Friend.tech’s sudden rise and current issues: Diving into its impact on Base
- Frind.tech’s key metrics have recently suffered close to a 90% decline from their peaks.
- Base, however, maintained regular activities despite the decline.
Friend.tech garnered significant attention from the cryptocurrency community due to its remarkable adoption rate. Despite some surrounding controversies, its growth persisted. Nevertheless, this growth has recently encountered an obstacle.
Could this obstacle potentially influence the transactions on Base as well?
Decline sets in on Friend.tech
Friend.tech initially gained rapid traction upon its launch, a relatively new application on the Base network, resulting in a favorable impact on the L2 network. However, according to a recent post by Wu Blockchain, a notable decline has been observed in the metrics related to the application. This included decreased transaction count, trading volume, revenue, and MEV Bot activity.
A more detailed examination of Friend.tech’s performance on Dune Analytics provided insight into the ongoing decline experienced by the application. Based on Dune Analytics data, on 21 August, the platform generated substantial fees, exceeding $1.6 million, and amassed revenue of over $800,000. However, as of this writing, these figures had plummeted to $38,219 in fees and $19,109 in revenue.
The peak in trading volume, recorded at over $16.8 million on 21 August, had significantly receded to approximately $382,000 as of this writing. Furthermore, the daily transaction count had dwindled from its apex of over 135,000 to a current level of around 4,700.
Notably, the decline also extended to MEV bot transactions, which had dwindled from a peak of 10% to a mere 0.7% in the same period.
Has the Friend.tech decline impacted Base?
Reviewing the volume and revenue metrics of Base on DefiLlama, it became evident that Friend.tech’s impact had been relatively modest. The volume metric experienced a minor upsurge on 21 August, coinciding with the rise in Friend.tech’s metrics.
However, the volume remained relatively steady. As of this writing, the most recent recorded volume was over $15 million, with a revenue figure of approximately $98,000.
Conversely, the Total Value Locked (TVL) exhibited a slight increment. The TVL was over $185 million, marking an increase from the $183 million observed on 27 August. While the current downturn in friend.tech’s metrics might seem substantial, but a gradual decline had been occurring even before this point.
The underlying reasons for the current decline remain uncertain. It could be attributed to either the fading of initial hype or a temporary setback.