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Merkle Manufactory, the brains behind the Farcaster network, is reportedly on the brink of securing a major funding round that values the company at approximately $1 billion.
This development, first reported by Bloomberg, is a significant milestone for the Los Angeles-based firm.
Former Coinbase executives Dan Romero and Varun Srinivasan co-founded the company in 2020. Now, it is poised to hit unicorn valuation as it continues to make waves in the decentralized social media space.
According to Bloomberg, quoting sources familiar with the matter, crypto investment firm Paradigm is leading the investment charge.
Merkle Manufactory boasts two flagship products: the Farcaster protocol with blockchain integration and Warpcast, a social app similar to X. The Farcaster social media platform has been gaining traction in recent months.
The company last secured funding in July 2022, raising $30 million in a round led by a16z Crypto. One of the co-founders, Dan Romero, a former vice president at Coinbase, confirmed the ongoing funding round in a Warpcast post on March 29.
In the post, he said, “Wanted to let everyone know that Merkle Manufactory is closing a new round of financing.” However, he stopped short of disclosing the exact amount.
In a recent podcast, Romero emphasized Farcaster’s core principle of decentralization, stating that the platform’s design aims to prevent any single entity from exerting control.
He highlighted the introduction of Frames, a new feature within the Farcaster ecosystem that allows for enhanced interactivity and functionality, catering to a growing user base.
The introduction of Frames sparked remarkable growth for Farcaster, with daily active users surging to over 50,000 in early February, a stark increase from previous months. This surge in engagement and user numbers underscored the platform’s appeal and potential in the competitive landscape of decentralized social media.
News of Farcaster’s newfound valuation seems to have gone down well among its community.
According to DappRadar, in the last 24 hours, the number of unique active addresses interacting with Farcaster has gone up by a whopping 77%, with nearly 9k transactions worth more than $24k carried out between them.
However, over 30 days, the picture hasn’t been as rosy, with the number of users interacting with Farcaster falling by more than 63%.
Additionally, the total number of transactions made between wallets dropped nearly 60% in that time, a percentage drop also witnessed in Farcaster’s transaction volumes, which amounted to about $145,000.