Just a few months back, social finance (socialfi) platforms were the talk of the town, with Friend.tech leading the charge amidst surging popularity. Yet, as the curtains closed on October 2023, this once-celebrated socialfi platform witnessed a sharp decline in user engagement, and data from defillama.com revealed a steep fall in its revenue.
From Crypto Craze to Quiet Decline
During the height of the socialfi buzz in mid-August, crypto enthusiasts couldnβt stop discussing platforms like Friend.tech, a decentralized network driven by social tokens. Friend.tech introduced a novel concept allowing users to purchase and sell βkeysβ to initiate conversations with others, essentially letting individuals capitalize on their social influence. By Aug. 21, 2023, Friend.tech boasted an impressive tally of 1.51 million transactions and $840K in revenue within a 24-hour span.
Come mid-September 2023, daily transactions on Friend.tech fluctuated between 250,000 and over 500,000. Yet, the platform began to experience a marked downturn in activity and revenue post-Oct. 29, 2023. Transactions nosedived by nearly 90%, and revenue tumbled from a mid-September peak of $1.14 million to under $60,000 by February 3, 2024. According to defillama.com, the total value locked (TVL) in Friend.tech also saw a reduction, dropping from $52 million to a present $28.33 million.
Nowadays, mentions of Friend.tech on social media platforms like X are few and far between, save for discussions on its rapid decline. Haseeb Qureshi, the managing partner at the cross-border crypto venture fund Dragonfly, lamented on X, βWow. Friend.tech really went from crypto darling to desertion in about 4 months.β Besides Friend.tech, the Arbitrum blockchain mimic, Post.tech, too has been facing a similar slump in activity.
A glance at Google Trends further reveals that interest in Friend.tech has been waning since the tail end of August. The search term βFriend.techβ hit its zenith with a score of 100 during the week of Aug. 20 to Aug. 26, 2023. Currently, the search interest for βFriend.techβ on Google Trends hovers at a mere 3 out of 100. Despite the global downturn in interest, the top five regions still showing curiosity in the socialfi platform include China, Nigeria, Singapore, Switzerland, and Portugal.
Why do you think interest in Friend.tech has declined? Share your thoughts and opinions about this subject in the comments section below.
