The total value locked (TVL) in the decentralized social media platform Friend.tech has experienced a sudden and significant surge, tripling in just four days to surpass $20 million.
Notably, only two weeks ago, many skeptics had declared the platform as "dead" due to perceived inactivity. However, over the past several days, trading activity on Friend.tech has seen a remarkable resurgence. On September 9, the app's daily trade volume reached an impressive $12.3 million, marking its third-highest level ever, according to data from Dune Analytics.
Friend.tech even managed to surpass OpenSea in terms of trading volume on September 9, transacting more than $3 million more than the prominent NFT platform on that day, as pointed out by the pseudonymous account TylerDidIt. Another notable pseudonymous cryptocurrency account, Herro, which currently ranks as the fourth-largest account on the platform, has expressed optimism about Friend.tech's future. Herro suggests that the platform is likely to remain operational for the foreseeable future, at least until a potential Friend.tech token launch in the coming months.
The upcoming token launch, anticipated to occur in approximately five months, will play a crucial role in shaping Friend.tech's future. According to Herro, success will hinge on the actions of the team both before and after the token launch. Herro anticipates cost reductions, increased income for creators, and the inclusion of non-crypto native users as key strategies.
The remarkable growth in Friend.tech's activity lacks a single, definitive explanation, but several notable figures in the cryptocurrency sector have acknowledged contributing factors. Renowned trader Hsaka humorously noted that users seemed to have increased their TVL once they realized that Friend.tech chat was essentially a rebranded yield farm, a reference to users seeking potential profits through buying or selling someone else's "keys" while paying a 5% fee.
Another potential driver for the increased activity on Friend.tech could be the growing number of non-crypto users who have recently joined the platform, including several well-known YouTubers and OnlyFans creators. This diversity underscores the platform's broad appeal, as suggested by PancakesBrah, the anonymous account responsible for Friend.tech's growth and business development. Friend.tech has also introduced various enhancements to improve functionality and user experience.
Despite initial glitches and technical challenges, the platform has steadily introduced additional features, such as the ability to upload images, a purchasing option that accepts credit cards, and a new section for viewing various types of activity. Friend.tech also went live on Coinbase's Layer-2 Base on August 11, generating an impressive $5.9 million in fees within the first ten days. However, a subsequent decline in user activity led some prematurely to label the platform as "dead."
