Farcaster pivots strategy, prioritizing its wallet over the social network

Co-founder Dan Romero said that after four and a half years, the team has been unable to build a sustainable growth engine for the social app, while the wallet is showing momentum that is “as close to product–market fit as anything we’ve built.”

Romero said the social-first model fell short of expectations and failed to scale its audience. He noted that the wallet has become the fastest-growing product in the ecosystem, prompting the team to double down on it. Future Farcaster updates and features will be built around the wallet rather than the social network.

The company expects that users who join for the wallet’s functionality will eventually become long-term participants in the protocol. Farcaster plans to use its existing social infrastructure to add social features to the wallet — but as a secondary layer, not the main product.

The decision drew mixed reactions. Some users viewed the pivot as a pragmatic move amid rising demand for crypto wallets and self-custody solutions. Others worried the shift could erode the platform’s identity and alienate those who joined for a decentralized social network.

Farcaster runs on Ethereum Layer 2, including Base — the blockchain built by crypto exchange Coinbase — and maintains steady usage, but its financial performance remains weak. Protocol revenue in Q4 2025 totaled $1.84 million, almost 85% lower than a year earlier, increasing pressure on the team to find a scalable path forward.

The launch of the wallet, introduced in the app earlier this year, has been one of the few positive catalysts. Romero acknowledged that it is the most promising product they’ve built in the past five years and may finally deliver the user growth the social network was unable to achieve.