The friend.tech boom has subsided: the daily transaction volume has dropped by 90%, and the Base network has returned to rationality

Original author: BeInCrypto

Original compilation: Felix, PANews

As predicted by several cryptocurrency industry analysts, social protocol Friend.Tech’s decline has been as rapid as its rise. After dominating crypto media headlines for a week, Friend.Tech network activity has dropped significantly.

Data source (as of August 28): Dune

The number of daily traders at Friend.Tech dropped by 77%

Although the idea of ​​a “SocialFi” or “DeSo” platform allowing users to buy and sell certain X (formerly Twitter) accounts and social media shares is novel. However, as various indicators of Friend.Tech dropped, it seemed that the agreement was failing. Buyers and sellers on the Friend.Tech platform left one after another, and the sales of shares dropped sharply.

According to data from Dune Analytics, Friend.Techs daily trading volume has fallen 90.4% since peaking at $16.9 million on August 21, and has dropped to just $1.61 million on August 27. Additionally, the number of daily traders dropped from a peak of 35,000 to just 7,850 on August 27, a decrease of approximately 77.57%.

As of August 28

Friend.Techs network expenses also dropped from $1.7 million on August 21 to $160,000 on August 27.

As of August 28

In fact, all of the platform’s metrics, from trades to MEV bots to new traders, have dropped by more than 80% since last week.

As of August 28

Additionally, industry research firm Messari reported shortcomings with Friend.Tech, including high transaction fees, slow loading times and a steep pricing curve.

Impact on Base

Bots also infiltrated the Base network, causing a surge in trading volume and front-running trades. The platform has been a huge boost for Base, with the Base network seeing a surge in TVL and activity last week. According to L2 beat data, Base network activity briefly spiked on August 21 and surpassed the Ethereum network.

However, Friend.Techs downward trend led to a sharp decline in Base transactions and activity, with daily active users falling to 89,202 on August 27.

Data source: Dune

Ryan Wyatt, former president of Polygon Labs, said last week that in its current form, it is basically an unexpected Ponzi scheme, and Friend.Tech does not have any product features to create user stickiness.

Additionally, it appears that fake accounts are being created in an effort to revive Friend.Tech. Crypto KOL icebergy said: “It is sad to see developers attract new people to join the field by creating speculation.”

Most of the new people attracted by Friend.tech come from the adult social media platform OnlyFans (Note: Most of the creators of OnlyFans are amateur and professional adult models). According to Decrypt, as Friend.tech launches new photo features, more and more content creators from OnlyFans are flocking to encryption app Friend.tech. Among the most popular accounts on Friend.tech, JenfoxxUwU, ranked 13th, sells friend.tech for 0.87 ETH, while the monthly subscription fee for JenfoxxUwU on OnlyFans is only $3.75.

In addition, according to OnlyFans financial report, OnlyFans has been investing in Ethereum (Note: According to OnlyFans financial report, OnlyFans has invested part of its funds in ETH and purchased $19.889 million in ETH). As the OnlyFans platform continues to deepen its involvement in the crypto field, it seems that more OnlyFans creators may enter the crypto field in the future, increasing the speculative nature of Friend.Tech.