The excitement around Friend.Tech is fading: activity on the network has decreased by 94%
Date: 2023-08-28 Author: Karina Ziganova Categories: IN WORLD
As some cryptanalysts predicted, the hype around the decentralized (dApp) social network Friend.Tech faded as quickly as it flared up. Online activity has also dropped significantly.
The Friend.Tech application, launched on the Base blockchain and designed to tokenize friends on social networks, has lost its network activity. The decline comes after a hugely successful week when the novelty dominated the headlines of the cryptocurrency media.
Activity around Friend.Tech is down
The "SocialFi" or "DeSo" platform, which allowed users to buy and sell shares of X (formerly Twitter) accounts and profiles on other social networks, has ceased to exist.
Buyers and sellers left the platform, resulting in a decline in sales of social media profiles.
According to Dune Analytics, Friend.Tech's daily trading volume peaked at $16.9 million on August 21 and has since dropped 94%. Already on August 27, this figure was only $953,000.
Moreover, the number of daily traders decreased by 91% - from 35,000 on August 21 at the peak to 3080 at the end of last week.
Friend.Tech's network fees also dropped from $1.7 million on August 21st to $95,000 on August 27th.
In fact, everything on the platform, from transactions to MEV bots to new traders, has dropped over 80% from last week.
In addition, industry research company Messari reported user dissatisfaction with high trading fees, long loading times, and unfair pricing.
How it affected Base
The bots infiltrated the network, causing transaction spikes and making outrun trades. The Friend.Tech platform has been a good support for Coinbase's Base L2 network, which has seen TVL growth and high activity last week.
The decline in activity on Friend.Tech caused transactions and activity on Base to drop as well. Now the network processes less than five transactions per second.
Ryan Wyatt, former president of Polygon Labs, commented last week:
“In its current form, we are essentially seeing an unintentional Ponzi scheme, because there is no depth of product features that compels users to use it.”
Moreover, it seems that fake accounts are being created in an attempt to revive the platform.
“It’s very sad to see how developers resort to creating speculative games to attract new people,” says developer icebergy.
There may be a link to adult social media platform OnlyFans, which is reportedly investing in Ethereum.
“It looks like more OF girls will start to become actively involved in cryptocurrencies, as we saw in the case of Friend.Tech,” said one of the developers.
