X Faces Decline in Daily Usage and Intensifying Competition Amid CEO Departure

The departure of Linda Yaccarino as CEO of X (formerly Twitter) marks a significant moment for the platform as it navigates declining daily usage and increased rivalry from emerging and established social networks.

The State of X: Shrinking Daily Users

Over the past year, X has experienced a 10% decline in its daily active user base, according to Sensor Tower's data for Q2 2025. Although X’s user count remains 65% higher than Meta’s Threads and dwarfs Bluesky, its closest challenger, X’s future as a dominant player is no longer secure.

Recent figures from Similarweb reinforce this trend. In June 2025, Threads was nearly neck-and-neck with X on mobile platforms, serving 115.1 million daily active users—an increase of nearly 128% year-over-year—compared to X’s 132 million, which actually reflects a 15% annual decrease.

Web Advantage and User Engagement

Despite Threads’ phenomenal growth on mobile, X maintains an edge thanks to its strong web presence and deep user engagement. Sensor Tower reports that in the second quarter of 2025, X users spent an average of 31 minutes per day on the platform—almost four times more than Threads’ 8-minute average.

Moreover, nearly half of X’s global monthly app users were daily users, while Threads had a daily usage rate of 33%.

Threads’ Accelerating Growth and Product Integration

Threads’ momentum is buoyed by Meta’s ecosystem. Over the last year, Threads' global app daily users surged by 160%, thanks to the rollout of new features and the seamless funnel from Facebook and Instagram. Meta has also been quick to capitalize on monetization by expanding Threads’ ad platform to global advertisers and piloting video ads in 2025.

X’s Advertising Landscape

Under Yaccarino, X’s ad business made a partial recovery, but volatility remains. Sensor Tower notes growth in ad spending from sectors like media, shopping, and gaming, with these categories now representing a larger share of US ad spend on X compared to 2022. Notably, brands like Samsung, Temu, Apple, Google, Verizon, and Dell have been listed among X’s top advertisers.

Further, US ad spend on X rose 62% year-over-year in the first half of 2025, according to Guideline.

Meta’s Playbook and the Rise of Threads

Meta’s previous experiments in launching new social platforms often resulted in failure. Notable shutdowns include apps like Tuned, Super, IGTV, and Lasso. Threads, however, broke this trend by using Instagram’s user base to jumpstart adoption and leveraging Facebook and Instagram cross-promotion to accelerate growth.

As of Meta's latest earnings, Threads has hit 350 million monthly active users. Meanwhile, Musk claims X now has 600 million monthly actives, though these numbers are no longer independently verified since the company's privatization.

Deep Founder Analysis

Why it matters

The competitive shifts unfolding between X and Threads signal a new era for social networking, highlighting how incumbents and challengers can rapidly change user engagement dynamics. For founders and tech ecosystem players, it underscores the volatility and rapid cycles of dominance—even established giants are vulnerable to disruption if they don’t continually adapt.

Risks & opportunities

The rise of Threads demonstrates that leveraging existing audiences (such as Facebook and Instagram) can short-circuit traditional go-to-market hurdles. However, over-reliance on one platform (like X's focus on web presence or Meta’s on cross-app integration) can create weaknesses—should user preferences shift or technical issues arise. The intensifying fight for user attention opens opportunities for new entrants focused on niche communities, differentiated engagement models, or privacy-centric solutions.

Startup idea or application

Inspired by this landscape, founders might explore launching a social analytics platform that offers real-time insight into shifting engagement patterns across platforms, helping brands and creators dynamically adjust their strategy. Alternatively, an open social graph API—allowing users to port reputations/followings across platforms—could find traction amid increasing platform churn.

Social Media Startups Competitive Analysis X Threads

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