SocialFi projects were the center of attention, even during the bear market. Now, with the Bitcoin (BTC) halving around the corner, which can trigger the new bull market, can it also kick-start the adoption of SocialFi?
Traditional social media platforms revolutionized the internet and communication as we know it today. However, it has some disadvantages due to the centralized control.
Social media finance (SocialFi) projects run on blockchain technology, bringing in decentralization and better monetization opportunities for the users. The advent of the popular project Friend.tech in 2023 added to the hype of the SocialFi sector.
How User Retention is Primary Hindrance to SocialFi Adoption
The screenshot below shows that in 2023, there are approximately 4.89 billion social media users worldwide. Moreover, the users’ growth is forecasted to hit around 5.85 billion by 2027.
This proves that the SocialFi projects have a large market to capture.
Arash Ghaemi, the growth marketing lead at the SocialFi platform DeSo, believes that the next wave of crypto adoption will come from the consumer-facing apps such as SocialFi projects that people use daily. However, user acquisition and user retention are primary hindrances.
He told BeInCrypto:
“Part of the issue with SocialFi apps today is they are being built on blockchains that weren’t designed for SocialFi. For example, Ethereum was built for decentralized finance, not social media.
“They are what is called a finite-state blockchain, where the state isn’t always changing, and you really only need the starting and ending balance of a transaction to make it work.”
While many believe that Layer 2 can s
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Author: Harsh Notariya
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