PWSHub News

Farcaster's Revenue Surges to $600,000 Following Frames Integration

Farcaster, an Ethereum Layer 2 Optimism-based decentralized social protocol, has seen its total revenue surge to $600,000.

The platform’s rise has been likened to FriendTech, another decentralized social network, which attracted a lot of users initially until it grappled with high fees that led to its failure.

Farcaster initially caught users’ attention in early December 2023 and saw a modest increase in users paying for platform storage.

The second attention wave occurred in late January and peaked in early February. During this time, there was a surge in user signups, daily user activity, and posts, primarily driven by the launch of Frames on January 29, an in-app engagement tool.

Frames have brought about native monetization within the app. Users can offer an NFT to another Farcaster user if they follow the original poster’s account and repost their Frame with this feature. Hence, the excitement of obtaining free NFTs and the possibility of an airdrop have brought more users from Discord and Twitter.

Unlike most social platforms, Farcaster charges ongoing storage fees for its users to host the data generated daily to create revenue. This storage fee is $5 per year for 5,000 posts, 2,500 reactions, and 2,500 follows.

A portion of these fees is allocated to the platform, while some are utilized to cover transaction fees and process credit card information. Clients building on Farcaster can also charge their fees. On Warpcast, the posting fee is $0.01 per post, although many reward mechanisms provide free posts.

While there are several rationales behind implementing fees per post, the main one is preventing spamming activities to create a more authentic and meaningful interaction environment that is attractive to users.

Farcaster Daily Active Users Skyrocket

According to data from Dune Analytics, the number of daily active users on the Farcaster network surged from approximately 5,000 on January 28 to over 172,000 today.

Simultaneously, the number of new daily “casts” increased, surpassing 2.9 million today, a significant jump from 200,000 casts on January 28.

Meanwhile, the last few weeks have seen a huge portion of Farcaster users transition to using the Coinbase-built Base network for on-chain transactions, peaking at 64% of transactions, as per Dune Analytics data. The move has been fueled by low network fees.

In addition, the background of Farcaster co-founder Dan Romero, a former Coinbase vice president, and Jesse Pollak, current protocol lead at the exchange as one of the platform’s most popular users, may have further driven the shift.

Source: cryptopotato.com

Related stories
2 weeks ago - Published 1 minute earlier on Quick Take Farcaster’s latest and biggest wave of attention has resulted in a surge of protocol revenue. Yet the platform faces risks of following in FriendTech’s footsteps unless it can keep its...
3 weeks ago - The social media protocol Farcaster generated a lot of buzz this week, driven by the success of its X-like client, Warpcaster. The standard version of the story goes something like this: In late January, Farcaster released Frames, a...
2 weeks ago - The Chopping Block: Decoding the Crypto Social Revolution: Farcaster’s Rise to Fame! Posted February 15, 2024 at 7:00 am EST. Welcome to The Chopping Block – where crypto insiders Haseeb...
3 weeks ago - Farcaster saw its active users increase by nearly a factor of ten after it released Frames, a feature allowing apps to run inside of Warpcast posts.
Other stories
6 minutes ago - State-owned newspaper cautions Chinese crypto investors despite trading ban Asia • March 3, 2024, 11:54PM EST Published 1 minute earlier on Quick Take State-owned newspaper Economic Daily wrote that investors should...
16 minutes ago - Quant analyst PlanB says that Bitcoin (BTC) has now entered the stage of its market cycle where extreme price pumps and volatility are commonplace.
18 minutes ago - Stay informed with insights on the latest developments and advancements in Stellar (XLM) cryptocurrency. Explore its evolving ecosystem and potential impact.
38 minutes ago - Indonesia's Commodity Futures Trading Regulatory Agency (Bappebti) is reportedly asking the Ministry of Finance to re-evaluate the current tax regime for cryptocurrency transactions.
50 minutes ago - Discover the latest fusion of gaming and cryptocurrency with our in-depth exploration of the top trends shaping the future of Play & Earn gaming in 2024
1 hour ago - At a current market cap of $2.3 trillion, the cryptocurrency market is back in style. Thanks to the surging price of Bitcoin (CRYPTO: BTC), the world's most valuable digital asset, investors might be eyeing other tokens in the hopes...