Merkle Manufactory, a company specializing in software development for decentralized social-media networks, is on the verge of finalizing a funding round expected to boost its valuation to around $1 billion.
Cryptocurrency investment firm Paradigm spearheaded this notable achievement, underscoring the escalating interest in decentralized social media platforms.
Founded by Dan Romero and Varun Srinivasan, both former executives at Coinbase Global Inc., Merkle’s software serves as the backbone of the Farcaster social media network.
Despite refraining from disclosing the precise funding amount, Romero hinted at the company’s ambitious expansion aspirations in a social media post on March 29.
Merkle’s previous funding round in July 2022 secured $30 million, with a16z Crypto leading the investment, showcasing the company’s rapid ascent.
Farcaster’s Decentralized Vision
The Farcaster protocol, a cornerstone product of Merkle, embodies Romero’s vision of a decentralized global public square.
This protocol is designed to prevent any single entity, whether an individual, company, or nation, from exerting control over it.
The introduction of Frames in January, a feature facilitating the direct integration of external app functionalities into the Farcaster ecosystem, highlights the platform’s innovative approach.
Already, Frames have been utilized for various purposes, from conducting polls to minting non-fungible tokens (NFTs), thus enhancing user engagement.
The Farcaster network experienced a surge in daily active users to over 50,000 in early February, a significant increase from less than 10,000 the previous month, signaling the platform’s burgeoning popularity.
Berachain’s Unicorn Status and DeFi Focus
Simultaneously, the Berachain blockchain platform has attained unicorn status, boasting a valuation of $1.5 billion following a funding round that surpassed $69 million.
Co-led by Brevan Howard Digital and Framework Ventures, this funding event underscores the renewed interest among venture capitalists in cryptocurrency firms, particularly those emphasizing decentralized finance (DeFi).
Berachain stands out due to its compatibility with Ethereum-based applications and its community-driven ethos, exemplified by the enthusiastic turnout at a Berachain gathering attended by over 1,500 individuals.
Despite challenges encountered by the DeFi sector, such as a bear market and scandals in 2022, Berachain’s advancement signals a favorable shift in investor sentiment towards DeFi initiatives.
