Amidst the booming trend of Friend.Tech, take a look at the ecosystem and investment situation of SocialFi in 2023.

Exploring the State of SocialFi in 2023 An In-Depth Analysis Amidst the Rising Popularity of Friend.Tech

Author: Pink Brains

Compilation: TechFlow from Deep Tide

Twitter took 5 years to attract 100 million users, while Facebook took 8 years to reach 1 billion.

And SocialFi is a relatively new concept, gaining momentum in the cryptocurrency field. Are we in the early stages of SocialFi? What is the landscape of SocialFi in 2023? Let’s take a look:

• September Web3 Game Report Increase in Quantity, Entry of Giants, Challenges Remain in User Acquisition and Retention.
• Alipay of the United States, LianGuaiyLianGuail, enters the NFT market, what changes will occur in the market landscape?
• Tokens sharply plummeted! Reddit will shut down community points, community aims to continue independent development.

Sectors and Well-Known Projects

The SocialFi ecosystem is rapidly expanding, encompassing various sub-fields. In general, we can classify it into 3 main levels:

1/ Networks, Storage, and Data

2/ Social Infrastructure

3/ Application Layer

Networks, Storage, & Data

SocialFi decentralized applications (dApps) are primarily built on Ethereum, BSC, and second-layer solutions like Base, Arbitrum. However, we find that SocialFi on Solana and Avalanche is also growing.

In addition, there are some blockchains specifically built for SocialFi, such as Deso and Subsocial.

SocialFi applications can store data directly on the blockchain, use decentralized data storage services, or both. IPFS, Arweave, and Filecoin have long-standing reputations in the decentralized data storage field. Meanwhile, Graph is integrated into many dApps to organize data.

Social Infrastructure

This is the core layer of the SocialFi ecosystem, including the infrastructure for SocialFi dApps. The key element is the social graph, managing the social graph of each user.

Well-known dApps: CyberConnect, LensProtocol, Farcaster.

The second sub-category of social infrastructure is user identity protocols, known as “Identify”.

Well-known projects in this area include: Ens, SLianGuaiceID, UnstopLianGuaible.

The POAP project also strengthens users’ identities by providing proof of participation.

If you are looking for incentivized community activities to participate in, you shouldn’t miss the events on Galxe, Quest, Layer3, and TaskOn.

In addition, there are some tools that facilitate the transition from Web2 to Web3. A typical example is Mask, which has gained widespread attention due to its rapid growth since the end of last year.

Application Layer

The application layer is the most exciting aspect of SocialFi, not only because of its diversity but also because it drives user participation in the ecosystem.

Lens is radically changing social reputation across multiple applications. Notable statistics:

• Monthly transaction volume surged to 4.2 million;
• February saw a record high of 30,000 active users.

Friendtech is a unique SocialFi application on BASE for trading KOL “keys,” including private chats, airdrops, and fee-sharing. Its popularity has skyrocketed, garnering over 100,000 users and generating $25 million in revenue within two weeks. As of October 2nd, the total locked value exceeds 30,000 ETH.

Next Trend

Deeper adoption by large Web2 companies: embracing NFTs, open-source, transparent revenue-sharing programs, and more integrations (like X, Threads, Reddit & Telegram).

Top-tier venture capital firms focusing on seed investments in SocialFi, such as Binance, Solana Ventures, LianGuairadigm, and Coinbase Ventures.

So, do you think we are in the dawn or twilight of SocialFi? How long will it take for SocialFi to attract its first billion users? I hope that through this article, you have gained a rough understanding of the landscape of SocialFi in 2023. Let’s witness its growth together and further explore your favorite projects.

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