As predicted by several crypto industry analysts, the hype surrounding the social media dApp Friend.Tech has fizzled out just as quickly as it sparked up. Network activity has slumped as the latest crypto frenzy comes to an end.
The social media friend tokenization dApp, Friend.Tech has faded in terms of network activity following a week of it dominating crypto media headlines.
Friend.Tech Activity Fading
The “SocialFi” or “DeSo” platform, which allowed users to buy and sell shares of certain Twitter accounts and social media profiles, has fizzled out.
Buyers and sellers on the platform have departed, resulting in a slump in social media profile sales.
According to Dune Analytics, Friend.Tech daily trading volume has slumped 94% since its peak of $16.9 million on August 21. By August 27, that figure had fallen to just $953,000.
Moreover, the number of daily traders has declined 83% from 35,000 at its peak to just 6,000 on August 17.
Friend.Tech network fees have also slumped from $1.7 million on August 21 to just $95,000 on August 27.
In fact, all metrics for the platform, from transactions to MEV bots to new traders, have tanked more than 80% since last week.
Furthermore, industry research firm Messari reported user gripes ranging from high trading fees, slow load times, and steep pricing curves.
Affect on Base
Bots had also infiltrated the network, driving spikes in transactions and front-running them. The platform was a big boost for the Coinbase layer-2 network Base, which saw a surge in TVL and activity last week.
This downtrend on Friend.Tech has caused Base transactions and activity to drop off significantly, processing less than five transactions per second.
Ryan Wyatt, former president of Polygon Labs, called it last week, stating:
“In its current form, you’re basically looking at an unintended Ponzi with first in/first out because there isn’t any product feature depth to create stickiness or retention.”
Moreover, it appears that spurious accounts are being created in an effort to revive the platform.
“It’s so sad to see devs resort to creating speculative games to get new people to join the space,” said developer ‘icebergy.’
There could be a link with the adult social media platform OnlyFans, which has reportedly been investing in Ethereum.
“Seems like more OF girls will probably start getting actively involved in crypto, like we saw with Friend Tech,” was one observation.
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