Every bull run in crypto space is a thrilling moment for crypto enthusiasts at some point we are all looking forward to another market peak where most cryptocurrencies will be reaching a new all time high (ATH) with bitcoin and altcoins leading the market with trillions of dollar worth of trading volumes.
NFTS and DeFi frenzy in 2021
The evolving crypto space and blockchain technology in 2021 marked a turning point for art piece and decentralized exchanges, it was a year of tremendous growth, excitement, and innovation, as these two key emerging innovation in 2021 were the driving force behind the surge of Non Fungible Tokens (NFTs) and Decentralized Finance (DeFi). NFTs gained unprecedented attention, captivating both the art world and the tech savvy, a remarkable aspect in NFTS was the sale of digital art and collectibles for jaw dropping amounts. Iconic works from digital artists, musicians, and even tweets were auctioned off, with some fetching millions of dollars. This new innovation bridged the art world with blockchain technology showcasing it full potential to revolutionize the way we value and trade artistic digital assets.
Meanwhile, the decentralized finance (DeFi) space continued to flourish in 2021 built on blockchain technology DeFi enable users to engage in financial services without the need of intermediaries. They offered a wide range of services, from lending and borrowing to yield farming and decentralized exchanges. What made them particularly exciting was the explosive growth in the total value locked (TVL) of over 250 billion locked in a short period shows the boom in DeFi exchange was really a game changer to disrupt centralized exchanges the TVL represents the total amount of assets locked within DeFi protocols. In 2021/22, this number soared to the tens of billions of dollars, demonstrating the increasing trust and adoption of DeFi as an alternative to traditional finance.
NFTs and DeFi created a perfect storm of hype, innovation, and institutional interest for crypto space in 2021 The sales of multi million dollar NFT and the interest in decentralized finance attracted Institutional players, who had been cautiously observing the crypto space they saw an opportunity they couldn't resist but to tap into great wealth from the two technologies the hype was a booster that triggered the last market bull run although with institutions like Microstrategy, Tesla and reputable hogh profiles leaders like Elon musk embracing cryptocurrencies which spark crypto market to attain trillion dollar market capitalization in the last bull market.
The new hype what's coming next
Hypes are good as they could be used to attract millions of users and investors but a sustainable hype with real usecase and utility is what will drive a perfect bull run, with speculations surrounding bitcoin spot EFT and ethereum looking to get approved in 2024 there are certain key factor that will be used to trigger the next bull run they are the emerging web3 social finance (SoFi) social media which are becoming the new trend for lot of crypto investors and institutions will these SoFi combined with the upcoming market bitcoin halving start a new market boom in the coming year?
Web3 are the next generation of the internet they are featured on decentralized blockchain technologies it is envisioned to a more user centric and privacy where individuals have greater control over their data and digital identities, it aims to empower users to own, control, and benefit from their online presence and data while SocialFi brings the principle of social media to leverage on decentralized web3 service in order to allow users to manage and own their social presence without the need for intermediaries.
The limitations surrounding web2 social media like shadow ban, lack of freedom of expression control of data and censorship driven makes them less attractive for privacy focus users with SocialFi which works on the principle of decentralization aiming to rectif flaws associated with web2 centralized social media to mention a few of these SoFi platforms which are already attracting thousands of users on a daily basis making web2 social media a bit outdated we have seen the likes of frends tech, phaver and posh tech social media that are leveraging blockchain technology to give content creators a better monetization experience.
With most socialFi platform having key features like monetization which gives users incentives to earn while creating content, total data and privacy eccentric, digital ownership and censorship free allowing users to express their views without been ban all make socialFi a new trend that will be disrupting web2 social and as well be used to trigger the next market bull run as we have seen previously with NFTS and DeFi
With web2 social users statistic of over 4.9 billion active social users in the world which represents 59.9% of world population a fraction of these users on socialFi will be used to start a new mass adoption campaign of onboarding more users to the decentralized space of blockchain technology with the feature socialFi are offering to create a new Paradigm of social networking there are good chance they can be a good booster to trigger the next bull market by attaining a large market capitalization data from Coingecko Shows socialFi have a realized market cap of over $1.16 billion as they gain more users trust and popularity these figures could rise exponentially long term.