AI Catalyzes SocialFi’s growth -- Abdul Al Ali, Venture Investor at Decasonic
SocialFi—the fusion of decentralized social networks and tokenized economies—is rapidly evolving, reshaping how users connect, create, and monetize. To ensure long-term sustainability, we see AI as a critical catalyst for driving scalable and enduring adoption. AI’s integration into SocialFi presents a growing opportunity to enhance engagement, personalization, and economic durability. With this in mind, we’re excited to share our 2025 AI x SocialFi Market Map, mapping the key players and trends shaping the future of the SocialFi ecosystem.
Platforms operating in SocialFi aim to enable users to trade, participate in on-chain activities, own their presence and identities, and join tribes of like-minded communities. Unlike Web2 platforms such as X, Instagram, and TikTok, where monetization is centralized on platforms, SocialFi aims to redistribute value back to users through on-chain incentives, decentralized identity and governance, and creator-owned communities. My colleague Kathy Tong previously created a SocialFi Market Map 2024 linked here: link.
SocialFi is still early in driving long-term adoption and sustainability. The primary challenges include:
Over-financialization – Many SocialFi models have prioritized speculative mechanics over genuine engagement, leading to perishable growth cycles. This was a key learning for platforms like Friend.Tech, whose early traction was overshadowed by speculation-driven volatility, ultimately stalling its long-term adoption trajectory.
High Churn Rates – User retention remains a major challenge. Many participants engage in SocialFi for airdrop farming or short-term token incentives. Addressing Product-Market Fit (PMF) is a relentless challenge, as current engagement models are largely driven by financial incentives rather than organic network effects.
Lack of Distribution – Building a successful SocialFi application requires strong user onboarding and distribution. However, many projects struggle to scale, limiting their reach and adoption.
Platforms like X, Instagram, Facebook often display strong network effects, which limits the durability of SocialFi platforms.
These recurring cycles of boom-and-bust—where SocialFi projects experience rapid hype, followed by declining engagement—remain one of the ecosystem’s core challenges. The pattern is evident when looking at the existing landscape.
Friend.Tech (2023) pioneered tokenized influencer shares, driving a surge in activity before collapsing under speculative volatility.
Fantasy Top followed, sustaining mindshare due to its Social Trading and engagement mechanics.
More recently, Tribe.Run, Clout.Me, and Glympse.Fun gained traction in the past few weeks but have relatively plateaued in mindshare, reinforcing the short lifespan of speculative-driven SocialFi cycles.
These categories center around creator tokens and social trading, providing opportunities for creators to tokenize their attention, content, and communities.
Memes x SocialFi
At Decasonic, we view Memes as a subcategory of SocialFi. Meme tokens are inherently attention-driven assets, sustaining their tokenomics through community engagement and virality. The same principle applies to SocialFi—platforms thrive as long as they capture sustained attention and interaction.
Key metrics as of Feb 17, 2025:
The Meme market cap stands at $78.06B, while SocialFi remains at $1.371B.
On Kaito, memes command 10% of Web3 mindshare, whereas SocialFi discussions account for 1.5%.
However, both Memes and SocialFi have seen declining mindshare, ranking among the top sector losers this month (-74bps and -16bps, respectively).
The SocialFi Journey
Web3 SocialFi has undergone continuous iteration, refining past models while addressing lessons from previous boom-and-bust cycles. Notable projects shaping SocialFi today include:
Farcaster (2021-Present) – A social protocol emphasizing on-chain identity and AI-driven social interactions.
Warpcast (2023-Present) – Built on Farcaster, integrating AI Agents to enhance engagement.
Supercast (2023-Present) – A minimalist, feature-rich Farcaster client for power users.
Phaver (2023-Present) – A mobile-optimized, community-driven Farcaster client with gamification elements.
Friend.Tech (2023) – Introduced tokenized influencer economies, but collapsed due to hyper-financialization.
Worldcoin (2024-Present) – Focuses on proof-of-personhood, ensuring AI-generated content does not get prioritized over human interactions. (We previously created a Worldcoin ecosystem market map here: link).
AI Agents (2024-Present) – The rise of AI-driven influencers and autonomous engagement tools within Web3 social platforms.
AI as SocialFi’s Catalyst
We believe AI will be the inflection point that shifts SocialFi from speculation-based cycles to sustainable, durable engagement. Unlike past SocialFi waves that relied on financial incentives alone, AI-integrated SocialFi introduces:
Persistent & Personalized Engagement – AI Agents create dynamic interactions tailored to individual users.
Agents co-exist in SocialFi platforms offering personalized companionship for users, leading to durable engagement and retention.
AI-Generated Content & Distribution – Automated content creation expands audience reach. The more personalized the content, the greater the opportunity for durability and retention.
Adaptive Monetization Models – AI-driven tokenomics optimize incentives beyond speculation-based cycles.
Tokenomics can be optimized through adaptive, AI-driven models.
AI Agents: The Next Evolution in SocialFi
Three primary AI x SocialFi models are emerging:
Hybrid AI-Human Platforms – AI Agents and humans coexist, collaborating in social ecosystems.
Human-Only Social Networks (Worldcoin) – Platforms prioritizing humans over AI.
AI-Only Social Networks – Autonomous AI-native communities, where AI Agents interact, transact, and create their own economies.
Relevant to the integration of AI Agents in SocialFi is the number of agents currently integrated on X and other platforms. Notably, AIXBT, an AI influencer on X providing Web3 analytics, recently surpassed top ecosystem leaders like Toly (Solana), Mert (Solana), and Jesse (Base) in mindshare.
Decasonic’s AI x SocialFi Market Map
We map the AI x SocialFi landscape across two axes:
X-Axis – AI standard layers: Compute → Data → Model → Interface → Application.
Y-Axis – Target audiences: Web3 Natives, Developers, Users, and Mainstream Audiences.
Note, as with previous market maps and continued iterations - This is a dynamic landscape, with new applications continuously emerging as AI accelerates SocialFi’s transformation.
The Three Pillars of AI x SocialFi
1. Infrastructure:
Blockchain – AI-optimized blockchains designed for on-chain reputation, governance, and decentralized identity, ensuring transparency and immutability in SocialFi interactions.
Tooling & Frameworks – Developer kits and SDKs that enable seamless AI and blockchain integrations, providing building blocks for next-gen SocialFi applications.
Data – AI-enhanced on-chain/off-chain identity linking and social graph creation, ensuring platforms can deliver personalized user experiences while preserving decentralization.
Compute – AI-native compute infrastructure that supports scalable AI models, enabling real-time engagement, content generation, and intelligent matchmaking in SocialFi.
GenAI – AI-driven tools facilitating automated content creation, curation, and moderation across decentralized social platforms, fostering continuous engagement.
Social Trading – AI-powered social trading platforms that integrate market insights, predictive analytics, and automated strategies, driving more informed trading decisions.
Example: Empyreal enables intent-driven trading directly from X, streamlining social-driven market activity.
2. AI Agents:
Influencer Agents – AI-powered digital personalities that engage with audiences, curate content, and interact autonomously on SocialFi platforms, creating new monetization opportunities.
Streamer Agents – AI-driven live-streaming entities capable of real-time gaming commentary, social interactions, and esports engagements, expanding content production at scale.
Podcasts Agents - AI-generated podcast hosts capable of autonomously narrating, analyzing, and repurposing content into audio experiences for Web3 audiences.
Example: FomoRadio transforms crypto news and narratives into AI-generated podcasts.
DAOs – AI-driven decentralized autonomous organizations (DAOs) where AI Agents govern decision-making, optimize community incentives, and automate governance frameworks.
Example: Vader AI, an AI-powered DAO investing in AI-native projects.
Commerce – AI Agents facilitating on-chain transactions, NFT commerce, and personalized AI-driven shopping experiences, streamlining Web3 commerce.
AI-Native Social Networks – Decentralized social platforms integrating AI-driven social mechanics, where AI Agents autonomously create and interact within digital communities.
Example: Stardom AI integrates AI Agents directly within users’ social feeds for personalized engagement.
Launchpad – Platforms enabling users to create, train, and deploy personalized AI social companions, tailored for interactions within Web3 communities.
Example: Virtuals Protocol, which played a pivotal role in launching thousands of AI Agents across SocialFi and Web3 applications.
3. AI:
InfoAI – AI-powered platforms offering wallet analytics, on-chain tracking, and portfolio insights, helping users make informed Web3 decisions.
Example: Kaito, which delivers AI-driven mindshare, narratives, and project tracking analytics for Web3 users.
Commerce – AI-powered Web3-commerce tools that enhance creator monetization and brand engagement, driving personalized and tokenized economies.
Example: Kiki World connects users with creators and brands via AI-enhanced commerce platforms.
Social Trading – AI-enhanced market prediction models, signal discovery, and peer-to-peer trading analytics, empowering users with real-time insights and strategies.
Memes – AI-native meme ecosystems that leverage AI for meme creation, virality tracking, and engagement optimization, driving Web3’s cultural and social trends.
Example: Fartcoin, launched following a conversation with Truth Terminal, reflects AI’s role in memetic tokenization.
AI x Streaming – AI-driven gaming and esports integrating AI Agents as players, commentators, and training tools, unlocking new monetization and engagement models.
Dating Platforms – AI-powered matchmaking and personalized interaction models, leveraging AI’s ability to analyze behavioral data for enhanced user connections.
Ecosystem Integration – Platforms embedding SocialFi as a key offering within larger AI-integrated ecosystems, expanding user engagement across multiple verticals.
Example: Zentry, which integrates SocialFi within its broader AI-driven ecosystem, including gaming applications.
AI NFTs – AI-generated and AI-enhanced NFTs, bridging digital identity, collectibles, and AI-driven utility use cases in SocialFi.
AI Quest Platforms – AI-driven gamified rewards and engagement quests, driving participation through interactive AI-enhanced missions within Web3 communities.
Wellness – AI-powered personalized fitness and health coaching, integrating SocialFi mechanics for gamified incentives and engagement.
Identity - decentralized identity solutions enhancing user sovereignty, verifiable credentials and authentication accross Web3.
Reputation - AI enhanced reputation and trust models that analyze on-chain behavior, social interactions, and transaction history to establish credibility in decentralized networks.
Opportunities at the AI x SocialFi Intersection
For SocialFi to achieve mainstream adoption, three core levers—reach, retention, and conversion—must be optimized. AI plays a crucial role in enhancing each, ensuring that users can seamlessly discover, engage, and transact within SocialFi ecosystems.
Finding Your Tribe – AI enhances personalization by intelligently matching users with like-minded communities, optimizing content discovery, and improving recommendation systems.
Meaningful Relationships – AI accelerates relationship-building within SocialFi by improving social liquidity—the ability for users to form connections efficiently.
Social Tribes Around Economics – AI integration strengthens tokenomics, ensuring sustainable value flows within social ecosystems.
Social DeFi – AI enables users to seamlessly integrate financial transactions into their social interactions (e.g., on-chain transactions within social feeds).
Human-to-AI Relationships – The rise of AI-powered digital twins, autonomous agents, and AI-enhanced social engagement expands the definition of relationships in SocialFi. AI companions can act as influencers, collaborators, or even financial advisors, increasing retention by offering persistent, interactive experiences.
Co-Creation With Your Tribe – AI unlocks new forms of collaborative content creation, allowing users to co-develop media, tokenize contributions, and build community-driven economies.
Conclusion
The AI x SocialFi Market Map 2025 underscores a fundamental shift in how social networks, AI-driven agents, and decentralized economies converge. Unlike past SocialFi waves that had challenges of long term retention, AI unlocks persistent engagement, intelligent monetization, and adaptive social experiences—bringing SocialFi closer to mainstream adoption.
At Decasonic, we believe AI is the key unlock for long-term adoption in SocialFi. Whether through AI-driven governance, hyper-personalized engagement, or autonomous digital agents, the next wave of SocialFi will be defined by AI’s ability to create and sustain network value beyond financial incentives.
If you’re a builder, innovator, or investor exploring the AI x SocialFi frontier, we’d love to collaborate and hear your insights. Reach out to us at Decasonic—together, we can shape the future of this new frontier.
The content of this material is strictly for informational and educational purposes only. It is not intended to constitute investment advice, nor should it be considered a recommendation or a solicitation to buy, sell, or hold any asset. Decasonic does not endorse investments in any specific tokens, and nothing in these blog posts should be construed as legal, tax, or financial advice. Please consult with a qualified professional advisor before making any financial decisions. Decasonic provides no warranties, whether expressed or implied, on the content provided in these blog posts, including its accuracy, completeness, or correctness. The opinions expressed here are those of the authors and do not necessarily reflect the views of Decasonic. Please note that Decasonic may hold a position in some of the tokens mentioned, including Virtuals. Decasonic is not liable for any errors or omissions in the content of this material or for any actions taken based on the information provided herein.
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