Friend.Tech is trying to make a striking comeback. An anticipated token launch linked to Friend.Tech version 2 (v2) has reignited interest.
Consequently, its total value locked (TVL) has surged to an impressive $40 million.
Friend.Tech V2 Launch After April 20
After a period of decline, over $8 million flowed into Friend.Tech last week. Consequently, its TVL skyrocketed by over 25% in the past seven days.
Furthermore, on April 8, the platform’s daily fees exceeded $750,000. This peak marks the highest since last October.
In another positive sign, 1,880 keys were minted on a single Monday. This figure is the highest daily record in the past six months.
Read more: What is Friend.Tech? A Deep Dive Into The Web3 Social Media App
Operating on the Base layer-2 network, Friend.Tech allows crypto personalities on X to issue “keys.” These keys grant access to exclusive group chats. For users, the appeal lies in the potential for gaining trading insights, token recommendations, or access to seed-funding deals.
Additionally, the spike in activity precedes the much-anticipated launch of Friend.Tech’s v2, which is expected after April 20. Developers aim to expand the platform’s reach beyond its current base on X.
This expansion is geared towards attracting a broader audience.
Back in December 2023, Friend.Tech initially teased the upcoming v2, sparking widespread interest. Over the recent weekend, excitement grew with the tease of a Friend.Tech token (FRIEND). This development has led users to speculate about potential rewards for their engagement with the platform.
“We are going to build a v2 and we are going to make the venture capitalists pay for it and we are going to give you all their FRIEND,” Friend.Tech wrote.”
What Caused Downfall?
Historically, Friend.Tech had its moment of glory. In September 2023, it achieved a trading volume of $12.3 million. This figure outstripped the total Ethereum (ETH) non-fungible token (NFT) volumes.
At that time, Friend.Tech was instrumental in driving traffic to the newly launched Coinbase’s Base Network.
However, the journey wasn’t without challenges. Following its peak, Friend.Tech saw a steep decline in user activity, transactions, and fees. The protocol’s fees plummeted over 98% from $1 million in September to just $16,000 in December 2023.
The number of new users also took a hit. From over 40,000 per day in mid-October, it dropped to just 60 by December 17, 2023.
Read more: How To Monetize Your Social Media Influence On Friend.tech
Security concerns exacerbated the downturn. The platform suffered from scammer and bot attacks. These issues likely deterred potential new users.
Early October saw a surge in phishing and SIM-swapping incidents. Scammers accessed personal information from Friend.Tech users on X (Twitter), leading to significant financial losses.
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