The decentralized social network Friend.tech, has been declared “dead” by experts in less than a month after its launch due to a catastrophic drop in key metrics such as activity, inflows, fees, and volume.
On August 11, Friend.tech launched its beta version on Coinbase’s layer-2 Base and a week later its fees crossed over $1 million in 24 hours, beating Uniswap and the Bitcoin network.
Friend.tech allows buying and selling “keys” that help the buyer to send private messages to the seller, with a 5% cut, which the platform takes.
According to DefiLlama data, Daily fees were up at about $1.7 million on August 21 but got a dramatic decrease of 87%, which in value is around $215,000.
Transactions on Friend.tech is also lowering day by day. It went down over 90% from around 525,000 on August 21 with just around 51,000 transactions happening on August 27.
Friend.tech was ranked second to Ethereum in terms of fee generation and revenue, but is now ranked tenth, having earned $215,552 in the previous 24 hours, as per Dune Analytics data.
Friend.tech, at the time of its launch, was the highest revenue-generating entity in decentralized finance (DeFi) and had gained almost 100,000 users in a short time.
Some well-known personalities in sports, business, and social media like Grayson Allen, Garry Tan, Cobie, and Hsaka Traders were some of the early creators on the platform.
The plunge in the activities clearly shows the depleting interest of the users from the Friend.tech project due to greed and poor execution. This is high time for its developers to focus more on sustainable development in the evolving Web 3.0 space.
