The Decrease in Total Value Locked for Friend.tech
Friend.tech, a decentralized social finance (SocialFi) application, recently experienced a 19% fall 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) growing 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 financial resources deposited in a protocol’s smart contracts and is used to measure the health of a cryptocurrency ecological system. Regardless of hitting an record-breaking peak of $51.68 Million on October Second, Friend.tech’s TVL has declined ever since. 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 problem of bots on the platform. The company announced the removal of approximately 600,000 identified bot accounts just a week ago.
Friend.tech Faces Slowdown in User Adoption as Total Value Locked Falls
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