Friend.tech, a decentralized social network, has seen a strong resurgence despite previous claims of its demise. The platform has regained user interest, with its total value locked (TVL) exceeding $20 million a few days ago.
Thanks to this renewed momentum, Friend.tech has experienced a surge in trading volume and platform fees to new heights.
Friend.tech Continues to Rise with Record Trading Volume
The decentralized application (dApp) Friend.tech has seen significant activity in recent days. This is evident in the platform’s daily active users, which reached nearly 16,000 on Wednesday, September 13.
As a result of this upward trend, Friend.tech also achieved its highest trading volume of $18.51 million on Wednesday, according to data from Dune Analytics. The platform recorded $1.9 million in capture fees, marking another all-time high on the same day.
The Dune data dashboard revealed that fees on Friend.tech accounted for over 35% of the gas cost on the Base blockchain on September 13.
In addition, the number of traders on the decentralized application increased significantly, with unique buyers surpassing 155,000. Meanwhile, the number of unique sellers exceeded 75,000 on Wednesday.
As of now, Friend.tech has a total value locked of nearly $34 million, as reported by DefiLlama. This represents an increase of almost 30% in the past 24 hours.
Possible Reasons for Friend.tech’s Recovery
Friend.tech launched on Coinbase’s Ethereum layer-2 network, Base, in August. The dApp allows users to trade “keys” of X (formerly Twitter) accounts and engage with social media personalities in a closed group chat format.
After its launch, Friend.tech gained popularity quickly. However, activity on the platform sharply declined before the end of August, with its trading volume dropping by 94% at one point.
Fortunately, Friend.tech seems to have recovered from this decline. While there is no clear catalyst for the recent surge in activity on the platform, several theories have emerged from the crypto community.
A recent report from TokenTerminal proposed that multiple factors may contribute to Friend.tech’s growth. The report highlighted that Friend.tech has no direct competitor, with X (a Web2 application) being its closest rival.
The report also pointed out the strategic timing of Friend.tech’s launch, coinciding with the public mainnet launch of Base. TokenTerminal suggested that this timing was intended to maximize activity on both the dApp and the blockchain.
Another possible reason for the recent resurgence was explained by popular crypto trader Hsaka. According to the trader’s post on X, the platform’s total value locked has soared as users discovered they could receive rewards for depositing crypto assets.
The cryptocurrency total market cap on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Fortune, chart from TradingView