TikTok has largely rebounded from a temporary decline in active users following a change in ownership, when a consortium of American investors assumed control of the platform’s U.S. operations. This brief downturn allowed rival video-sharing applications, such as UpScrolled and Skylight Social, to experience rapid user growth as some sought alternatives to TikTok.
As per estimates from digital market intelligence firm Similarweb, TikTok’s daily active users in the U.S. dwindled to between 86 and 88 million immediately after the ownership transition, compared to a typical average of 92 million daily active users.
However, the app has since recovered to boast over 90 million daily active users, indicating a return of many users who had previously departed.
During this minor usage decline, competitors like UpScrolled and Skylight Social began to see significant growth. Although both apps remain significantly smaller than TikTok, UpScrolled reached a peak of 138,500 daily active users on January 28, but has since declined to 68,000.
In comparison, Skylight Social achieved 81,200 daily active users according to Similarweb’s estimates, but has now fallen to 56,300. Notably, Skylight Social reported an increase in user sign-ups, reaching a total of 380,000 by the end of January, as shared with TechCrunch.
The decline in TikTok’s usage, which prompted users to explore alternative apps, was not a direct result of the ownership change but stemmed from concerns about its potential impact on user experience. There were rising anxieties surrounding TikTok’s updated privacy policy, which allowed the app to track users’ precise GPS locations. This change coincided with the ownership transition and triggered user backlash over privacy issues, particularly regarding TikTok’s testing of a “Nearby” feed to showcase content from local creators.
Upon reviewing the revised privacy policy, some users found unsettling phrases, such as TikTok’s claim that it may collect information on users’ “immigration status,” among other personal details. However, this reference was included due to the California Consumer Privacy Act (CCPA), which mandates that businesses disclose the collection of certain sensitive data. Essentially, any content shared by individuals on the platform becomes part of the platform’s data pool, necessitating this disclosure.
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Additionally, TikTok suffered from a poorly timed, multi-day data center outage, which hindered the app’s functionality, leading to problems with search, likes, comments, and in-app chat, and causing video glitches. Users interpreted these technical issues as potential censorship, prompting them to seek out alternatives.
On Sunday evening, the company confirmed that the data center outage had been rectified, attributing the disruption to a power outage caused by winter weather.
As users acclimated to the new terms and conditions and the technical glitches were resolved, data from Similarweb indicates that users have begun returning to TikTok. Nevertheless, the newcomers still have a chance to capture the audience, as the firm’s analysis shows a gradual decline in TikTok’s user engagement toward the end of 2025, with daily active users peaking at 100 million from July to October, compared to the current figure of over 90 million.
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