Remember Farcaster? Activity on the SocialFi Dapp is Plummeting

Farcaster, the SocialFi dapp once deemed the Twitter killer, has its income stream on life support.

Farcaster has only received $10,000 in revenue in October, with weeks of meager four-figure daily income streams, according to a Dune Analytics dashboard created by pixelhack. The platform has exceeded $1,000 in daily revenue only on four days during October, according to The Block data.

Farcaster brought in $320,000 in revenue in Q3, according to Dune Analytics. That’s a 70% dip from the previous quarter, and a 43% decline from Q1.

On July 1, Farcaster topped $2 million in cumulative protocol revenue since it launched in 2020, only to stagnate and add $300,000 in the past four months.

Farcaster was the talk of web3 after raising over $180 million at a valuation north of $1 billion from Paradigm Ventures, a16z, and Haun Ventures, among others.

User Activity Dipped

User activity has also dipped since its peak in late June. Reactions and casts – the equivalent on X posts – have fallen to roughly 33,000 per day, down from 71,000 at its peak.

Farcaster’s ID registry is also on a significant downtrend. The contract allows users to register, transfer, and recover accounts. It’s is linked to a fld, which is tied to the Ethereum address used during account creation. It has fallen more than 75% to 330 from more than 1,200 in the middle of the year.

Dan Romero’s platform had fallen under scrutiny when analysts called out that activity on the platform was much lower than the Dune dashboard Romero frequently touted. The Defiant ran Farcaster’s API in June and found that daily active users at the time were 90% lower than what the dashboard showed.

SocialFi has been widely considered one of crypto’s potential killer use cases, but that has failed to materialize. Confidence in the sector took a hit when once the darling of SocialFi, Friend Tech fizzled out after developers transferred control over to its burn addresses.