Friend.tech TVL tops $20M weeks after being declared ‘dead’

While theres no evident reason the platform saw such a rise, numerous crypto market heavyweights shared some reasoning for its resurrection. Prominent trader Hsaka jested that TVL had actually doubled since users understood that Friend.tech chats were “just yield farms rebranded”– a comment that refers to the potential gain from the 5% fee made when users offer or buy someones “key.” Another potential reason behind the resurgence of activity on Friend.tech might have something to do with the growing number of non-crypto figures that have joined the platform in recent weeks, including a variety of popular YouTubers and OnlyFans creators.PancakesBrah, the pseudonymous account in charge of growth and company development at Friend.tech said this hammers house the point that the platform “isnt an app for just crypto bros.” I enjoy to see stuff like this bro, @sleepdiplomat just joined, which hammers home the point some people dont get, this isnt an app for simply crypto brothers, every vertical can find value on buddy tech, everybody bro pic.twitter.com/c7EpuGQtDt— Pancakesbrah (actually Based) (@Pancakesbrah) September 10, 2023

Decentralized social media platform friend.tech has actually seen a sudden surge in overall value locked (TVL), doubling to reach more than $20 million within the last four days. Just two weeks ago, critics stated the platform “dead” after activity on the app looked to be fizzling out. Overall worth locked and fees on Friend.tech given that Aug. 10. Source: DeFiLlamaHowever, activity on Friend.tech has experienced a substantial resurgence over the last couple of days, with the app witnessing $12.3 million in day-to-day trading volume– the third-highest ever– on Sept. 9, according to information from Dune Analytics. Trading volume and number of traders on Friend.tech considering that beginning. Source: Dune AnalyticsAs the pseudonymous account TylerDidIt mentioned, the Sept. 9 trading volume on Friend.tech eclipsed that of OpenSea, surpassing the NFT platform by more than $3 million on the day. FriendTech trading volume was $12.3 M yesterday.Total NFT trading volume on ETH was just $9.15 M. pic.twitter.com/CbqVYqP5PQ— TylerD ♂ (@Tyler_Did_It) September 10, 2023

Plagued by bugs and different technical mistakes, the app has included a series of new functions including the ability to upload images, credit-card-enabled purchase options and brand-new sections to see various types of activity.Related: Friend.tech rejects report that database of over 100K users was leakedFriend.tech introduced on Coinbases layer-2 Base on Aug. 11, and produced a staggering $5.9 million in charges by its 10th day. Shortly afterwards however, user activity stalled– daily fees plunged 87% and transaction volume fell 90% over the course of the next week, causing some to too soon state the platform “dead.

Other Questions People Ask

What factors contributed to Friend.tech's TVL topping $20M weeks after being declared ‘dead’?

Friend.tech's recent surge in total value locked (TVL) can be attributed to several factors, including the platform's rebranding of its chat features as yield farms. Prominent crypto traders have noted that this shift has attracted renewed interest, as users see potential for profit through the 5% fee on key transactions. Additionally, the influx of non-crypto figures, such as popular YouTubers and OnlyFans creators, has broadened the platform's appeal beyond just the crypto community.

How did trading volume on Friend.tech compare to other platforms after its TVL increase?

Following the rise in TVL, Friend.tech experienced a remarkable trading volume of $12.3 million on September 9, surpassing that of OpenSea by over $3 million. This significant trading activity indicates a resurgence in user engagement and interest in the platform, especially after a period of stagnation. The spike in trading volume highlights Friend.tech's potential to compete with established NFT platforms, showcasing its growing popularity.

What changes were made to Friend.tech that may have influenced its TVL growth?

Friend.tech implemented several new features aimed at enhancing user experience, which likely contributed to its TVL growth. These updates included the ability to upload images and options for credit-card-enabled purchases, making the platform more accessible. Additionally, new sections were introduced to help users track various types of activity, which may have encouraged increased participation and investment.

What does the resurgence of Friend.tech indicate about the future of decentralized social media?

The resurgence of Friend.tech suggests a promising future for decentralized social media platforms, particularly as they attract diverse user bases beyond traditional crypto enthusiasts. The involvement of influencers from various sectors indicates that these platforms can cater to a wider audience, potentially leading to sustained growth. As more non-crypto figures join and engage with Friend.tech, it may pave the way for similar platforms to thrive in the evolving digital landscape.

What lessons can be learned from Friend.tech's rapid recovery in TVL?

Friend.tech's rapid recovery in TVL serves as a reminder of the volatile nature of crypto markets and user engagement. It highlights the importance of adaptability and innovation in maintaining user interest, especially after periods of decline. Additionally, the platform's ability to attract a diverse range of users underscores the value of broadening appeal beyond niche markets, which can lead to unexpected growth opportunities.