Friend.tech’s Decline in Metrics
Friend.tech, the decentralized social network that played a significant role in the success of Coinbase’s layer 2 network, Base, has experienced a noticeable decline in various metrics since September.
According to data from Dune Analytics, the number of new users on Friend.tech dropped to 682 as of November 2nd, compared to its peak of over 70,037 on October 15th.
A Buzzing Start Followed by Waning Activity
When Friend.tech launched its beta version on Base in August, it quickly gained attention by outperforming Uniswap and the Bitcoin network. However, activity on the platform has since decreased.
The trading volume on Friend.tech has plummeted to $505.49k from its all-time high of $20.4 million just three weeks ago. Additionally, Dune Analytics data reveals that the number of traders on the platform decreased from 73.79k to less than 4k in just two weeks.
Decreased Fees and TVL
The fees generated by Friend.tech have also significantly dropped to $50k on November 2nd, compared to its peak of $2 million. Furthermore, the proportion of Gas usage in the Base network has fallen to 6.5%.
In terms of Total Value Locked (TVL), Friend.tech has experienced a decline of approximately 25%, going from $51.68 million to $40.47 million over the past month.
Rising Competition and User Shift
Once considered a trailblazer in the SocialFi space, Friend.tech now faces tough competition from emerging alternatives. In November last year, notable users like NFT influencer Pranksy and user Vombatus, who owned the platform’s most valuable key, chose to sell their assets on Friend.tech and switch to NBC.
Hot Take: Friend.tech Struggles to Maintain Momentum
Despite its initial success and significant contribution to Coinbase’s Base network, Friend.tech has faced a decline in various metrics. The number of new users, trading volume, fees generated, Gas usage, and TVL have all experienced significant drops. This decline in performance can be attributed to the emergence of newer alternatives in the SocialFi space and the migration of influential users to other platforms. Friend.tech now faces the challenge of regaining momentum and re-establishing itself as a leading decentralized social network.
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