Merkle Manufactory, the company responsible for the Farcaster network, is close to finalizing a significant funding round that values the firm at around $1 billion. This milestone was first reported by Bloomberg and is a major accomplishment for the Los Angeles-based organization.

Founders Dan Romero and Varun Srinivasan, who previously worked at Coinbase, established Merkle Manufactory in 2020. The company is now on track to reach unicorn status as it continues to make an impact in the decentralized social media sector.

Bloomberg's sources revealed that crypto investment firm Paradigm is spearheading the investment in Merkle Manufactory. The company's primary products include the Farcaster protocol integrated with blockchain technology and the Warpcast social app, which resembles X. The Farcaster platform has been gaining popularity lately.

In a recent podcast, Romero underscored Farcaster's focus on decentralization, highlighting new features like Frames that enhance interactivity and functionality within the platform. This approach has led to a surge in daily active users to over 50,000 in early February, reflecting Farcaster's appeal and potential in the decentralized social media field.

Updates from DappRadar indicate a 77% increase in unique active addresses interacting with Farcaster in the past 24 hours, with over 9k transactions totaling more than $24k. However, data over a 30-day period show a decline in user interactions by more than 63% and a drop in transaction volumes to approximately $145,000.