In the ever-evolving landscape of cryptocurrency applications, Friend.tech has emerged as a notable player, captivating the crypto community’s attention with its rapid adoption. Despite weathering its fair share of controversies, the platform managed to sustain its growth trajectory. However, a recent obstacle has thrown a wrench into its once-flourishing journey.
Friend.tech, a rising star on the Base network, significantly impacted the Layer 2 (L2) network. The industry echoed the success of its launch. However, Wu Blockchain, a prominent voice in the crypto realm, recently pointed out a concerning trend Friend.tech’s metrics were declining. Transactions, trading volume, revenue, and MEV Bot activity decreased.
Recently, the transaction volume and fee income of friend tech have declined significantly. On August 27, the transaction volume of friend tech was US$883,000, a decrease of 94.8% compared to August 21; At 1.5k. MEV Bot activity has similarly weakened, with MEV Bots accounting…
— Wu Blockchain (@WuBlockchain) August 28, 2023
A more granular analysis of Friend.tech’s performance, courtesy of Dune Analytics, unraveled the extent of the application’s decline. On August 21st, the platform raked in a staggering $1.6 million in fees, with revenue surpassing $800,000. Fast forward to the present, and those numbers have dwindled to a mere $38,219 in fees and a paltry $19,109 in revenue.
The trading volume witnessed a sharp descent from a noteworthy $16.8 million to a comparatively modest $382,000, accompanied by a substantial drop in daily transactions, sliding from a commanding 135,000 to a modest 4,700. This downward shift also extended its influence to the domain of MEV bot transactions. Once commanding a substantial share of 10%, they now occupy a mere 0.7% fraction, all within the same time frame.
Analyzing Base’s volume and revenue metrics on DefiLlama revealed that the influence of Friend.tech had displayed a relatively restrained presence. A slight uptick in the volume metric on August 21st correlated with the ascent in Friend.tech’s statistics. The volume retained a state of overall constancy. The latest documented volume currently sits above $15 million, with a revenue tally of around $98,000.
In a contrary move, Total Value Locked (TVL) exhibited a modest increase, climbing from $183 million on August 27th to a current position of over $185 million. It’s worth noting that the recent downturn in Friend.tech’s fortunes might be grabbing the headlines. Still, a subtle downward trajectory had been underway even prior.
