Research Summary
The report provides an in-depth analysis of five decentralized social networks: Farcaster, friend.tech, Lens Protocol, NEAR Social, and CyberConnect. It highlights their user growth, transaction volumes, and unique features. The report also discusses the role of decentralized autonomous organizations (DAOs) and non-fungible tokens (NFTs) in these platforms.
Key Takeaways
Farcaster’s Growth and DAO Involvement
- Farcaster’s User Expansion: Since becoming permissionless, Farcaster has seen a significant increase in user registration, with a total of 24.2k users. The platform’s “channels” feature has gained traction, accounting for 30% of all top-level posts.
- Purple DAO’s Role: Purple DAO, a community-led DAO, has deployed around 60 ETH to fund builders on the Farcaster protocol. The DAO operates a Nouns-style auction, with the average winning bid over the past 30 days being approximately 0.14 ETH.
friend.tech’s Dominance in SocialFi
- friend.tech’s User and Trading Volume: friend.tech has attracted over 430k lifetime users and has a trading volume of $419M. The platform allows users to trade “keys” for access to private chatrooms with influencers.
- Trading Volume Fluctuations: Despite a surge in user activity, daily trading volume has declined from its peak of $20M to an average of approximately $4M in recent weeks. Volume spikes can be observed every Friday/Saturday, coinciding with “points” airdrops for platform activity.
Lens Protocol’s Creator Economy
- Creator Earnings on Lens Protocol: Creators have earned over $489.4k on Lens Protocol, with an average revenue of $38.49. 95% of this revenue comes from collecting posts, a unique form of social interaction.
- Lens V2 and User Retention: Lens V2 introduced ERC-6551, enabling Lens profile NFTs to function as smart contract wallets. The platform enjoys a high retention rate, demonstrating strong user loyalty.
NEAR Social’s Decentralized Network
- NEAR Social’s User Growth and Transactions: NEAR Social has recorded over 278k transactions by 16.6k users since its inception, with a consistent influx of over 50% new users each month.
- User Retention on NEAR Social: Users who joined in October 2022 maintain a retention rate of over 27% after twelve months, while those who joined in January 2023 show a 23% retention rate after eight months.
CyberConnect’s Web3 Social Network
- CyberConnect’s User Operations and Wallets: CyberConnect has seen 516k CyberAccounts deployed on various platforms in the past three months, accounting for 58% of the total ERC-4337 smart accounts across all chains. 953k User Operations have been performed.
- CyberAccount’s Cross-Chain Gas System: CyberAccount utilizes a novel custom cross-chain gas tank system where users pre-deposit native gas tokens from one of the six supported chains and use it on any other chain as gas. So far, 189k accounts have deposited over $885k worth of gas.
Actionable Insights
- Investigate the Potential of Decentralized Social Networks: The report highlights the growing popularity and user base of decentralized social networks. Stakeholders should explore these platforms for their unique features and potential for user engagement.
- Consider the Role of DAOs and NFTs: DAOs and NFTs play a significant role in these platforms, providing funding and enabling unique social interactions. Stakeholders should consider how these elements can be incorporated into their own platforms or strategies.
- Monitor User Retention Rates: High user retention rates on platforms like Lens Protocol and NEAR Social indicate strong user loyalty. Stakeholders should monitor these rates as an indicator of platform success and user satisfaction.
