[Farcaster valuation soars to $1 billion: Can crypto social app live up to its promise? 】
Cryptocurrency-based social media platform Farcaster is experiencing rapid growth, reaching 50,000 daily active users and a $1 billion valuation. This success has sparked discussion within the Web3 community about the reasons for its popularity and the role of venture capital.
According to on-chain data aggregation platform Dune Analytics, Farcaster had more than 50,000 active users last Tuesday and generated just under 30,000 interactions that day. By comparison, this number of interactions is down 83% from its peak two months ago.
Farcaster’s high valuation has piqued the interest of blockchain analysts, especially since the platform’s data is similar to other social media platforms such as Discord.
Seth Ginn, managing partner at CoinFund, attributes Farcaster’s growth to the abilities of the project’s founder, Dan Romero. Ginn believes that Web3 social projects often have a brief moment of excitement and then fade away, but Romero may be the right person to change that trend.
Meanwhile, tech founder Liron Shapira said on X (formerly Twitter) that Farcaster's impressive growth could be attributed to venture capitalists. He noted that venture capitalists could earn an additional $2000 to $30 million in management fees by investing $150 million in Farcaster rather than returning those funds. Shapira believes that before reaching 500,000 daily active users
