Friend.tech resurrects: Outpaces Ethereum NFTs in trading volume
Decentralized social media app Friend.tech has seen a dramatic resurgence in popularity, as evidenced by a notable spike in its transaction volumes. Surpassing the trading volume of Non-Fungible Tokens (NFTs) on the Ethereum (ETH) network, Friend.tech has achieved this feat for the third time.
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Left Ethereum NFTs in the dust
Friend.tech was deemed obsolete after witnessing a sharp drop in user engagement. However, data from Galaxy Research reveals a stark contrast today: the platform’s daily trading volume now exceeds that of the largest platform for NFTs, Ethereum.
On September 9th, the platform boasted a trading volume of $12.3 million. The impressive figures eclipsed Ethereum-based NFTs, which settled at $9.2 million.
This marks the third instance where Friend.tech has outstripped the Ethereum NFT market. To contextualize, the protocol first surpassed NFTs on August 20 with a volume of $14.1 million against NFTs’ $12.4 million. The following day, it again dominated with $16.9 million, while NFTs trailed at $11.2 million.
What is so special about Friend.tech?
Friend.tech is a revolutionary social decentralized platform (DeSo) that enables users to trade social media accounts much like stocks. Upon purchasing shares or “keys” of active accounts, investors gain exclusive perks such as Direct Messaging and access to private chat rooms. As an account’s popularity rises, its share price also soars, paving the way for early investors to reap lucrative returns.
Since its launch on the Base Network on August 10, 2023, the project has quickly garnered a vast user base. A mere ten days post-launch, the app generated a staggering $25 million in fees, with over 100,000 addresses added.
Obituary notices proven wrong
However, by August 28, daily transactions witnessed a plummet of 95%. This sharp decline led to widespread speculation regarding the platform’s sustainability. Lisandro Rodriguez, Coinbase payments risk manager, opined:
“Friend tech is dead because of greed and poor execution. After the initial influencer pump, volume has fallen off a cliff.”
Contrary to Rodriguez’s views, Friend.tech has managed to rebound. Data from Dune Analytics indicates that the protocol has registered over 2.3 million transactions, flaunting a user base of 155,000 unique traders and a whopping 153,000 traded shares.
Upcoming token drop
Recent controversies have plagued the protocol. Last month, it became the target of a phishing scam. Additionally, the team tried to penalize users for using forked versions of the platform (clones) but later backtracked on the decision.
However, as the platform’s all-time volume surpasses ETH 123,000, anticipations are high. Friend.tech has plans to unveil a token drop soon, which might further catapult its trading volumes.
