The decentralized social network Friend.tech, recently experienced a dramatic rise in its total value locked (TVL), reaching a notable $20 million, having doubled in just four days.
Merely two weeks prior, several skeptics hastily deemed the platform “defunct” due to the apparent reduction in user activity.
Unexpected Rebound in Trading Volume
In a surprising turn of events, Friend.tech’s user engagement has made a remarkable comeback over the past few days. On September 9 alone, the app saw a daily trading volume of $12.3 million, which ranks as its third-largest to date, based on the data sourced from Dune Analytics.
Interestingly, as highlighted by the pseudonymous TylerDidIt, Friend.tech’s trading volume on that day surpassed OpenSea, besting the famed NFT platform by a whopping $3 million.
Speculations Behind the Sudden Surge
The crypto community has been abuzz deciphering the reasons behind this unexpected surge. Hsaka, a renowned trader, humorously posited that the upswing in TVL might be due to users recognizing Friend.tech chats as essentially “rebranded yield farms.” This remark references the prospective profits from the 5% commission procured whenever users transact someone’s “key.”
Moreover, the escalating count of non-crypto celebrities, such as leading YouTubers and OnlyFans personalities, diving into the Friend.tech platform could be another significant factor behind its revitalized activity. As emphasized by PancakesBrah, the anonymous figure spearheading growth and business outreach for Friend.tech, the platform is not “just for crypto enthusiasts.”
In tandem with these observations, Friend.tech has been proactive in rolling out a slew of updates geared towards refining user interface and augmenting features. Once hindered by glitches and technical snags, the platform now boasts novel functionalities like photo uploading, options for credit card purchases, and dedicated segments to peruse varied forms of activity.
Having debuted on Coinbase’s layer-2 Base on August 11, Friend.tech was off to a flying start, raking in an impressive $5.9 million in fees within ten days. However, the momentum seemed to wane shortly after. The platform experienced a dramatic 87% dip in daily fees and a 90% slump in transaction volume the following week, prompting hasty conclusions about its viability.