof of Stake (DPoS) protocol, which heavily relies on users staking their wealth in HIVE coins as a means of supporting the network’s operations and ensuring its security.
HIVE currently stands at a $152 million market cap, with a price of $0.30 per token.
3. Steem ($STEEM)
Steem (AKA social blockchain) serves as the foundation for blockchain-driven blogging and social media platforms. It serves as the underlying technology for well-known applications such as Steemit and Dlive.
The project stands at a $76 million market cap with a price of just $0.17 with an even better price outlook in the future.
4. CyberConnect ($CYBER)
CyberConnect is a decentralized social graph protocol that has been established based on blockchain technology. Its primary objective is to challenge and transform the traditional Web2 social model. It aims to tackle problems like the monopolization of user data and the need for interoperability of data and identity across various platforms.
$CYBER spiked by over 600% in August, reaching an all-time high of $15.79. It has since crashed all the way down to $4.9 after rumors of market manipulation by the team spread on social media. The team has denied the rumor, and the price appears to have stabilized.
5. Galxe ($GAL)
Galxe is a Web3 credential data network that assists developers in creating improved products and fostering communities within the Web3 ecosystem. GAL is the native governance token of the Galxe protocol, which plays a crucial role in the governance and decision-making processes within the Galxe network.
The team’s main goal is to create an “open and collaborative Credential Data Network” whereby user data can be used securely and equitably, unlike with Web 2 social media platforms.
The price of Galxe is $1.177648 with a current market cap of $102.36 million.
Final Thoughts
The Web 2 model of social media is often considered flawed. Content creators put in significant effort, but centralized authorities often take a substantial share of the profits. Meanwhile, users have limited control over their data, which can be harvested and exploited for questionable profit-making endeavors.
Decentralized platforms offer an appealing alternative to this existing pattern. The cryptocurrencies listed here may experience price increases as more users and creators migrate to Web 3 social media, attracted by the promise of a more equitable and user-controlled ecosystem.