Friend.tech’s Total Value Locked (TVL) has undergone a substantial decline recently, registering its most significant single-day drop of 7.8% in early October, indicating a noteworthy downturn in performance.

Additionally, there has been a significant redemption of keys on Friend.tech, with reports of ongoing sim swap attacks casting a shadow over the network.

Massive Drop in Friend.tech TVL

A data and research analyst, Tom Wan, recently released an X thread exposing the massive drop in the new network’s TVL, as seen on Dune analytics. As per the tweet on Oct. 4, the network experienced its most significant single-day drop in TVL, recording a loss of about 2.3K Ethereum.

The TVL of @friendtech dropped 7.8% in a single day

What happened?

The new features in our @DuneAnalytics dashboard will show you what causes the drop

(0/6) pic.twitter.com/JizJZtsSPs

— Tom Wan (@tomwanhh) October 5, 2023

According to the data from DefiLlama stats, the Base-based platform experienced a decline in Total Value Locked (TVL) from 29.19K ETH to 27.14K ETH on Oct. 4. This was part of a series of TVL drops that started on Oct. 3, with a decrease of approximately 1.30K ETH. By early Oct. 6, the TVL had fallen to 26.48K ETH.

Of note, the most significant TVL drop occurred on Oct. 4, with a reported decrease of about 7.8%, according to Tom Wan. Despite the decline in TVL, idle capital remained steady at 10.34K ETH (approximately $17M) on Oct. 4, as the redeemed keys were fully withdrawn from the network.

Additional reports indicate that despite the decrease in TVL, the amount of dry powder did not drop, suggesting that users could potentially reenter the market anytime.

Key Redemptions Reach New H