The Decrease in Total Value Locked for Friend.tech
Friend.tech, a decentralized social finance (SocialFi) application, recently experienced a 19% drop in total value locked (TVL) within a few days, indicating a slowdown in user adoption. The platform, which was launched in August, is developed on Base, an Ethereum (ETH) scaling solution backed by Coinbase.
Friend.tech allows users to monetize themselves by selling shares or “keys” to their followers. According to data from blockchain platform Dune Analytics, the total value locked on Friend.tech declined from $42.26 million on November 17th to $34.03 million on November 20th.
TVL indicates the capital deposited in a protocol’s smart contracts and is used to measure the health of a crypto ecosystem. Despite hitting an all-time high of $51.68 million on October 2nd, Friend.tech’s TVL has declined since then. The platform’s user growth has stalled after attracting thousands of new users daily for weeks, recording just 140 new users on November 20th following the TVL decline.
The decrease in TVL and user growth coincides with Friend.tech’s efforts to address the issue of bots on the platform. The company announced the removal of approximately 600,000 identified bot accounts just a week ago.
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Friend.tech Faces Slowdown in User Adoption as Total Value Locked Falls
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