Farcaster announced in late May that it had raised $150 million led by Paradigm, with participation from major crypto venture capital firms. This follows reports in March that the decentralized social media platform was looking to raise capital at a $1 billion valuation.

It seems like a good time for Farcaster to raise capital, as the platform has grown strongly at the beginning of the year after launching its Frames feature at the end of January. Frames allows for the integration of interactive experiences in post on the platform, allowing users to play games, watch movies, mint NFTs or make instant payments without leaving the app.

Farcaster's functionality is like a combination of social network X and Reddit. Users can use their accounts to post text-based content, possibly including images if desired, and they can also participate in communities to discuss specific topics. Users sign up with a wallet, which has allowed users to reward fans and community members directly. For example, the popular Base-based memecoin DEGEN started as an airdrop to Farcaster users who were members of the Degen channel.

Ethereum co-founder Vitalik Buterin is also a strong supporter of Farcaster and this is where he posts most of his articles.

To get a Farcaster account, you have to pay $5 a year, but compared to the green tick on X of $8 per month, this may not feel too expensive for active users of the social media platform. Musk's association. However, you can use X and most other social networks for free.

However, Farcaster attracted many new users when the hype around Frames peaked, especially when people started joining the platform in hopes of receiving airdrops from the community or fans. So many people paid the $5 required to maintain their Farcaster account throughout the year.

Farcaster quickly grew from 10,000 posts a day in January to more than 500,000 in March. However, as we saw with another popular social finance platform, friend.tech, explosive growth often occurs. leading to a rapid decline after the hype died down.

For a while, Farcaster's user growth appeared healthy in real-world usage, with the number of casts, or posts, on the platform per day increasing in April, after Frames launched and reached peaked at more than 1.5 million.

But since then, activity on Farcaster has slowed, falling below 700,000 casts per day. This is still a significant number compared to the number of posts the network saw before Frames but is a 50% drop from the April peak. The number of reactions to posts has dropped even more sharply, from 5, 4 million down to only 1.4 million.

Farcaster's daily activity plummets | Source: The Block

However, the number of casting users is still quite high, peaking in late May and retaining much of that growth, with more than 47,500 casters. Farcaster has seen a large exodus of bots recently, however, Dune Analytics analyst Andrew Hong suggests that this could be related to a change in the Warpcaster algorithm (Farcaster's main customer) or analytics. DEGEN tipping supplement.

People may be using both Farcaster and X for their social needs by posting to both or customizing content for one or the other. One thing that X has is a much broader audience, which may appeal to some people.

Its relatively crypto-native user base and ability to participate in like-minded communities have led to some complaints that Farcaster is an “echo chamber,” which may have contributed to the recent decline of the platform. boulder.

It's still too early to declare Farcaster's demise, as early projects often see high growth followed by a decline in activity and usage, and with Farcaster's daily operations still surpassing Lens, one of its biggest competitor in the decentralized social networking space.

Source: https://tapchibitcoin.io/farcaster-giam-manh-sau-khi-tang-dot-bien-trong-hoat-dong-hang-ngay.html