The web3 social platform, CyberConnect, experienced a remarkable 31.2% surge in growth within the past day, following the announcement by Binance Labs about their investment in the company.
Binance Labs, the venture capital arm of the leading cryptocurrency exchange by trading volume, shared on X (Twitter) their decision to reinvest in CyberConnect, emphasizing the potential of the web3 social sector.
“We’ve committed to an additional investment in @CyberConnectHQ, a pioneer in decentralized social networking. We’re excited about SocialFi’s promise in driving Web3 towards more widespread acceptance. Keep an eye out for our upcoming AMA where we’ll discuss the potential for social tie-ins across the digital landscape. Stay alert!”
Following the announcement, CYBER, the platform’s native cryptocurrency, embarked on a rapid ascent, rising by 31.2% and trading at a price of $6.35.
Binance’s choice to back the platform stems from the escalating interest in this particular segment within the blockchain realm.
Web3 social platforms elevate the conventional social networking model, harnessing community-building strategies and decentralized reward mechanisms.
CyberConnect proudly offers a framework tailored for developers, allowing them to design social applications that empower users with complete data ownership and privacy protection.
The prevalent concern over privacy lapses in many web2 platforms has fueled the demand for community-driven platforms. These platforms enable content creation and operation free from the influence of a central authority.
Binance expands web3 investment
Binance Labs holds a reputation for its substantial investments and specialist guidance to numerous web3 startups, aiming to develop decentralized applications that address core needs and challenges within the ecosystem.
Despite market setbacks last year, notably the significant downturns of Terra and FTX, the company’s investment portfolio has burgeoned to a staggering $9 billion.
This year alone, they’ve channeled funds into startups such as Altlayer, Kinza, and KiloEx, not to mention a hefty $15 million investment in the web3 platform, Xterio.
Wider market flips green
While Binance Labs’ investment undoubtedly played a pivotal role in the asset’s surge, several analysts contend that a significant portion of the increase can be attributed to a broader market rally.
Leading cryptocurrency, Bitcoin (BTC), surged to a 16-month peak, surpassing $35,000. Concurrently, altcoins such as Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Ripple (XRP) exhibited comparable growth trajectories.
This widespread optimism in the cryptocurrency market was largely driven by anticipation of a potential Bitcoin ETF greenlight by the United States Securities and Exchange Commission (SEC).
Many industry experts anticipate a rejuvenation of liquidity in the market, suggesting that an influx of fresh capital could trigger the next major bull phase, especially if the ETF secures approval.