Introduction: The Fading Hype Around Friend.Tech
Just as quickly as it caught fire, the buzz around Friend.Tech, the social media tokenization dApp, has fizzled out. Once a hot topic in the crypto world, the platform’s network activity has plummeted, leaving many to question its sustainability.
The Numbers Don’t Lie: A Drastic Drop in Activity
According to Dune Analytics, Friend.Tech’s daily trading volume has nosedived by a staggering 94%, from a peak of $16.9 million on August 21 to a mere $953,000 by August 27. That’s not all. The number of daily traders has also taken a hit, dropping 83% from 35,000 to just 6,000 within the same timeframe. Furthermore, network fees have slumped from $1.7 million to a paltry $95,000.
The Ripple Effect: Impact on Base Network
This downturn has had a domino effect on the Coinbase layer-2 network, Base. Last week, Base was riding high on a surge in Total Value Locked (TVL) and activity, thanks to Friend.Tech. Now, it’s processing fewer than five transactions per second, a significant drop that has many investors worried.
User Concerns: High Fees and Slow Load Times
Industry research firm Messari has reported multiple user complaints about Friend.Tech. High trading fees, slow load times, and steep pricing curves are among the issues that have contributed to the platform’s decline. Additionally, bots have infiltrated the network, causing spikes in transactions and front-running them.
The Verdict: An Unintended Ponzi Scheme?
Ryan Wyatt, former president of Polygon Labs, summed it up last week, stating that Friend.Tech essentially operates like an “unintended Ponzi scheme” due to its lack of product feature depth. This lack of “stickiness” or retention features has led to a rapid decline in user engagement.
Spurious Accounts and Speculative Games
In a last-ditch effort to revive the platform, developers are reportedly creating spurious accounts. “It’s sad to see devs resort to creating speculative games to attract new users,” said developer ‘icebergy.’ This raises ethical questions about the platform’s long-term viability.
The OnlyFans Connection: A Glimmer of Hope?
Interestingly, adult social media platform OnlyFans has been investing in Ethereum. Could this be a sign that more OnlyFans creators will venture into the crypto space, potentially giving Friend.Tech a much-needed boost? While it’s too early to tell, the connection is worth keeping an eye on.
Conclusion: A Cautionary Tale
Friend.Tech serves as a cautionary tale for the volatile nature of crypto frenzies. As quickly as they rise, they can fall, leaving investors and traders to pick up the pieces. Whether Friend.Tech can recover remains to be seen, but for now, it
