SocialFi is emerging as the new buzz word in the Web3 world

The field of blockchain-based Web3 is full of buzz and the latest one to rise to the top of the heap is called SocialFi. Composed of two words – social and finance – SocialFi is a category of the Web3 sector that brings together social networking and decentralized finance (DeFi). Essentially, the concept of SocialFi is to bridge the gap that exists between existing social networking platforms and Web3. The region is witnessing growth especially in the US, Canada, Germany, France, UK, China and India.

SocialFi apps reward users for posting high-quality content, while also giving them more control over their data and the content posted on social media. There are Barterchain, SocialTrader, Chatmint and Troop Finance Allegedly Some of the popular SocialFi apps available for use.

SocialFi apps are also called DAO or Decentralized Autonomous Organization. These platforms and protocols are not controlled by a single entity, in fact decisions on how to develop these platforms are made based on what their community wants. This protects apps from censorship-related actions, giving users greater control over their rights to freedom of speech and expression.

Apps falling under the SocialFi category come with their own native in-app utility token. These tokens can be used by creators to monetize engagement on their posts through social media. Instead of a company making money from content engagement on the platform, SocialFi apps or DAOs let creators earn capital from their posts and content. The rewards are usually crypto-based.

According to CoinGeckoThe total market cap of SocialFi tokens as of May 9 is $5.28 billion (approximately Rs 44,091 crore). According to a recently published research report, SocialFi’s growth season is already close, ‘competing for attention’ K33 research They say.

In the report, blockchain analyst David Zimmerman said the recent airdrop of $FRIEND tokens by SocialFi platform Friend.tech has been ‘the most highly anticipated SocialFi airdrop ever.’

The report posted on K33 Research also said, “The market is always hungry for the next promoted product. Fantasy Top is running a series of promotional competitions to this end.” Fantasy Top allows users to buy/sell virtual trading cards from Twitter/X accounts and use them to compete in tournaments.

The SocialFi market size is expected to grow from $2 billion (about Rs. 16,702 crores) to $20 billion (about Rs. 1,67,022 crores) in the coming few years. Digital engineering and IT firm systango A research report last year said the SocialFi category of Web3 apps already has 14 million users, of which five million are active.