Merkle Manufactory, the company behind the Farcaster network, is close to finalizing a significant funding round that values the company at around $1 billion. This news, initially reported by Bloomberg, marks a major achievement for the Los Angeles-based company. Founded in 2020 by former Coinbase executives Dan Romero and Varun Srinivasan, Merkle Manufactory is set to reach unicorn status as it continues to make an impact in the decentralized social media sphere.

Sources familiar with the matter revealed that crypto investment firm Paradigm is leading the investment round. Merkle Manufactory is known for its two main products: the Farcaster protocol with blockchain integration and Warpcast, a social app similar to X. The Farcaster social media platform has been gaining popularity in recent months.

The company’s last funding round in July 2022 raised $30 million, with a16z Crypto leading the way. Co-founder Dan Romero confirmed the ongoing funding round in a Warpcast post on March 29, stating, “Wanted to let everyone know that Merkle Manufactory is closing a new round of financing,” without disclosing the exact amount.

Romero highlighted Farcaster’s commitment to decentralization in a recent podcast, emphasizing the platform’s design to prevent any single entity from controlling it. The introduction of Frames, a new feature within the Farcaster ecosystem, has led to increased interactivity and functionality, catering to a growing user base.

The introduction of Frames resulted in significant growth for Farcaster, with daily active users surpassing 50,000 in early February, showcasing the platform’s potential in the competitive decentralized social media landscape. The news of Farcaster’s new valuation has been well-received by the community.

According to DappRadar, in the last 24 hours, the number of unique active addresses interacting with Farcaster has increased by 77%, with nearly 9k transactions totaling over $24k. However, over a 30-day period, user interactions with Farcaster decreased by more than 63%, along with a drop in the total number of transactions and transaction volumes.

This data indicates both the potential and challenges faced by Farcaster as it continues to grow and evolve in the decentralized social media space.

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