Friend.tech Makes a Comeback with $20M TVL
Friend.tech, a decentralized social network, makes a remarkable comeback with TVL reaching an all-time high after facing a significant decline.
Friend.tech, a decentralized social network, after facing a significant decline, the platform has made a remarkable comeback, with its TVL reaching an all-time high.
On August 28, the crypto community on X (previously known as Twitter) labeled Friend.tech as "dead." This sentiment was driven by a sharp decline in the platform's total fees, revenue, and TVL. Data from DeFi Llama highlighted that the total fees from Friend.tech users plummeted from approximately $1.7 million on August 21 to nearly $740,000 on August 22. Such a drastic drop led many to believe that the protocol had met its end.
Contrary to the prevailing sentiment, Friend.tech began to show signs of recovery. Starting from September 2, the platform's TVL witnessed a consistent upward trajectory. This growth culminated on September 10 when the TVL momentarily surpassed the $20 million mark. As of this writing, the protocol's TVL stands impressively close to this peak, at $19.89 million.
However, it's essential to note that while the TVL showcased growth, the total fees on Friend.tech have been on a decline since September 9. The fees dropped from $1.23 million to $929,000 over a span of two days. Alongside this, the platform's daily revenue also saw a reduction, moving from $615,000 to $464,000 within the same timeframe.
According to data from DeFi Llama, since its inception, Friend.tech has accumulated approximately $12.36 million in fees. In terms of revenue, the platform has generated a cumulative amount of $6.18 million. These figures, while impressive, also highlight the platform's challenges in maintaining consistent growth in both fees and revenue, even as its TVL rises.