Farcaster shifted its focus to wallet development - ForkLog: cryptocurrencies, AI, singularity, future

# Farcaster shifts focus to wallet development

DeSoc project Farcaster will focus on expanding its wallet service. The platform’s co-founder, Dan Romero, explained the decision as a result of the failure of their social network-driven strategy.

According to him, after four and a half years, the social-focused approach did not meet expectations.

“We are doubling down on the wallet because it’s showing growth. New features and product positioning will be centered around it,” Romero wrote.

He acknowledged that the team was unable to find a sustainable growth model for their X alternative. However, the previously launched built-in wallet is demonstrating strong performance. According to the developers, over the past five years, this product has proven to be closest to the real needs of the audience.

Farcaster plans to introduce social features into the wallet using the existing infrastructure. The idea is that asset holders will gradually become protocol participants.

The community’s reaction to the announcement was mixed. Supporters called the move a pragmatic path to scalability. Critics fear a change in project culture and its transformation into a tool exclusively for traders.

Source: farcaster.xyz. The protocol runs on Ethereum L2 networks, including Base. In the fourth quarter, Farcaster’s revenue was $1.84 million—an 85% decrease compared to the same period last year.

Source: DefiLlama. Recall that in October 2024, Farcaster’s revenue dropped 96% from its February peak.