Friend.tech (TVL) Doubles To Reach Over $20 Million After Being Pronounced Dead
Friend.tech, a decentralized social media platform, has experienced a rapid resurgence, with its Total Locked Value (TVL) nearly doubling to nearly $20 million in just the past four days.
This revival comes after a brief period of stagnation and skepticism. Launched on Coinbase's Layer 2 Base on August 11, the platform faced criticism when key metrics such as activity, inflows, and volume declined significantly two weeks ago. User engagement had also dropped notably during this time.
In just 10 days post-launch, the platform achieved an impressive revenue of nearly $5.9 million in fees.
However, shortly after that, user engagement experienced a significant downturn. Daily fees plummeted by nearly 87%, and transaction volumes substantially declined by 90% over the following week.
On August 22, the total fees collected from Friend.tech users experienced a sharp decline from over $1.7 million on August 21 to about $740,000, according to DeFi Llama.
This sharp drop led the crypto community to question the protocol's viability, with some even proclaiming it "dead."
Also according to Lisandro Rodriguez, a payments risk manager at Coinbase, who took to X to assert that Friend.tech's downfall was a result of both human greed and an inadequate scaling strategy.
The presence of automated trading bots has been implicated in taking advantage of swift price fluctuations, potentially distorting the order of transactions.
“While I do think the idea of friends tech was cool, the greed and poor execution led to its demise,” Rodriguez added.
However, the situation has taken a huge turn as Friend.tech has reached a new peak over the past few days.
According to data from Dune Analytics, the platform had seen an inflow of almost $12.3 million in
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