- On September 13, daily transactions peaked at 539,810, 6,757 on December 6
- The platform generated $2M in fees on September 14, down to $22,000
- Total value locked was $36.7M in September, it is $38.7M now
User activity of decentralized social network Friend.tech has hit an all-time low, on-chain data from Dune Analytics shows.
On September 13, daily transactions peaked at 539,810. Network activity began to decline thereafter. On December 6, Friend.tech recorded a historic low with just 6,757 daily transactions and 1,022 active users, also a record low.
Fees peaked at $2M in September
On August 21, the platform generated $1.42 million in fees, coming to $4.2 million in total over the previous ten days. It launched on August 11. In that time frame, it attracted over 64,000 new users and its trading volume surpassed 24,000 ether.
Friend.tech’s fees continued to increase. The platform generated an all-time high of $2 million in fees on September 14. With fading hype, fees began to decline. On December 6, the platform generated transaction fees of just $22,000.
How does it function?
Friend.tech users can create a group chat, which other users can mint the creator’s keys to join. Ownership of a single key gives one the right to take part in the chat. Only 75 keys were minted on December 6 per Dune Analytics.
Revenue dropped by $11M in two months
The platform’s monthly revenue began to drop as network fees declined. It peaked at $13 million in September. By November, it had dropped to $2.42 million, representing a decline of 81% in just two months.
Friend.tech has generated revenue of $203,000 so far in December, data from DefiLlama showed.
TVL continues to rise
According to a Bankless Times report, Friend.tech’s TVL leapt from $2.37 million on August 18 to $36.71 million a month later, representing a 1,448% surge in the metric. Despite the low user activity, its TVL started rallying at the end of November, gaining 35% from November 22 to December 6. At the time of writing, it stood at $38.79 million.
