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The SocialFi sector is expanding its roots in crypto as crypto enthusiasts focus on new SocialFi applications.
Social Finance (SocialFi) is an innovation that improved the vision of a decentralized financial system in the era of social media. Crypto users are expecting big new things in the SocialFi sector amid the recent Friend.tech airdrop.
Crypto Enthusiasts Waiting For The Next Big Thing In SocialFi
The recent Friend.tech airdrop on May 3 resulted in Whales selling over 55,000 of the newly issued Friend tokens (FRIEND). Friend.tech is a blockchain-based social media platform offering token-gated chats.
According to CoinGecko data, on May 3, FRIEND token price dropped from $3.03 to $0.89. The token was trading at $1.96 at press time, after a 9.6% drop intraday.
FRIEND price chart I Source: CoinGecko
The sudden price drop grasped the attention of crypto enthusiasts towards the SocialFi sector, expecting new big things.
According to the K33 Research report, crypto users crave Fantasy Top, a SociaFi application streaming over the Ethereum layer-2 blockchain. The platform permits individuals to buy and sell virtual trading cards of crypto-affiliated X accounts.
Current Trends To Look At In SocialFi
Fantasy Top is emerging as a new trend in the SocialFi sector that allows players to use trading cards to participate in the competition and offers Heroes 1.5% royalties from card trading.
The rapid movement in volume, transactions, and Unique Active Wallets (UAW) just after Friend.tech airdrop on May 3 showcases the booming interest of crypto users towards Fantasy.top.
Fantasy.top Historical Activity I Source: DappRadar
According to DappRadar data, on May 6, Fantasy.top recorded a spike in transactions, hitting 37.14K from 20.59K on May 4. In the same way, UAW also surged from 5.8K on May 4 to 9.87K on May 6.
Moreover, in the past 7 days, the volume hit over $7.06 Million, a spike of 82.48%.
On May 9, Fantasy.top took to X (formerly Twitter) to communicate the Fantasy Genesis Phase wrap-up story.
The Fantasy Genesis Phase has wrapped up ✨
— fantasy.top (@fantasy_top_) May 9, 2024
The first week of Fantasy has been a breathtaking experience.
Capturing the Crypto Twitter attention and revealing unprecedented on and off-chain activities, we're excited by the huge success.
This level of success naturally brings… pic.twitter.com/BgwYGUnW4S
Apart from this, CyberConnect (CYBER) and Cheelee (CHEEL) are some other trends in the SocialFi sector. In the past 24 hours, CyberConnect recorded a spike of 141.87% in UAW, hitting 1.88K with over 1.93K transactions.
Development Of SocialFi: Key Challenges
SocialFi fuses social media with blockchain technology and rewards users for posting high-quality and creative content online. However, empowering users with greater control over the data is not easy; several key challenges exist in the development of SocialFi.
Scalability, market volatility, and regulatory & security concerns are a few of the key challenges that could affect the adoption of SocialFi in the future. Managing large amounts of data and interactions without centralized control could be challenging.
Moreover, with technological advancement, navigating the regulatory landscape and maintaining user security would be a significant challenge.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
