- Friend.tech activity is dropping to new lows.
- Both the transaction fee and volume dropped by more than 90%.
Every now and then, the crypto industry sees that one project that claims to have the solution to one problem. In some cases, some of them don’t even claim to have a solution. Apparently, they just follow the hype around them and break into the crypto scene. The same happened to Friend.tech. But now, Friend.tech activity saw a massive reduction in activity.
Friend.tech Activity Drop, But the Project Had a Wild Ride
- Before Friend.tech activity dropped, this project had a wild run in different metrics, unseating many popular blockchains. It is more like a decentralized social media platform where users can trade their profiles as shares or keys. So, this trading of profiles spurred Friend.tech activity to new levels.
- At one point, it was sitting next to the Ethereum network regarding transaction fee payments. Furthermore, it had more revenue than other blockchains like Bitcoin, Uniswap, and PancakeSwap. Friend.tech accounts for 80,000 users and facilitated over 1 million transactions worth $50 million as of 21st August. But all these are all gone, with activity going down the drain. What happened?
Friend.tech Activity Hits New Lows
- For a project that had over $1 million in fees in 24 hours, Friend.tech looks unrecognizable. Apparently, the daily transaction fees are now within the $200,000 range. According to DefiLlama, their transaction fees fell to approximately $215,000 on August 26. Furthermore, at the time of writing, their transaction fees are less than $225,000.
- According to Dune Analytics data, Friend.tech activity is hitting new lows. The number of transactions happening on the platform fell by more than 90%. Apparently, it went from 525,000 on August 21 to just over 51,000 on August 27.
- Inflows on the network aren’t looking good either. Apparently, their inflows dropped from $16.8 million on Aug. 21 to about $1.6 million on Aug. 27. That’s also more than a 90% decrease from the peak days. But it seems the drop in Friend.tech activity will have more effect on its parent network, Base.
Effects of the Drop on Coinbase’s Base
- Coinbase’s Base will receive its share of effects from the drop in Friend.tech activity. Apparently, during the peak days of this decentralized social media platform, there was an increase in activity on the Base Network.
- This is not the case now, as the drop in activity also directly impacts the Base Network. Not only is there a drop in activity, but the number of scams is increasing on Friend.tech. Apparently, this brings a bad reputation to Base, which is just finding its stand in the crypto industry.
Conclusion
According to data from different sources, Friend.tech activity drastically reduced. Many metrics, such as transaction volumes and revenue, decreased drastically while reaching new lows. Furthermore, this is having a compound effect on the Base Network, which also suffers from a drop in activity.
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Featured image from Tronweekly
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