Scores of market participants are singling out social app Friend.tech as being the latest crypto fad that rose, and fizzled, within days, pointing to falling revenue activity. The platform became the largest crypto platform by that metric earlier this month.
Data shows transactional activity on the platform has slumped from a peak of $16 million on August 21 to just over $700,000 as of Thursday – or a 95% drop in buying and selling volumes.
"On-chain, some of the exit narratives seem a little exaggerated," tweeted analytics firm Arkham. It pointed out users continue to hold 3,870 ETH worth of keys, or just a 10% drop over the past week.
Cumulative volumes grew from $80 million to $85 million so far this week, flatlining from a multifold surge from $2 million to $80 million in the first two weeks after going live on August 10.
But actual user activity is seemingly chugging along. The data shows total users have nearly doubled in the past week – with at least 5,000 returning users daily, or those who use the platform on consecutive days.
New users have steadily dropped over this period, however, suggesting most demand or interest was met in the initial days.
"The average active key holder spends over 30 minutes per day using friendtech," developers said Thursday.
A slew of personalities outside of crypto circles on X joined Friend.tech in the past few weeks, fueling its viral popularity, including the likes of Richard “FaZe Banks” Bengtson II, co-founder of the influential esports community FaZe Clan, NBA player Grayson Allen and a bunch of popular creators from subscription site OnlyFans.
Such growth has come in a very short time, even for crypto’s fast-moving standards. Friend.tech’s invite-only beta launched on August 10 and racked up some 4,400 ETH (about $8.1 million) in trading volume on the first day.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.