SocialFi Sector 2024 Annual Observation Guide: From Concept to Practical Investment

The Web3 social track is exploding. When social networks meet DeFi incentive mechanisms, users are no longer just data exploited but become ecosystem builders. This is the core logic of SocialFi.

What exactly is SocialFi? Why is it so popular now?

Simply put, SocialFi combines traditional social media (think Twitter, Facebook functions) with crypto economic incentives. When you post, comment, or create content, you’re not working for the platform but directly earning token rewards.

According to dAppRadar’s 2023 report data, the daily active wallet count in the social track (UAW) has reached over 250,000, a 518% increase compared to 2022. What does this indicate? It shows that users are truly using it, not just hyping concepts. The market sees clearly—SocialFi is moving from the lab to the mainstream.

As of early May 2024, according to CoinGecko data, the total circulating market cap of the entire SocialFi token sector has surpassed $4.6 billion, with a daily trading volume exceeding $215 million. Data speaks for itself.

Who is most suitable to play with SocialFi?

Content creators/streamers/KOLs: This is the most direct user group. No need to wait for platform revenue sharing; fans can directly buy your tokens, enabling you to monetize. Friend.tech exemplifies this logic.

On-chain natives: Users with basic blockchain knowledge are naturally more sensitive to SocialFi mechanisms. They require less education.

Privacy-conscious users: Tired of traditional social platforms scraping data? SocialFi platforms usually give you full ownership and control over your data.

Traders/investors: Treat social interactions as financial assets for trading. They focus on token appreciation potential and liquidity.

Community enthusiasts: Want to run fan economies more fairly and transparently? DAO governance + token incentives are a new choice.

Summary: SocialFi suits anyone who wants “social = profit,” with the key being choosing the right platform.

Why will SocialFi take off in 2024?

Three reasons:

1. Infrastructure has matured

• Cross-chain solutions enable applications beyond a single public chain
• Layer 2 scaling solutions reduce usage costs
• Account abstraction simplifies user experience (beginners are no longer deterred by complex operations)

2. More refined token economic models Early SocialFi projects relied solely on mining rewards, causing tokens to crash upon launch. Now, projects are smarter, designing stable funds, burn mechanisms, and multi-tier incentives. Cheelee’s stable fund model is a typical example.

3. User mindset shift Having experienced the 2023 bear market, users no longer expect overnight riches but care more about long-term engagement. The “social + profit” emphasis of SocialFi aligns with this mindset.

Notable SocialFi projects to watch in 2024

Cheelee (CHEEL) - Tokenization of video interaction

Current data: CHEEL $0.52 | Market cap $29.72M | 24h volume $541.19K

This project is based on BNB Smart Chain, using a dual-token model:

• CHEEL: Governance + in-app functions (NFT upgrades, voting, community participation)
• LEE: Utility token for transactions (promoting content, earning from watching videos)

Core innovations: Anti-cheating algorithms + stable fund. The platform channels part of ad revenue, in-app purchases, and NFT trading into a stable fund, using token buybacks and burns to stabilize the price. This means more stable returns for participants.

CyberConnect (CYBER) - Decentralized social graph

Current data: CYBER $0.70 | Market cap $38.64M | 24h volume $76.13K

This is not just a social app but a social infrastructure. The “fan relationship graph” built on it can be used across applications—your follower count on App A can be recognized and utilized by App B.

Technical highlights: Account abstraction makes registration a “one-click” process. Supports multi-chain deployment, breaking down ecosystem silos.

Economic logic: CYBER tokens are used for governance, transaction fees, and premium usernames. Similar to Lens Protocol, building a universal social identity infrastructure.

LUKSO (LYX) - Web3 hub for creative industries

Current data: LYX $0.42 | Market cap $12.78M | 24h volume $268.96K

Targeted at fashion, art, design, and other creative industries. Universal Profiles provide users with a unified Web3 identity, and the ERC725 standard makes identity data management flexible.

Economically, LYX supports ecosystems like NFT issuance, digital collectibles trading, and designer crowdfunding, capable of handling the full lifecycle of digital creative assets.

PoS + EVM compatibility = low energy consumption + high ecosystem compatibility.

Theta Network (THETA) & ThetaFuel (TFUEL) - Decentralized video CDN

THETA current data: $0.27 | Market cap $265.80M | 24h volume $215.85K
TFUEL current data: $0.02 | Market cap $127.32M | 24h volume $23.71K

This project turns idle computing resources and bandwidth into commodities. Your computer can act as a video node, earning TFUEL. The dual-token design clearly divides roles:

• THETA: Network governance
• TFUEL: Transaction settlement and smart contract deployment

For content platforms and streaming services, costs are greatly reduced. For ordinary users, passive earning is possible.

Supports EVM-compatible multi-chain architecture, seamless NFT and DEX integration, with strong ecosystem scalability.

XCAD Network - Tokenization tools for YouTube creators

Current data: XCAD $0.01 | Market cap $1.02M | 24h volume $29.47K

This project is about “Watch-to-Earn” (Watch-to-Earn). Fans earn tokens by watching YouTube videos, and creators can issue their own fan coins.

Key advantages: Browser plugin integration allows seamless participation without needing a decentralized wallet. Multi-chain deployment on (Ethereum, Zilliqa, BSC, Polygon) enhances liquidity.

Total supply capped at 2 million tokens + creator pool staking incentives, designed for long-term value support.

Friend.tech ### - Tokenized social influence

The most straightforward gameplay: buy and sell “stocks” of any user—essentially access rights. Buying a certain influencer’s “stock” grants entry to their private groups and exclusive content.

Built on Base chain, trading volume exploded immediately after launch, showing high user acceptance of “social assetization” logic.

But it also exposes issues: early security risks, unstable user retention. The upcoming V2 version introduces POINTS tokens and supports staking and mining with Ethereum and POINTS, responding to user feedback.

( Open Campus )EDU### - Web3 education

Current data: EDU $0.14 | Market cap $91.79M | 24h volume $25.71K

Reorganizing educational resources via blockchain. Students, teachers, content creators can all participate and earn EDU tokens. Integrates third-party platforms like TinyTap, GEMS, Genesis, covering materials from kindergarten to high school.

EDU tokens are not just for trading but also support DAO voting and platform governance, fostering a real sense of ownership among users.

( Hive )HIVE### - Self-built blockchain social media

Current data: HIVE $0.09 | Market cap $46.35M | 24h volume $18.30K

Based on its own blockchain, independent of Ethereum. It offers:

• Extremely low transaction fees (essentially no fee)
• High throughput supporting large-scale applications
• Fully decentralized content moderation

Users can post, vote, comment and earn HIVE. The ecosystem also supports gaming, e-commerce, and other diverse applications, with strong scalability.

( Steem )STEEM( - SocialFi veteran

This project predates others by several years. Proof of Brain mechanism ensures creative content gets rewarded, and no transaction fees keep participation costs minimal.

DPoS consensus + token staking system guarantees both speed and decentralization. STEEM and Steem Dollars )SBD### dual-token system caters to different scenarios.

Though older, its ecosystem continues evolving, maintaining ongoing appeal for developers and regular users alike.

( Chingari )GARI### - Video social on Aptos

Current data: GARI $0.00 | Market cap $895.43K | 24h volume $34.67K

Built on Aptos, achieving 1200 TPS, making microtransactions almost imperceptible. Users can create, interact, and live stream to earn GARI.

Compared to others, its main feature is the combination of high throughput and low cost—fast and cheap.

( Lens Protocol - Modular social infrastructure

Built on Polygon, focusing on “content ownership.” Your followers, follower count, and posting history are stored as NFTs and can be used across different apps.

Key innovation: No forced lock-in within a single app. You can use multiple Lens-based social apps, and your follower graph always follows you. This offers unprecedented freedom for creators.

PoS mechanism is efficient, and modular design makes development and expansion easy.

4 Key Questions to Consider Before Investing in SocialFi

1. Can the project’s tech stack handle user growth?
Look at TPS, cross-chain support, infrastructure choices. Theta’s multi-chain design and Chingari’s Aptos choice directly address this.

2. Is the token economic model self-consistent?
Avoid projects relying solely on mining rewards. Check for stability mechanisms, burn designs, and long-term incentives. Cheelee’s stable fund and Open Campus’s DAO governance are plus points.

3. Are there real users?
Daily active users, trading volume, number of token holders—these are key indicators. Data doesn’t lie.

4. Is the risk within your capacity?
SocialFi remains a high-risk sector. Token prices can be volatile, and project operations carry risks. Only invest what you can afford to lose.

What does the future of SocialFi look like?

Short-term: Continued differentiation. Good projects will grow steadily with real users and refined token economies; poor projects will fade away.

Mid-term: Cross-chain and modular infrastructure will dominate. Platforms like Lens Protocol will attract more ecosystem projects.

Long-term:

• User data ownership will become standard—a core revolution against traditional social platforms
• More professional creators will emerge with direct monetization paths
• AI tools combined with SocialFi will trigger explosive growth in personalized experiences
• Social commerce )Social Commerce will seamlessly integrate

But beware of risks:

• Token volatility may lead to unmet profit expectations
• Regulatory policies are still evolving, with ongoing policy risks
• On-chain security incidents happen from time to time; choose platforms carefully

Final reminder before entering

The SocialFi sector has moved from concept to application, but risks still exist. Focus on several dimensions:

• Technical stability: Are there security records? Is performance up to standard?
• Community activity: Are users genuinely participating or just shell operations?
• Innovation level: Is it imitation or innovation?
• Token economy: Can it sustain long-term viability?

Choosing the right project may be a great entry point into Web3’s future. Picking the wrong one is just paying tuition.

The choice is yours, but data will help you make decisions.