Decentralized social media platforms such as Farcaster, Lens, and Friend.Tech once held the promise of redefining social interactions. Yet, during the second half of 2024, these platforms have increasingly become ghost towns.
This marks a downturn from the initial SocialFi excitement that fueled the emergence of many platforms.
SocialFi Trend Struggles in 2024: Farcaster and Others Lose Users
Founded in 2020 by Coinbase alumni Dan Romero and Varun Srinivasan, Farcaster was designed as a beacon of censorship resistance and privacy. Users were promised full control over their data and social interactions.
Despite securing $150 million in May 2024, which valued Farcaster at $1 billion, user interest has sharply declined. From over 15,000 new users on February 5, registrations fell to just 545 by September 8. Furthermore, daily active users (DAUs) have decreased from approximately 104,000 in early July to 60,000.
Read more: DeFi Community Building: A Step-by-Step Guide
These shifts shed light on a broader issue within the crypto ecosystem. Despite substantial investments from heavyweight firms like Andreessen Horowitz, Paradigm, and others, the rapid decline in user engagement and financial viability illustrates that investor confidence and user interest can quickly evaporate.
Similarly, Lens Protocol experienced a steep drop in user engagement. After registering over 37,000 new users on February 28, the count dwindled to just 142 by September 8. Its DAUs also declined, from a high of 42,281 in July to just 8,368.
According to some blockchain enthusiasts, the issue lies in the platforms’ approach – they replicate existing Web2 social media functionalities without notable improvements in user experience or interface. In an interview with BeInCrypto, Jerry Lopez, the CEO of Philcoin, shared that new blockchain social media platforms are entering the space with a one-dimensional approach.
“Anyone entering the space needs to remember the giants they are playing against and the challenge of converting those users. If the experience is the same as what they’re used to, or perhaps even less, there’s very little chance of conversion. You have to offer something more or something that seamlessly plays into a user’s every day routine,” Lopez told BeInCrypto.
Meanwhile, the situation with Friend.Tech serves as a cautionary tale. Launched on the Base network in August 2023, the platform initially drew significant interest from the crypto community, generating over $2 million in fees on September 14, 2023. However, now, the platform’s fee generation has plummeted, with recent revenues barely reaching $71.
Read more: What is Friend.Tech? A Deep Dive Into The Web3 Social Media App
As a result, on September 8, 2024, Friend.Tech’s developers renounced control of the platform’s smart contract by sending the ownership and administration parameters to a null Ethereum address. Consequently, future developments or takeovers are now off the table.
“This change does not affect the separate web client operated at Friend.tech which will continue to function as is. No fees from either smart contracts or Friend.tech currently go to the dev team multisig,” the platform announced.
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