Friend.tech sees a decline in interest, but Base persists

Jour­nal­ist

Post­ed: Novem­ber 21, 2023

• Friend.tech saw a decline in TVL over the last few days.
• Activ­i­ty on the Base net­work con­tin­ued to grow.

Friend.tech took the cryp­to world by storm when it was first announced. A large major­i­ty of peo­ple signed up almost instant­ly, as it allowed many users to mon­e­tize their pop­u­lar­i­ty in the cryp­to space.

How­ev­er, after its ini­tial rise to fame, the hype around the net­work start­ed to fade away.

Is the party over

Between the 18th and the 19th of Novem­ber, Friend.tech expe­ri­enced its high­est trad­ing vol­ume in over half a month, sur­pass­ing $10 mil­lion. Over the week­end, a total of 4.42k Ether [ETH] was with­drawn from Friend.tech.

The Total Val­ue Locked (TVL) in Friend.tech decreased by approx­i­mate­ly 21% to 16,900 ETH, mark­ing its low­est point in near­ly two months.

The spike in trad­ing vol­ume and ETH with­drawals from Friend.tech could sug­gest users cash­ing out, impact­ing the platform’s over­all health. A decline in TVL sig­nals reduced engage­ment and trust.

Main­tain­ing a low­er TVL might affect the platform’s abil­i­ty to attract new users and retain exist­ing ones.

The decrease in TVL to its low­est point in two months may indi­cate a shift in user sen­ti­ment or pref­er­ences, requir­ing Friend.tech to address poten­tial con­cerns or enhance its offer­ings to regain momentum.

How is Base holding up?

A decrease in Friend.tech’s activ­i­ty on Base might impact the network’s over­all user engage­ment. As Friend.tech oper­ates on Base, a drop in its usage could lead to reduced trans­ac­tion vol­umes and inter­ac­tions with­in the Base network.

This might affect the scal­a­bil­i­ty objec­tives of Base, slow­ing down the growth it aims to achieve on the Ethereum layer‑2. It’s cru­cial for Base to address any chal­lenges that Friend.tech faces to main­tain a thriv­ing ecosys­tem and ful­fill its mis­sion of scal­ing user inter­ac­tions on-chain.

Despite these fac­tors, the num­ber of dai­ly active users on the Base net­work grew. More­over, while look­ing at the over­all L2 space, the Base net­work fell behind Arbi­trum and Opti­mism in this regard. How­ev­er, in terms of trans­ac­tions, Base was able to flip the Opti­mism network.

Source: Artemis

Base’s recent for­ays into gam­ing could also help the net­work grow fur­ther. Recent­ly, Open­fort inte­grat­ed with the Base net­work. This could improve sen­ti­ment around Base, and give it an edge over oth­er networks.

Excit­ing devel­op­ment🔊 Open­fort has inte­grat­ed with @BuildOnBase, Coin­base’s Lay­er 2 solu­tion. https://t.co/fQ5xhUtpnN

This inte­gra­tion offers game developers:

→ A scal­able, low-cost envi­ron­ment on BASE.
→ Sim­pli­fied blockchain inter­ac­tions through account abstrac­tion.
→…

— Open­fort (@openfortxyz) Novem­ber 16, 2023