Friend.tech Transfers Earned Fees to Coinbase
An on-chain analyst at 21.co, Tom Wan, has reported a decline in Friend.tech’s daily activities related to key minting. Wan revealed that the decentralized social network transferred 7,800 ETH (equivalent to $16.6 million) to Coinbase.
Decline in Locked Assets
Friend.tech has experienced a significant decline in assets locked in the project. The total value of assets locked in Friend.tech’s smart contract has dropped by 50% from its peak of 30,000 ETH ($50 million) to 15,000 ETH ($33 million).
User Exodus and Declining Minting Activities
The decline in assets is accompanied by an exodus of users. Wan noted that daily activities related to key minting have seen minimal minting and a higher frequency of redemptions on most days.
Falling Usage on Coinbase’s Base Blockchain
Currently, only slightly over one percent of active users on Coinbase’s Base blockchain are using Friend.tech. This is in contrast to the peak period when nearly 55% of active addresses on Base were using the project.
Falling Fees and Overview of Friend.tech
The total fees generated on Friend.tech have been falling since September 2023. Launched in August 2023, Friend.tech is a Base-based social network application where users can monetize their content or expertise.
Hot Take: Friend.tech Faces Challenges Amidst Declining User Activity
The transfer of earned fees to Coinbase and the decline in locked assets highlight the challenges faced by Friend.tech. With decreasing user activity and falling fees, the future of the decentralized social network remains uncertain.
By
By
By