Solana Is Yet To Establish A Leading SocialFi Platform

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22 Aug 2024

As Strange As It Sounds
Torum might be unpopular at the moment due to the proposed shift to NFTs and the remodeling of Torum 2.0. However, according to CoinGecko, the market cap of XTM is approximately $6 million. Now, this might not sound like a lot. However, this is at a token valuation of $0.03 after being as high as $2.45 in 2021. Furthermore, compared to SocialFi platforms on Solana, it has the upper hand regarding market cap valuations.
This might sound strange and it is. How is it a predominant SocialFi platform on arguably the world’s most popular chain is yet to surface? WEB3 enthusiasts might be familiar with Bulb and Solcial. These two Solana-based SocialFi platforms enable users to earn and accumulate their respective tokens. However, the market cap valuation of both projects is below a million dollars. Torum’s XTM token is a BEP-20 token and is part of the BNB ecosystem.
Hive is arguably the most well-established SocialFi platform. However, Hive extends beyond SocialFi, into DeFi and other tokenized models. DeSo is another large player in the SocialFi space. These platforms however have independent chains and are not running on top of Solana or any other established layer 1 such as BNB or Ethereum. Significant players within the SocialFi realm operate independently of leading blockchains.
Is This A Trend?
Are serious SocialFi projects more interested in building their blockchains? This is the the question. Do smaller projects built on established layer 1s stand a chance of competing against Hive and DeSo? Subsocial is different as it is a parachain on Polkadot. Essentially, it is also a layer 1 like Hive and DeSo. Or is this a gap for projects looking to build on Solana and other chains?
There are a lot of unanswered questions regarding SocialFi, its future, and its relevance as a niche sector within the WEB3 space. Another point to consider is that projects like Torum, Bulb, and Solcial have lost many users due to token and market cap valuations. An altcoin boom is likely to attract users and bolster token prices. However, is it enough?
A healthy SocialFi platform should have significant on-chain transactional volume. A healthy market cap valuation is also imperative. The native token should also enjoy decent trading volumes on DEXs and CEXs. It’s challenging to ascertain the true potential of a SocialFi project in the current market. Many altcoins are heavily oversold, and SocialFi is taking the brunt.
For example, Bulb’s native token BULB began to appreciate significantly before the recent altcoin correction. The token has since taken a few heavy blows. However, this is to be expected regardless of the state or potential of the project. Investors and holders of tiny micro-caps head for the hills during market corrections. That’s what makes corrections such amazing opportunities… both good and bad go down with the ship.
If you can identify the quality projects amongst the rubble, you will find yourself in the pound seats when the market recovers and heads higher. Bulb has more than 50K users. However, how many users are still actively engaged on the platform? This is true of all the new up-and-coming SocialFi platforms. They have all taken a heavy knock on multiple fronts.

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Final Thoughts
The final half of the bull market is likely to usher in a flood of new projects, including SocialFi. Existing projects will also likely experience a rebirthing regarding usage, adoption, and token valuations. Either way, Solana is yet to establish a true leader within the SocialFi space. All we can do is assess and scrutinize what is currently available and then do likewise regarding newer projects when they arrive. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.