The new trend in crypto is definitely SocialFi projects on Ethereum Layer 2 and other top Layer 1 blockchain. Mostly, these SocialFi projects, though there is no financial system rather than a system that rewards users, are supported by the developer teams as they bring incredible volume and new users to the chains in the depressed crypto conditions.
Started with Friend Tech, lots of popular Twitter-like projects reached millions of dollars transaction volume in a period of Epoch, which is around 3 or 4 weeks of point calculation and reward distribution. Among these platforms, some of them are mobile-only, Twitter-focused whereas others integrate both Twitter and in-app engagement to their reward system.
Regardless of the simplicity and copy-paste nature of them, their existence is motivating for me because they have raised a lot awareness of the necessity of blockchain-based Twitter, as we have in Hive ecosystem via Threads, and the shareholder mechanism of content, which can be Proof of Content, in the crypto ecosystem.
The Second Phase, New Pumps
As there will be a saturation point of this SocialFi hype, it will start to lose its popularity and the hype will die out. However, this does not necessarily mean that Friend Tech, partnered with Paradigm, will be totally forgotten. With the diminishing attention on the concept, there will be more focus on the search for a new project that has not gone viral.
This can be a rush into some old projects, Debank Stream, more attention on Reddits' cryptocurrency or driving liquidity back to Friend Tech.
In this phase, I expect some more attention on Hive, LeoFinance, LikeTu as they have a better and long-lasting form of what the hype coins' offeered.
The Third Phase, the Hunt for Sustainability
I think it is going to be the time when Hive will be leading the SocialFi again. The dream of "using Hive products without knowing they are on Hive blockchain" may come true.
The Hive onboarding campaign by LeoFinance will be a great booster of that. As the second phase is over, the SocialFi enthusiasts will look for a project that will be a new home for them. This is likely be the time when we onboard long term Hive bloggers in our ecosystem as they enjoy being on Hive where they feel the real sense of Web3.
As I have observed these transitions in decentralized exchange, yield staking, and memecoin hypes, there is a natural flow that ends up feeding all categories when the time comes. I'm writing the post on a day called Hive Power Up Day. Imagine, this is a community driven project that has its own events as well as a unique learning and earning atmosphere.
In the bull market, Hive will test millions of transactions as it happened before. Also, when we onboard new Splinterlands players and LeoFinance threaders, the same thing may happen depending on the size of the bull market we will see. I care about Hive and its technical chart in the bear market conditions.
The strength of the support channel on TradingView and the authenticity of Hive will attract the SocaiFi enjoyers to the ecosystem.
What do you think about the position of Hive in SocialFi hype?
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Hive On ✌🏼