Friend.tech Generates More Revenue Than Bitcoin on Ethereum’s Layer-2 Scaling Solution
Friend.tech, a decentralized social media platform built on Base, the Ethereum layer-2 scaling solution supported by Coinbase, has generated more fees and revenue than Bitcoin. According to Token Terminal data, Friend.tech generated $28.6 million in fees, surpassing Bitcoin’s $26.8 million. This is significant considering that Friend.tech operates on a layer-2 platform, which should result in lower transaction fees. The high fee volume indicates that Friend.tech has processed tens of millions of unique transactions.
Friend.tech Activity Rising
Base, with a total value locked (TVL) of $558 million according to L2Beat, has a substantial amount of its TVL held in Ethereum. Friend.tech has processed approximately 10 million transactions since its launch, as shown by data from Dune Analytics. The ability of Friend.tech and Bitcoin to generate high fees suggests active usage and demand for the platform.
The Importance of Fees for Network Activity
The amount of fees generated by a platform can indicate trading volumes, on-chain activity, and user growth rate. Increasing volumes often correspond to more daily active addresses (DAA) that engage in asset transfers and smart contract deployment. These activities directly contribute to the accumulation of fees on layer-1 or layer-2 platforms.
Ethereum and its protocols like Uniswap and Lido Finance generate substantial fees for network validators. In the last 30 days, Ethereum alone produced $91.1 million from gas fees. Tron generated $87.1 million from fees, while Lido Finance and Uniswap contributed $47.5 million and $24.2 million respectively.
Friend.tech Users Face SIM-Swap Attacks
Despite Friend.tech’s growing revenue, there have been reports of compromised user accounts. Several users fell victim to SIM-swap attacks, resulting in the loss of approximately 109 ETH worth around $178,000. These attacks involve attackers gaining control of victims’ mobile numbers and intercepting two-factor authentication codes to drain their accounts. Multiple incidents occurred in early October, with users like musician Daren Broxmeyer also losing coins through the same attack vector.
Hot Take: Friend.tech’s Revenue Success Highlights Growing Demand for Decentralized Social Media
The significant revenue generated by Friend.tech demonstrates the increasing demand for decentralized social media platforms. Despite facing security challenges such as SIM-swap attacks, Friend.tech has managed to attract a large number of users who are actively engaging with its services. This success not only showcases the potential profitability of social media platforms built on layer-2 scaling solutions like Base but also highlights the growing interest in alternative, decentralized platforms that prioritize user privacy and control over their data.
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