TL;DR
- Friend.tech, the decentralized social network, has experienced a dramatic decrease in its demand and daily activity.
- The number of new users completing at least one daily transaction has decreased by 95% in February compared to previous months.
- Transaction costs have dropped drastically, from $2 million in September to just $7900 in February, a loss of 99%.
In the world of the internet and blockchain technology, evolution is constant and fast. Every day, new platforms and social networks emerge. However, not all manage to stay at the top of success. A clear example of this is Friend.tech, a decentralized social network that has experienced a dramatic decrease in its demand and daily activity.
This decline in Friend.tech’s popularity has been evident in several key aspects. According to data from Dune Analytics, the number of new users completing at least one daily transaction on the platform has decreased dramatically in recent months. In February, this figure decreased by an astonishing 95% compared to previous months. At the beginning of the month, the platform registered 1831 new users, but by February 25, this number had dropped to just 55.
Furthermore, transaction costs on Friend.tech have also experienced a significant drop. While in September, a historic high of $2 million in transaction fees was reached in a single day, by February, this figure had dropped to just $7900. This 99% decrease in protocol fees reflects the lack of activity on the platform and the loss of interest from users.
Amid the Crisis, Friend.tech Experiences a Strong Capital Outflow
Another worrying indicator is the capital outflow in the form of key sales by users. Since September, there has been a notable increase in dollar outflows from Friend.tech. In February 2024 alone, users withdrew $11.23 million from the platform, surpassing January’s outflows by 65%.
Finally, the total value locked in Friend.tech has also suffered a significant decrease. After reaching a peak of $52 million in October, TVL has decreased by 46% due to low user activity on the platform. Currently, Friend.tech’s TVL stands at $28 million, representing a 22% decrease since the beginning of the year.
Despite a promising start and rapid initial growth, the platform has struggled to maintain user interest and faces significant challenges in regaining its position in the market. However, in such a dynamic environment, only time will tell if Friend.tech can reinvent itself and regain the trust of users or if it will become another victim of competition.
