As fashions briefly blossom and wither in the volatile world of cryptocurrency, the latest to capture attention has been the social app Friend.tech. Generating a whirl of activities, this platform has witnessed an initial explosion followed by significant signs of receding interest.
Constructed on Base, the new layer-2 network of crypto exchange Coinbase, this app has accrued more than $4.2 million in Ether fees for creators in remarkably short periods. Previously holding the reins as the biggest crypto platform by revenue activity, Friend.tech allows big names from the X fraternity (formerly Twitter) to issue exclusive “keys” for entry into private chat groups.
However, as current data unfolds, the platform’s transaction activity seems to have slipped drastically, nosediving from its zenith of $16 million on August 21, to barely over $700,000 as of Thursday—a jaw-dropping 95% plunge in buy/sell volumes. Taking a sunnier perspective, Arkham, a trusted analytics firm, dismissed the idea of a mass exodus from Friend.tech as a touch overblown, highlighting that users continue to hold a substantial 3,870 ETH worth of keys—a dip of just 10% over the past week.
Despite the staggering decrease in transaction volume, the overall numbers speak of persistent activity with cumulative volumes seeing a steady growth from $80 million to $85 million so far this week. In the wake of launching live on August 10, Friend.tech experienced a seismic shift with volumes swelling from $2 million to $80 million in an eyeblink.
In terms of user activity, stats suggest the landscape is thriving. Total users have mushroomed nearly two-fold over the previous week with a minimum of 5,000 patrons indulging daily. The only areas of wane are seemingly focused among new users, lending weight to the notion that initial launch popularity has plateaued.
Figures from Friend.tech developers estimate the average active key holder at over 30 minutes per day on the app, with 75% returning the very next day and 50% maintaining usage after a week. Outside crypto circles, several eminent personalities have jumped into the fray, thereby extending its reach and adding to its initial viral appeal.
Indeed, the rapid growth of Friend.tech has outpaced even the notoriously swift standards of crypto evolution. The invite-only beta that saw the light on August 10, notched up roughly 4,400 ETH (about $8.1 million) in trading volume within 24 hours. As the dust settles on Friend.tech’s rapid ascent and subsequent ebb, this high profile jolt to the crypto world yields a complex picture of transient exuberance, longevity and lessons in the cryptosphere’s fickleness.
Source: Coindesk
