By
Anisha Pandey
June 25th, 2024
Lens Protocol, the decentralized social media platform created by Aave founder Stani Kulechov, is set to receive substantial backing from zkSync, a zero-knowledge technology-powered protocol.
According to sources familiar with the deal, zkSync has committed to providing Lens with a significant amount of tokens to aid its development on its platform.
Although the precise number of tokens allocated to Lens has not been confirmed, insiders suggest that Lens was offered around 0.5% of zkSync’s total token supply. With each ZK token valued at $0.21, this amounts to approximately $22.4 million. This attractive offer reportedly led other blockchain competitors to withdraw from the bidding war to secure Lens.
Neither Matter Labs, the core developer behind zkSync, nor Avara, the parent company of Lens, have commented on the deal’s specifics. This allocation is part of a broader token distribution by zkSync, which recently airdropped 3.6 billion ZK tokens to nearly 700,000 wallets.
Strategic Expansion and Funding
In May, Kulechov revealed that Lens would develop a new version of its platform on zkSync, leveraging its robust infrastructure for the next development phase. Labs’ zkStack, powered by zkSync. This new infrastructure aims to provide the scalability and security required for Lens to enhance its decentralized social media offerings.
In addition to support from zkSync, Kulechov is actively pursuing further investment to fuel Lens Protocol’s growth. He is currently in talks with U.S. venture capital firms to secure an additional $50 million in funding. If successful, this investment would value Lens Protocol at over $500 million, according to sources. However, Kulechov has neither confirmed nor denied these figures.
Alongside Lens Protocol, Avara oversees several other projects, including the stablecoin GHO, the crypto wallet Family, and the lending protocol Aave.
Competitive Environment
This funding is crucial as Lens Protocol aims to strengthen its position in the competitive Web3 social media market. In 2023, Lens raised an additional $15 million, though the valuation details were not disclosed. Meanwhile, its main competitor, Farcaster, recently raised $30 million, valuing the company at $150 million.
Experts have noted the potential of decentralized social media platforms to onboard users seeking more control over their data and content is immense. These platforms aim to disrupt traditional social media by providing more privacy, transparency, and user ownership.
Lens Protocol boasts over 400,000 unique users and nearly as many unique usernames, highlighting its growing popularity. Daily user numbers have increased by approximately an average of 2500, with a robust community of 20,000 to 30,000 active users engaging daily.
Users on the platform produce an impressive 30,000 to 40,000 posts daily, and approximately 250,000 interactions. Lens Protocol has solidified its position as a key player in the decentralized social media landscape, hence the attention it continues to garner from major blockchains.