- Friend Tech experienced a record low in daily transactions and active buyers on December 6, with a protocol fee of only 11.5 ETH.
- Despite recent challenges, the platform’s Total Value Locked (TVL) rebounded by 16.4% to 17.21k ETH since November 22.
- In October, Friend Tech’s innovative use of tokenized keys led to it surpassing Ethereum in daily earnings.
Friend Tech, a social application built on the Base Layer 2 network, has recently experienced a significant fluctuation in its performance metrics. On December 6, the platform witnessed a record low in its single-day transaction count, falling below 7,000, coupled with a notable decrease in active buyers. The day’s protocol fee was recorded at a mere 11.5 ETH. Despite these lows, Friend Tech’s Total Value Locked (TVL) has shown resilience, rebounding with a 16.4% increase to 17.21k ETH since November 22.
This downturn contrasts sharply with the platform’s earlier achievements. In October, Friend Tech reported substantial revenue growth, amassing about $10,684 in ETH in under two months. Since its inception on August 10, the platform has demonstrated a consistent upward trajectory in revenue generation. By September 9, just a month after commencing operations, Friend Tech had already surpassed the $5 million revenue mark. This growth accelerated in the following month, with cumulative revenue exceeding $18.4 million.
A notable aspect of Friend Tech’s ecosystem is the significant revenue generated by sniper bots. Over 459 bots have collectively earned approximately $5.9 million, representing about 34% of the total creator revenue. These bots have engaged in over 33.44K transactions, with individual bots reporting substantial profits. For instance, a bot using contract 0xff231 reported a trading profit of 345.76 ETH, equivalent to $596.4K, from 232 transactions.
Back in October, Friend.tech outperformed Ethereum in daily earnings, generating $1 million compared to Ethereum’s $710,000. This achievement was attributed to the platform’s innovative use of tokenized keys linked to users’ X accounts, enhancing user engagement. Friend Tech’s success has attracted significant investment, including from venture firm Paradigm.
Despite these impressive figures, Friend Tech faced challenges with the onset of the last quarter of 2023. On November 1st, the platform recorded its lowest total volume and fee captures since early September, at $881k each. The number of traders also dipped to 6.03k, and the platform’s gas usage on the base network fell to 3.8%. The daily average of new users over the past three days was around 560, indicating a decline in active user engagement. The TVL also decreased by approximately 25.8% from its peak in early October.
