After Friend.tech took crypto Twitter by storm following its August 11 debut, by the end of the month, the initial hype had dwindled and the Web3 social platform appeared all but dead.
But after hitting a growth low point on September 2, when only 349 new users joined Friend.tech, the decentralized social network has experienced a resurgence. And on Wednesday, September 13, it had its most profitable day yet.
Friend.tech allows users to trade tokenized shares (known as “keys”) in social media influencers, with each key recorded as a token on the Base blockchain.
In financial terms, September 13 was the Web3 network’s most successful day since it launched. Reaching a new record daily trading volume $18.52M, the platform raked in $1.9M in fees, another all-time high.
The total value locked on Friend.tech has now surpassed $32M and it has generated over $16M in revenues.
However, not everyone in the cryptosphere is convinced by the buzzy platform.
For Friend.tech’s critics, the platform crystalizes everything that is wrong with crypto trading—mindless speculation, boom-and-bust markets and endless social media shilling.
From the beginning of September, growth in trade volume has outpaced growth in the number of trades. In other words, the ETH locked on Friend.tech is becoming increasingly concentrated, inflating the price of the most valuable keys.
The most successful Friend.tech users sell keys for thousands of dollars each. In one instance @0xRacerAlt has raised 159.526 ETH ($258.57K) by selling keys for as much as 8.626 ETH ($13.98K) each.
At the beginning of the month, it looked as if Friend.tech’s user growth had stalled. Between September 2 and September 9, less than a thousand new users joined the social network each day.In contrast, at its peak on August 21, over 20,000 new Friend.tech accounts were created.
With interest waning, some observers declared the platform dead.
However, after flatlining for a period, Friend.tech’s user base has started to swell again. On Wednesday, the number of new users topped 5,000 for the first time since August 23, bringing the total to over 150,00.
For Friend.tech to succeed in the long run, the quality, rather than the quantity of users is what matters.
If it becomes nothing more than another crypto market, where speculative investors trade tokens without engaging in the private groups that keys give access to, influencers may ultimately abandon it in favor of alternative monetization avenues.