Threads, Meta's new Twitter competitor, achieved 100 million sign-ups in just five days, indicating initial success. However, recent data from Sensor Tower and Similarweb reveals a decline in growth and user engagement on the platform, as reported by CNBC.

Sensor Tower observed a significant drop in user engagement after the launch, with a 20 percent decrease in daily active users and a 50 percent decrease in average time spent by users.

Anthony Bartolacci, Sensor Tower's managing director, emphasized the need for Threads to offer a more compelling value proposition beyond being "Twitter, but without Elon Musk" in order to establish itself in users' social network routines.

Similarweb's data supports these findings and, in regarding usage time, US users are spending just over eight minutes on the app compared to 20 minutes on July 6.

Meta acknowledged the initial success of Threads and expressed its focus on stability, introducing new features, and enhancing the user experience.

The company clarified that most of the app's growth was organic rather than the result of promotions.

Adam Mosseri, head of Instagram and Threads at Meta, emphasized that news and politics would not be prioritized on Threads, differentiating it from Twitter.

This approach may attract power users seeking a different experience, he added.

Jasmine Enberg, principal analyst at Insider Intelligence, highlighted that Meta only needs one in four Instagram users to use Threads monthly to reach a scale comparable to Twitter.

Similarweb's David Carr suggested that Threads may impact Twitter, as there was a five percent decrease in Twitter web traffic during peak Threads activity.

The potential for Threads to capture significant usage from Twitter may increase as missing features like hashtags and topical search are added.