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The market capitalization of SocialFi is only 1.7 billion USD, and there is huge potential for future development.
Current Status and Future Prospects of SocialFi Development
SocialFi, as a collection of projects that capture value from social networks using blockchain technology, is still on the fringes of the crypto market. Currently, the total market capitalization of SocialFi tokens is only about $1.7 billion, accounting for one-thousandth of the total cryptocurrency market capitalization, which is far lower than mainstream sectors like GameFi and NFTs. At the same time, there has not yet been a truly killer application in the SocialFi space, and it remains in the early stages.
However, considering the strong monetization capability of social traffic in the Web2 world, SocialFi still has significant growth potential in the future. SocialFi projects have advantages in protecting personal privacy and promoting the redistribution of traffic value, and are expected to change the traditional social platforms' monopoly on traffic value.
Currently, active SocialFi projects are mainly divided into two categories:
Social protocols and graphs: such as Lens Protocol, Farcaster, CyberConnect, etc., dedicated to building decentralized social infrastructure.
Social applications: such as Friend.tech, Phaver, Warpcast, etc., focus on providing users with specific social services.
In the future, SocialFi projects need to further lower the barriers to entry, optimize user experience, and at the same time use token mechanisms to incentivize high-quality content creation. Only by attracting more users to participate can we truly achieve long-term user retention and positive cycles, ultimately driving SocialFi to become the leader of the next social revolution.