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Demand for Friend.tech plummets to all-time lows – Why?

Press Releases Crypto News AMB-Crypto Demand for Friend.tech plummets to all-time lows - Why?

The past two months have seen a steady drop in user activity on Friend.tech.
Interestingly, the protocol’s TVL continues to surge.

After an extended period of hype, decentralized social network Friend.tech has begun to witness a decline in user activity, as revealed by on-chain data from Dune Analytics.

Friend.tech hype fades

On the 6th of December, Friend.tech recorded a historic low in user activity as its single-day transaction count totaled 6,757, representing an all-time low in daily transactions. Simultaneously, the number of active buyers reached a record low of 1022 on the same day.

The demand for Friend.tech plateaued on 13th September after it clinched an all-time high daily transactions count of 539,810. Since then, network activity on the social network has declined.

Source: Dune Analytics

Users can create a group chat on the protocol, and others can mint the “keys” of that creator to join the chat. They are allowed to participate in the chat as long as they own a single key from the creator.

Per Dune Analytics data, the daily count of keys minted on Friend.tech also plummeted to an all-time low of 75 on 6th December. For the first time in the protocol’s four-month history, the total number of keys minted in a single day was less than 100.

When the Friend.tech frenzy was at its highest, single-day fees generated by the protocol climbed to an all-time high of $2 million on 14th September.

However, as the hype around the decentralized social network dwindled, the low user activity on the protocol resulted in low fees.

As of 6th December, transaction fees totaled $22,000, bringing Friend.tech’s cumulative fees to $70 million.

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Author: Abiodun Oladokun

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