Best SocialFi Projects

5 Best SocialFi Projects in 2024

Social finance (SocialFi) represents the gateway for crypto tap into the missive size of mainstream social media, catering to over 5 billion users globally. Our team has meticulously evaluated over 30 projects in the SocialFi sector, narrowing them down to the top 5 that provide a great mix of design, user experience, robust blockchain models, and compelling token incentives.

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1. Farcaster (DEGEN)

Farcaster has emerged as a leading SocialFi protocol, amassing over 600,000 users with its user-friendly interface and Web3 functionalities. Serving as the backbone for decentralized communication, Farcaster focuses on user control, privacy, and data ownership. Warpcast, an app built on the Farcaster protocol, offers an X(Twitter) experience within this framework. Backed by venture capitalists such as Paradigm and a16z, Farcaster has secured $180 million in funding.

Its hybrid architecture, which combines onchain and offchain systems, offers an optimal blend of the familiar Web2 social media experience with the perks of decentralized finance (DeFi). Although Farcaster does not yet have a native token, it enables content monetization through the DEGEN community token, which acts as a Layer 3 solution. DEGEN has a market cap of $101 million, although its price has decreased by 53% since launching in March, 2024.

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2. Cheelee (CHEEL)

Cheelee ranks second on the list with its innovative video platform that capitalizes on the popularity of short-form, TikTok-style content. Beyond SocialFi, the platform strategically integrates into other prominent narratives, including GameFi and NFTs. Built on the BNB Smart Chain, Cheelee utilizes a dual-token system with CHEEL and LEE tokens. Notably, the CHEEL token has appreciated by 25% in the past year, boosting its market cap to over $1 billion.

Users of the Cheelee SocialFi app can earn cryptocurrency by watching videos, becoming bloggers, or creating their own video content. The platform has disbursed over $11 million to its users via its apps on Google Play and the Apple Store. Users can earn by watching ad-supported videos using Cheelee glasses, which are the main monetization tool with 70% of revenue distributed to users.

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3. Galxe (GAL)

Galxe secures third place as the premier SocialFi platform for community building, allowing users to earn crypto rewards by completing simple quests on social media platforms. The platform excels in onboarding non-crypto natives into Web3 by offering a gateway for them to join both prominent and emerging crypto communities. Galxe enhances users' Web3 experience through a reputation score that mirrors their digital identity in the metaverse and other virtual environments.

Recently, Galxe launched its own Layer 1 blockchain, Gravity, designed for mass adoption and an omnichain future, supporting over 90 million monthly transactions across 34+ chains and serving 22 million users in its ecosystem. Galxe's native token, GAL, has been the best-performing asset on the list, with a 101% gain over the past year and a market cap of $275 million.

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4. Layer3 (L3)

Layer3, not to be confused with Layer 3 blockchains, is currently the fastest-growing SocialFi platform, poised for an imminent "L3" token release and airdrop. As the leading competitor to Galxe, Layer3 utilizes similar community-building and quest-serving mechanics. The platform, which has 1 million users across 25 blockchains, offers a unified access point into various ecosystems and perpetual incentives for user activity.

Beyond community building and social media quests, Layer3 also facilitates decentralized crypto trading and cross-chain bridging. The platform has announced the release of its L3 token for summer 2024, with a total supply of 3,333,333,333 tokens, featuring two burn mechanisms and a unified staking mechanism with three layers of rewards. Of the total supply, 51% is allocated to the community, with 7.5% reserved for an airdrop, fully unlocked at the token generation event (TGE).

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5. Friend.tech (FRIEND)

No list of SocialFi projects would be complete without mentioning Friend.tech. Despite the recent decline in the value of its FRIEND token post-airdrop, Friend.tech remains the most popular social crypto project. The platform allows users to buy and sell "keys," which represent shares of their social influence, turning social capital into tradable assets. By holding these keys, users can access private chats and other exclusive content.

The platform's standout performance metrics are its fees and revenue, having collected $60 million in total fees and generating $33 million in revenue since launching. Friend.tech recently abandoned its plans to migrate to its own native Layer 1 network, Friendchain, after community critiques. Currently, FRIEND is undervalued at $0.28 per coin, with a market cap of $28 million, which is down 83% since its release in May 2024.

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What is SocialFi in Crypto?

SocialFi, short for Social Finance, merges social media with decentralized finance (DeFi), enabling users to monetize their online interactions through blockchain technology. By creating content, sharing posts, or engaging with others, users can earn tokens, transforming social interactions into financial gains. This innovative approach empowers users by providing control over their data and content while offering enhanced privacy and security.

SocialFi platforms appeal to content creators, tech enthusiasts, privacy-conscious users, and investors by offering diverse opportunities for monetization, engagement, and secure data management. Ultimately, SocialFi provides a more integrated and rewarding digital experience, where social interactions can directly translate into financial benefits, especially if a project has a social token.

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How Big is the SocialFi Narrative?

The SocialFi narrative has grown tremendously in 2024, with platforms like Friend.tech and Fantasy.top contributing to its popularity online. As of early May 2024, SocialFi coins boast a combined market cap of over $2.7 billion, with Theta Network (THETA) and Galxe (GAL) having the biggest shares. Notably, Cheelee (CHEEL) can be included as well, boosting the sector by an additional $1 billion.

According to DappRadar, Q2 2024 saw the decentralized app (dapp) industry reach an all-time high with 10 million daily unique active wallets (UAW), marking a 40% increase from the previous quarter. The social sector experienced the largest growth, surging by 66%, averaging nearly 2 million daily UAWs, and now taking a market dominance of 19% ahead of DeFi, GameFi, and NFTs.

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Bottom Line

SocialFi is the fastest-growing crypto narrative for retail investors in 2024. Driven by its potential to tap into the multi-billion-user user base of social media, it helps bring blockchain technology to the masses. Each of the projects we covered offers unique features that blend social media and decentralized finance, providing users with new opportunities for engagement, monetization, and data ownership.

Our top picks for 2024 include Farcaster (DEGEN), Cheelee (CHEEL), Galxe (GAL), Layer3 (L3), and Friend.tech (FRIEND), among others, due to their mainstream popularity and success in onboarding new members into crypto.