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7 months ago

This Once Popular Project is Now in a Slump: Coinbase Layer 2’s Major Catalyst in Ruins?

Chayanika Deka Nov 4, 2023 12:15
Crucial Friend.tech metrics are approaching historical lows.

Friend.tech has been a major catalyst behind Coinbase’s layer 2 network – Base’s – initial explosion. The decentralized social network, however, experienced a significant decline since September with several metrics hovering near all-time lows.

According to the latest data compiled by Dune Analytics, the number of new users on Friend.tech was recorded to be 682 as of November 2nd as compared to its peak of over 70,037 on October 15th.

  • Friend.tech created a buzz with its beta version launch on Base on August 11. Just a week later, it managed to surpass both the DEX giant Uniswap and the Bitcoin network in performance.
  • But activity on the platform has since waned. Currently, the trading volume was down to $505.49k from an ATH of $20.4 million around three weeks ago.
  • Dune Analytics data suggest that there were less than 4k traders on the platform at the time of writing, down from a whopping 73.79k just two weeks prior.
  • Fees generated by Friend-tech dropped to $50k on November 2nd, massively lower than its peak of $2 million.
  • Meanwhile, the proportion of Gas usage in the Base network fell to 6.5%.
  • Friend.tech’s TVL has also fallen by approximately 25% from $51.68 million to $40.47 million over the past month.
  • Once heralded as the trailblazer in the SocialFi space, Friend.tech has been facing stiff competition as newer alternative emerged.
  • Last November, a number of well-known users, such as NFT influencer Pranksy and the user Vombatus, who was once in possession of the platform’s most valuable key, chose to sell off their assets on Friend.tech and shift to NBC.
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Chayanika Deka

Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin

Tags: Coinbase