From socialcapitalmarkets Written by Ayanika Das
In 2021, Dan Romero and Varun Srinivasan introduced Farcaster, a decentralized, open protocol for social media applications built on the Ethereum blockchain’s Optimism network.
Unlike traditional platforms, Farcaster isn’t controlled by any private company, allowing users to manage their data and online interactions directly, reducing the risk of security breaches.
Farcaster also empowers users to participate in community governance, influencing decisions on network administration and improvement. Its integration with decentralized applications enhances user functionalities, enabling developers to create decentralized social media dApps on the platform.
Farcaster’s unique approach contrasts with traditional platforms like Instagram, X, and Facebook. The following sections provide detailed insights into its operation and user statistics.
Farcaster Daily Active User Count
Farcaster’s daily active user number didn’t see a rise till 2024.
Throughout 2022 and 2023, the daily active user count remained around 1000-4000. However, in 2024, after the Frames feature was introduced on the Warpcaste, the daily active user numbers skyrocketed.
In February 2024, within one week of the launch of the Frame feature, Farcaster witnessed a 400% increase in daily active users.
The daily active user base was around 5000 on Jan 28, 2024, which jumped to 24,700 by Feb 3.
Even the number of daily new casts multiplied. On Feb 3, the volume of new daily casts surged and reached about 2 million, almost a 200% spike from its previous week’s figure of 200,000.
Farcaster Valuation & Funds Raised
Since its inception in 2021, Farcaster has raised funds twice and, in total, 180 million.
Once in 2022, Farcaster concluded the funding round by raising 30 million.
Again this year, in May 2024, Farcaster participated in the fundraising and raised $150 million. Farcaster is now valued at $1 billion following this year’s fundraising.
Farcaster Revenue Generated
The exact revenue figures for the Farcaster year aren’t available.
However, the cumulative year-end revenue of 2023 was $194,110; in July 2024, the figure was $1.91 million.
Within six months, the cumulative revenue graph went up by 883.5%. And this points towards the success of Farcaster.
Registered Users On Farcaster: How many Farcaster users are there?
The ones who have created an account on the network are termed registered users.
Farcaster has not released the exact registered user data for 2022 and 2021.
In 2023, the network welcomed 1,40,000 more to the registered user base. The number of registered users shot up in 2024, and now the exact count of registered users is 5,46,494.
The platform has seen significant growth, especially in 2024, after introducing new features like Frames, contributing to a surge in daily active users.
Farcaster 24h Transactions Count & Volume
Between August 2023 and August 2024, the highest 24-hour transaction count was recorded on February 5, 2024, with approximately 17.63K transactions. On the same day, transaction volume also peaked at $47.99K.
Who invested in Farcaster?
| Investor | Investment Amount | Notes |
|---|---|---|
| Andreessen Horowitz (a16z) | $150 million | Participated in the May 2024 funding round. |
| Union Square Ventures (USV) | Not Disclosed | Known for its focus on the Internet and networked businesses. |
| Multicoin Capital | Not Disclosed | Specializes in blockchain and crypto investments. |
| Coinbase Ventures | Not Disclosed | The venture arm of Coinbase supports growth in decentralized platforms. |
Note: The total funding raised by Farcaster as of May 2024 is $180 million
How Does Farcaster Work?
Not just decentralized; Farcaster claims itself as ‘sufficiently decentralized.’ It uses the word ‘sufficiently’ because Farcaster doesn’t post all its data on the blockchain.
Only the data that needs to be protected and kept secure are stored on the blockchain. Then where are the rest of the data posted?
So, the Farcaster protocol has three layers.
- The first layer is called the App layer, consisting of all the social media applications. The first layer’s social media applications are called ‘Clients.’ This is the layer users usually interact with.
- Next comes the ‘Offchain layer’ hosting the Hubs. Now, hubs are peer-to-peer Farcaster nodes that store all the user-interaction data and messages off-chain. If a user posts a message on the Farcaster in the first place, it gets stored in a specific Hub. From there, the message gets replicated and shared with other Hubs and eventually throughout the network.
- After off-chain, the last layer is the ‘Onchain layer.’ This is the end layer,i.e., the optimism blockchain on which Farcaster positions its contracts. These are the ID Registry, Store Registry, and Key Registry Contract. Each contract plays a separate role to keep Farcaster operational.
For instance, users need their Ethereum address to sign up for Farcaster. The ID Registry contract’s job is to map the users’ Ethereum addresses and integrate them with Farcaster’s user ID.
Again, as you know, user data are stored in Hubs, but the storage space isn’t unlimited. Each user gets a certain number of storage credits.
If users run out of storage credits, they can always buy again. And the Storage Registry keeps track of the number of storage credits each customer owns.
Lastly, the key register generates a new key or access code for users whenever they want to use a new app on the Farcaster to post a message.
The registry does not create keys for unlocking apps. Instead, the keys are generated to allow a specific app to access a particular user account.
This three-layer architecture makes the network user-friendly. Plus, the blockchain layer ensures that users’ data is safe and can’t be tampered with.
Applications Available on Farcaster
There isn’t just one application running on Farcaster. Usually, users are allowed to develop apps on the network. But some of the most prominent apps that Farcaster hosts are –
- Warpcast – This application is like Twitter, where users post, like, and engage with the content. We have already discussed it.
- Paragraph – It’s a decentralized newsletter creation and publishing platform within Farcaster. Users can use this platform to design their newsletters, customize them, and even schedule email delivery. It offers a workflow option for users to automate email delivery. It is an all-rounder platform equipped with analytics and even collaboration features.
- Frens – Designed for Web3 explorers, Frens is a decentralized messaging app hosted on the Farcaster network. On Frens, users get to decide who they want to chat with and have total authority over the conversations because there’s no intermediary involved in between to control their data.
Farcaster Rewards, Monetization Options & Cryptocurrency
Unlike other social media platforms, users can earn on Farcaster.
Farcaster has a primary social media application called Warpcast, on which users can create, share, and engage with each other’s content.
Users can share any post form, image, text, or interactive format.
Posting on Warpcast is called casting, and the posts are known as casts. If users find a specific cast engaging and relevant, they can like, recast (reshare), and even share wraps, an in-app currency.
Other than this way, users can also directly monetize their content through the subscription model. Content producers can provide subscribers exclusive access to premium content or specific frames.
There’s another feature on Farcaster called Frames, which enables the users to enhance their casts and make them more interactive.
Frames are templates users can customize with their content and produce more professionally designed posts. It’s another way for users to interact and remain active on the network.
Plus, you can create customized frames and let others use them in exchange for subscriptions.
As for cryptocurrency, it’s mentioned before that there’s ‘Warp’ in Warpcast, an in-app currency. Other than sharing Warps as rewards among each other, users also need a wrap to perform specific actions on the network.
But Farcaster has its native cryptocurrency, FCT. To earn FCT, users must have loyal followers and remain active on the network by creating content, sharing tips, and framing subscriptions.
Apart from cryptocurrency, the NFT option is also available on the Farcaster. Users can create NFTs and sell them or use them for other transactions.
FAQs
Q1. How much does Farcaster cost?
Users must pay $7 and a gas fee annually to open an account and access Farcaster. This $7 fee is the storage fee for storing 5,000 casts,2,500 reactions, and 2,500 followers.
Previously, this storage fee used to be $5, but now it’s increased.
Q2. How many Hubs does Farcaster currently have?
Per the last count in February 2024, the total number of Hubs on Farcaster was 3,050.
Q3. Is Farcaster available on mobile devices?
Farcaster is only available on mobile devices. Currently, it isn’t compatible with Windows or MacOS. The app is only available for Android and iOS users.
Users must download the Warpcast app from the Google Play or iOS store to use Farcaster.
Q4. What is the total number of casts created since Farcaster’s launch?
From its launch in 2021 to 2024, the total number of casts recorded on Farcaster is 62.58 million.
Q5. Who is the CEO of Farcaster?
The CEO of Farcaster is Dan Romero. He is a former Coinbase engineer and co-founder of the Farcaster protocol, which aims to create a decentralized social network platform.
Q6. What blockchain is Farcaster on?
Farcaster operates on the Ethereum blockchain. The platform uses Ethereum’s decentralized infrastructure to enable a “sufficiently decentralized” social network where users can create unique usernames, post messages, and interact with others across the network.
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