As per the latest figures from DeFiLlama, social finance protocol Tomo and New Bitcoin City have seen a significant spike in their total value locked (TVL). Both of these have crossed $1 million in their smart contracts. The surge indicates an increased demand for social finance platforms in the crypto space.
Tomo and New Bitcoin City are competitors of Friend.Tech. It was the first platform that was launched by Base to explore the potential of the social finance sector. The platform gained immense popularity among consumers in a short period of time. It has introduced the idea of gated communities while selling the keys to access group chats. The keys get expensive as users buy them.
Tomo and New Bitcoin City’s Rise Can be a Threat to Friend.Tech?
The emergence of Tomo and New Bitcoin City shows that social finance platforms are here to stay. Tomo allows people to bet on the value of the key owned by people. It also allows people to text each other, a feature not offered by Friend.Tech.
On the other hand, New Bitcoin City allows people of other platforms to use their keys on its own protocol. It has also added some customization features, as users can set the fee for the purchase of group accessing keys and they can also set the specific number of keys required by the users. The platform enables users to buy each other’s keys for 30 days.
The innovation brought forward by these two platforms have ensured that they have become the only two social finance protocols other than Friend.Tech to have more than $1 million in TVL. Nonetheless, Friend.Tech remains the undisputed king with a TVL of over $43.7 million.
However, the commendable rise of Tomo and New Bitcoin City has seen both platforms reach $1.52 million and $1.1 million in TVL, respectively. In the last day, Tomo has marked an increase of over 54% in its TVL, while New Bitcoin City has noted a change of over 15%. Previously, Avalanche’s StarArena had more than $1 million in TVL but it was hacked.
It is still early days for social finance platforms but the increasing user base is surely a positive sign for the sector that can look for more innovation and growth in the near future. Plus, healthy competition between the top 3 of this sector will also encourage more user-friendly strategies.