Bluesky is leveraging a recent surge in user acquisition by rolling out new features aimed at enhancing user engagement and attracting specific communities. The social network introduced cashtags for discussing publicly traded stocks and LIVE badges to signal when users are live-streaming on platforms like Twitch. These additions come as Bluesky experienced a significant boost in app installs following controversy surrounding deepfake content on X.

According to data from Appfigures, Bluesky's iOS app downloads in the U.S. jumped nearly 50% in the week following the widespread reporting of the X deepfake news. Prior to the controversy, Bluesky typically saw around 4,000 daily installs in the U.S. From December 30, 2025, through January 6, 2026, downloads totaled approximately 19,500. This figure rose to 29,000 between January 7, 2026, and January 14, representing a 49% increase.

The introduction of cashtags positions Bluesky to potentially capture a segment of users interested in financial discussions, similar to how they function on other platforms. LIVE badges, meanwhile, aim to integrate the platform with the growing live-streaming market, allowing users to easily share their Twitch streams and potentially attract viewers from Bluesky. These features could help Bluesky retain new users gained during the recent influx and establish itself as a platform for specific interest groups.

Bluesky, a decentralized social network, has been positioning itself as an alternative to more established platforms like X. The company's strategy involves building a platform with greater user control and a focus on community moderation. The recent controversy surrounding X, and the subsequent investigation by California's attorney general into xAI's chatbot over the creation of nonconsensual sexually explicit material, presented Bluesky with an opportunity to attract users seeking a safer online environment.

Looking ahead, Bluesky's success will depend on its ability to maintain user growth and effectively moderate content. The new features, while promising, will need to be actively promoted and supported to gain traction within the platform's user base. The company's continued development of its decentralized technology and its commitment to user safety will be crucial factors in its long-term viability in the competitive social media landscape.