Zora Crypto Fell 40% After 8x Rally — Is the ‘Instagram Killer’ Already in Trouble?

Key Takeaways:

• ZORA token surged nearly 800% in July, driven by its integration into Coinbase’s new Base App and renewed focus on creator monetization.
• Zora’s “Creator Coin” model lets users tokenize their profiles and posts, earning revenue from trading activity — a Web3-native twist on the attention economy.
• Despite the price rally, platform metrics are declining, and critics question whether Zora’s growth is sustainable or just another speculative pump.

Zora (ZORA) has staged one of the most dramatic comebacks of the summer. After years of near silence, the token suddenly surged by almost 800% in July 2025. The rally rekindled interest in a platform that wants you to tokenize your brunch photos and profit. But is the excitement really justified?

The rise of ZORA is part of a broader narrative about creator monetization, tokenized content, and the potential to replace traditional platforms like Instagram or TikTok with crypto-native alternatives. Still, not everyone is convinced that the fundamentals support the hype.

Despite a sharp rally following the integration with Base App, Zora’s token has entered a correction, falling by around 40% from its all-time high of $0.09944. User activity has remained relatively stable since Zora’s July peak.

On July 27, the platform recorded 13,076 new creators and 9,491 returning ones — its highest levels to date. By Aug. 4, the numbers dipped by 17.6% and 24.3%, to 10,771 and 7,182, respectively. These relatively modest declines point to stable engagement and suggest that users aren’t just showing up — many are coming back.

The crypto community is split. Some believe Zora still has room to rally, pointing to its sticky user base and cultural relevance. Others argue the bears will win out, dragging the token back to its launch levels. Bullish or bearish — the debate is heating up. Check the facts in our latest report.

What’s Driving Zora’s Comeback?

Zora first launched in 2020 as a protocol and marketplace for NFTs, but struggled to compete with OpenSea and faded into obscurity. In 2023, the team introduced Zora Network — an Ethereum Layer 2 built on OP Stack — yet the relaunch gained little traction.

Then in April 2025, the ZORA token went live via an airdrop. It remained relatively quiet for months, until a sharp rally in July turned heads.

$ZORA will be live on April 23, 2025. pic.twitter.com/yZdjlnDohH

— $zora (@zora) April 20, 2025

One of the catalysts behind the sudden surge was the launch of Base App, a new crypto application by Coinbase revealed in mid-July. The app combines wallet functionality with a social feed and tools for interacting with Web3 content — all built on the Base chain.

Zora is among the first platforms tightly integrated into Base App. Users can mint and embed their own tokens into posts with a single tap, earn tips, and monetize engagement. This fits perfectly with Zora’s long-time vision of supporting creator coins and decentralized content economies.

An everything app that brings together social, apps, chat, payments, and trading. https://t.co/i7W0nQhKgt

— Base app (@baseapp) July 16, 2025

The Base App spotlight brought renewed attention to the ZORA token as a key part of this new Web3 ecosystem. Many believe this synergy between creator monetization and crypto-native interaction is what fueled Zora’s explosive growth.

Is Zora the New Farcaster?

In January 2024, the social platform Farcaster introduced its “Frames” feature, briefly catapulting it into the spotlight. At the time, many thought it represented the future of Web3 social networks, but interest faded outside.

Zora’s rise has revived hopes for a meaningful Web3 social experience, with content monetization at its core. But can it succeed where others stalled?

At its heart, Zora allows creators to earn directly from their content. Every user automatically receives a Creator Coin — an ERC-20 token tied to their username (e.g., $username) — with a fixed supply of 1 billion tokens. Half of the supply is immediately available for trading, while the other 50% is gradually unlocked to the creator over five years.

Every post is also tokenized and paired with the user’s coin. With each trade, the creator earns 1% in ZORA. The more activity on your profile, the higher your earnings — potentially. Since users can profit too, they’re incentivized to buy your token and keep the market active. And fans can benefit too by supporting rising creators early.

One popular example is Visualize Value, a Creator Coin by renowned content strategist Jack Butcher.

Most of CT missed zora running up 500% in two days

I mentioned that I have a feeling some new ecosystem is coming up it always happens during massive run ups

Idk if it’s zora yet but jack butchers content and creator coin is defo doing volumes pic.twitter.com/hYbkwHrVrH

— Rahim Mahtab (@Rahim_mahtab) July 30, 2025

Zora’s model stands in contrast to platforms like Instagram or TikTok, where it takes years to build a following and monetize via ads or sponsorships. Here, creators and supporters can both earn — provided demand keeps up.

.@jackbutcher proving that there's money to be made beyond the initial launch of a @zora creator coin.

if you bought the bottom of $visualizevalue post launch spike, you be up over +250% today. smart strategy is to identify creator coins who are likely to remain active on Zora… pic.twitter.com/z7hHxMUgsQ

— 0xDQ.edge (@dennis_qian) July 30, 2025

What’s the Catch?

Despite ZORA’s near-10x price spike after the integration with Base App, platform metrics don’t back up the hype. According to critics, new users are down, transactions have dropped sharply, and contract creation has flatlined — all compared to launch.

$ZORA is going absolute bonkers, but the metrics aren’t matching the pump at all.

– New addresses per month dropped from over 60k at launch to under 10k now
– Retention is falling off most new cohorts stick around for barely 1-2 months
-Contract creation peaked above 100k, now… pic.twitter.com/9eLbt0Uzx5

— Axel Bitblaze 🪓 (@Axel_bitblaze69) July 27, 2025

There’s also growing concern that the platform incentivizes speculation more than genuine content creation. Much of the feed is copied from other networks. Posts only appear if someone buys the token behind them, which can make Zora feel lifeless and inorganic.

My honest take on @zora?

It’s probably the worst thing you could call a social media app.

The design feels half-baked. Nothing really clicks. It’s not about community or real fun. It’s built to pump token prices, plain and simple.

You don’t get a feed that feels yours.… pic.twitter.com/8VwQxthKta

— Kingmaker (@elontrumpp) July 29, 2025

Some even compare the monetization model to a Ponzi scheme. With no ad revenue, brand deals, or organic user growth, Zora seems highly dependent on trading volume and hype to survive.

Whether Zora will become a true creator economy disruptor or simply a fleeting token pump remains to be seen. For now, the market is watching.