Is Friend.tech a Viable and Sustainable Platform?

Is Friend.tech’s Growth Sustainable?

Friend.tech is a decentralized social network platform that allows creators to tokenize themselves. This means that creators have keys to themselves, which can be traded among users on the Friend.tech platform. These keys have various use cases, such as granting special access to chatrooms or content.

The platform has already gained a significant number of users, with over 300,000 onboarded within just two months. This shows healthy and sustainable growth, with about 6,000 new users and 9,000 recurring users daily.

Average Weekly Trading Retention

However, the average weekly trading retention has fallen from 22% to 5%. This could be due to the platform’s features not being optimized for user experience and content consumption. But this metric only focuses on the trading of keys and doesn’t address the sustainability of the platform as a whole.

Total Value Locked (TVL)

Friend.tech has set a new All-Time High (ATH) for its TVL at $50 million, surpassing many other DeFi projects in the crypto space. This is an impressive result for a platform that is only two months old.

Daily Revenue From Fees

The platform generates about $320,000 in fees daily from its users, which is comparable to top DeFi protocols. This demonstrates the success of Friend.tech in terms of revenue generation.

The Daily Revenue / TVL Ratio

Friend.tech’s high daily revenue / TVL ratio indicates that it is more efficient compared to many top DeFi projects. This is another positive sign for the platform’s sustainability, especially considering that most of the revenue comes from trading fees.

Future Concerns about Friend Tech

While Friend.tech has performed well so far, there are still challenges ahead. These include maintaining incentivization for creators, increasing the platform’s prominence in the SocialFi space, and driving user adoption. The current pricing model for creator keys may limit the platform’s reach if prices rise too fast.

Conclusion

Friend.tech’s launch has been a success, but its long-term sustainability is uncertain. Overcoming challenges will be crucial for its future success. Only time will tell if Friend.tech can navigate these obstacles and establish itself as a sustainable player in the crypto space.

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