• 09 October, 2024
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Friend.tech Faces Uphill Battle as Metrics Witness Sharp Decline

Friend.tech Faces Uphill Battle as Metrics Witness Sharp Decline

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.

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.

Source: DefiLlama

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.

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