Friend.tech, a decentralized social network, has witnessed a sharp resurgence barely two weeks after critics declared the platform dead. The platform is enjoying renewed interest from users total value locked (TVL) of more than $20 million a few days ago.
Thanks to this growing momentum, Friend.tech has seen its trading volume and platform fees rise to new peaks.
Friend.tech continues its revival with another trading volume spike
Decentralized application (dApp) Friend.tech has been witnessing significant activity in the past few days. This is reflected in the number of daily active users of the social media platform, which grew to almost 16,000 on Wednesday, September 13.
Reflecting this uptrend, Friend.tech also reached its highest trading volume of $18.51 million on Wednesday, according to Dune Analytics data. The platform recorded $1.9 million in capture fees, which represented another record high on the same day.
The Dune data dashboard showed that fees on Friend.tech represented more than 35% of gas costs on the Base blockchain as of September 13.
Furthermore, the number of merchants on the decentralized application saw a significant increase, with the number of unique buyers exceeding 155,000. Meanwhile, the number of unique sellers rose above 75,000 on Wednesday.
At the time of writing, Friend.tech has a total value of almost $34 million, according to DefiLlama. This figure represents an increase of almost 30% in the last 24 hours.
Here are possible reasons for Friend.tech’s recovery
Friend.tech went live on Coinbase’s Ethereum layer-2 network, Base, in August. The decentralized application allows users to trade ‘keys’ to X accounts (formerly Twitter) and communicate with social media personalities in a closed group chat format.
After its launch, Friend.tech gained fame within a short time. However, activity on the platform dropped precipitously before the end of August trading volume fell by 94% at a given moment.
Fortunately, Friend.tech appears to have recovered from the decline. While there is no clear catalyst for the platform’s latest wave of activity, several theories have emerged from various corners of the crypto community.
Noteworthy: a recent one TokenTerminal Report suggested that several factors could be responsible for Friend.tech’s growth. Specifically, the blockchain analysis site highlighted that Friend.tech has no direct competitor, with X (a Web2 application) being its closest competitor.
Furthermore, the report pointed to the strategic launch of the social media platform, which coincided with the public launch of Base on the mainnet. TokenTerminal suggested that the timing of Friend.tech’s launch was to maximize activity on both the dApp and the blockchain.
Another possible reason for the latest revival was explained by popular crypto trader Hsaka. According to the message from the trader on Xthe platform’s overall value soared since users discovered they could receive rewards for depositing crypto assets.
The cryptocurrency total market cap on the daily timeframe | Source: TOTAL chart on TradingView
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