Friend.tech, once presumed a dead platform, has made a tremendous comeback, reaching a new all-time high in terms of Total Value Locked (TVL).
Friend.tech Unexpected Resurrection
Friend.tech, a decentralized social network, has been making waves in the crypto space. The social media platform has recorded its highest level of total value locked (TVL), surging to more than $20 million in the last few days, according to data from DeFiLlama.
Reports also reveal Friend.tech’s daily trading volume surged by $12.3 million in just a day, surpassing OpenSea, the world’s largest NFT marketplace, with over $3 million in daily trading volume on September 9.
This resurgence comes mere weeks after the crypto community had written off the crypto project as “dead” due to sharp declines in user activities and TVL.
A pseudonymous crypto account, Herro commented on Friend.tech’s sudden resurgence, convinced that Friend.tech would recover and grow further. However, he said, the extent of the platform’s growth would depend on its team’s management and efforts.
He explained that the platform may undergo certain improvements and changes like reducing fees and facilitating the inclusion of non-crypto users.
“I believe FT will stick around up until a token is launched in ~5 mo. Prior to, and after that, its future will depend on the team. I believe they’ll reduce fees, increase creator revenue earned & onboard non-crypto natives in order to succeed,” Herro told CoinTelegraph.
Total market cap chart struggles to stay above $1 trillion | Source: Crypto Total Market Cap on Tradingview.com
Possible Reasons Behind Friend.tech’s Surge
Friend.tech first launched in August, becoming one of the top decentralized applications (dApps). It started out as a fairly popular platform with great growth prospects and the platform was aiming to spearhead socialization in the decentralized space.
However, in the same month, Friend.tech began declining unexpectedly. Daily trading volume plummeted 94% from its peak, declining from a staggering $16.9 million to just $953,000.
Amid the trading volume decline, user activities also dropped significantly. The social network previously recorded 350,000 daily traders but took a nose dive to a mere 6,000. Friend.tech also experienced unfortunate losses after MEV bots swiped over $2 million worth of keys from the decentralized platform. However, the platform seems to be back from the dead.
There is no clear justification for Friend.tech’s sudden surge as crypto enthusiasts and investors are currently pondering what sparked this former uneventful decentralized social network to a new all-time high.
A possible explanation for the resurgence was explained by Hsaka, a popular crypto trader. Hsaka suggested that Friend.tech’s TVL doubled when users realized they could receive rewards or interests when they deposit crypto assets into the DApp.
Friend tech TVL 2x since people realized these were just yield farms rebranded.
— Hsaka (@HsakaTrades) September 9, 2023
Another reason behind Friend.tech’s increase could be the growing number of non-crypto users on the decentralized social network.
Featured image from Binance, chart from Tradingview.com