Posted:
- Friend.tech witnessed an increase in activity due to flipping, with a 29.3% increase in users and $1.23 million in fees per day.
- Coinbase faced regulatory challenges and shut down its services in India after September 25.
In recent days, Friend.tech has emerged as a prominent player in the crypto scene, capturing the attention of the community.
I’m freaking out about friend.tech
The platform’s activity has skyrocketed, mainly due to flipping, with Friend.Tech experiencing a notable 29.3% increase in users. Impressively, this influx resulted in generating $1.23 million in fees in a single day.
Flipping, for the uninitiated, refers to the practice of buying and selling assets quickly in the pursuit of quick profits. It is this intense flipping activity that has been the main driving force behind Friend.tech’s recent increase in activity.
The consequences of this high-intensity flipping are significant. While it has undoubtedly brought a flurry of activity to the protocol, it is a double-edged sword. Strikingly, the number of sellers is starting to equal the number of buyers, indicating that flippers are the main actors in driving the protocol’s activity.
This delicate balance between buyers and sellers has the potential to significantly impact the stability and performance of the protocol. If the number of sellers exceeds the number of buyers, it can create a volatile and unpredictable environment for users and investors.
FT saw a +29.3% increase in users and generated $1.23 million in fees in the last day.
Yet the number of buyers hardly exceeds the number of sellers.
The flipping game is still strong. pic.twitter.com/z3n6dM5kRe
— Emperor Osmo???? (@Flowslikeosmo) September 10, 2023
Base sees growth
Despite these concerns, Friend.tech’s popularity could yield significant benefits for the Base network.
Despite the stable number of active addresses on the Base network, activity within the protocol has increased noticeably. Over the past week, the number of transactions on the Base network has escalated from 350,000 to an impressive 507,900.
Source: Artemis
In the decentralized finance (DeFi) space, the Base protocol saw a rise in Total Value Locked (TVL), indicating growing trust and participation.
However, it is worth noting that despite these positive developments, decentralized exchange (DEX) volumes within the Base protocol have declined, prompting consideration of its potential impact on the health of the protocol.
Source: Artemis
How is Coinbase doing?
Its parent company, Coinbase, will also benefit from this rise in popularity. Coinbase CEO Brian Armstrong has unveiled plans for a next-generation stablecoin called ‘Flatcoin’. Additionally, Coinbase’s hopes of donating to cryptocurrency-friendly presidential candidates in 2024 could get a boost if a new SEC chairman takes over.
However, Coinbase’s global reach is not without challenges. In India, the company has decided to discontinue its services. Get started 25th of September, Coinbase will suspend all trading services for Indian users and advise them to withdraw their funds. In addition, new registrations from India are no longer accepted at the fair.
The move comes as Coinbase faces increasing regulatory pressure in India, leading to the departure of several high-ranking executives. While Coinbase seeks opportunities on one front, it is retreating on another due to regulatory hurdles.