Friend.tech’s Resurgence
The decentralized social media platform Friend.tech experienced a decline in popularity after a surge during a slow summer for digital asset traders. This raised concerns about the app’s sustainability and whether it was just another crypto trend. However, recent data shows a different story.
Friend.tech is a decentralized application built on the Ethereum protocol, Base. It allows users to purchase shares of X (formerly Twitter) accounts and interact in closed group chats. The platform saw an influx of new users and attracted influential celebrities in a short period.
Despite the slump in metrics like activity and volume, Friend.tech has observed a resurgence in trading volume and fees. The number of daily active users has also increased, with around 16k users recorded on September 13th.
In addition to the trading volume and fee recovery, there has been an increase in buyers and sellers on the platform. The number of unique buyers exceeded 155,000, while sellers surpassed 75,000 on September 13th.
What’s Driving Friend.tech’s Growth?
A report by Token Terminal highlights several factors contributing to Friend.tech’s growth. One key factor is that it currently has no direct competitors in its niche. Unlike other social dApps that operate as open social networks, Friend.tech focuses on monetizing “gated” content.
The report also suggests that Friend.tech strategically timed its launch to coincide with that of Base, aiming to optimize activity on both platforms. However, there are still risks related to server capacity limitations that have caused user access disruptions in the past.
Hot Take: Friend.tech Rebounds with Increased Trading Volume
Despite initial concerns about its sustainability, Friend.tech has experienced a resurgence in trading volume and user activity. The decentralized social media platform, built on the Ethereum protocol Base, allows users to purchase shares of X accounts and interact in closed group chats.
Recent data shows a significant increase in trading volume, fees generated, and the number of daily active users. This growth is driven by Friend.tech’s unique position in the market, with no direct competitors in its niche. However, challenges related to server capacity limitations remain a potential risk.
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