Good friend.tech, a decentralized social media platform, has skilled a speedy resurgence, with its Complete Locked Worth (TVL) doubling to almost $20 million in simply the previous 4 days.
This revival comes after a short interval of stagnation and skepticism. Launched on Coinbase’s Layer 2 Base on August 11, the platform confronted criticism when key metrics resembling exercise, inflows, and quantity declined considerably two weeks in the past. Person engagement had additionally dropped notably throughout this time.
In simply 10 days post-launch, the platform achieved a powerful income of almost $5.9 million in charges.
Nonetheless, shortly after that, person engagement skilled a major downturn. Every day charges plummeted by almost 87%, and transaction volumes considerably declined by 90% over the next week.
On August 22, the whole charges collected from Good friend.tech customers skilled a pointy decline from over $1.7 million on August 21 to about $740,000, in line with DeFi Llama.
This sharp drop led the crypto neighborhood to query the protocol’s viability, with some even proclaiming it “lifeless.”
Additionally in line with Lisandro Rodriguez, a funds threat supervisor at Coinbase, who took to X to claim that Good friend.tech’s downfall was a results of each human greed and an insufficient scaling technique.
The presence of automated buying and selling bots has been implicated in profiting from swift worth fluctuations, doubtlessly distorting the order of transactions.
“Whereas I do suppose the concept of buddies tech was cool, the greed and poor execution led to its demise,” Rodriguez added.
Nonetheless, the state of affairs has taken an enormous flip as Good friend.tech has reached a brand new peak over the previous few days.
In line with information from Dune Analytics, the platform had seen an influx of just about $12.3 million in every day buying and selling quantity, making it the third most revenue-generating dApp throughout the whole DeFi ecosystem.
The sudden surge in buying and selling exercise despatched shockwaves all through the whole cryptocurrency ecosystem. Remarkably, on that day, the whole locked worth of Good friend.tech exceeded that of OpenSea, a distinguished NFT market, by almost $3 million.
Good friend.tech Information 104% Enhance in Customers, Implements Key Updates, and Boosts Base Community TVL
Good friend.tech has witnessed a surge in exercise previously few days because it has gained recognition among the many crypto neighborhood and influencers.
It has seen many non-crypto figures on its platform previously few weeks, with famend YouTubers and OnlyFans creators drawn by its creator-centric options.
Since September 9, the variety of customers on the platform has elevated by 104%, with a minimum of one initiating a commerce on the platform, growing the whole variety of its customers by over 140,00, in line with Dune Analytic dashboard.
Moreover, Good friend.tech has rolled out many updates to enhance the performance and person expertise of the app over the previous few weeks.
After its debut on August 11, the platform confronted a large number of bugs and technical glitches.
Nonetheless, the event staff has since launched vital enhancements, resembling the aptitude to add photographs, the choice to make purchases utilizing bank cards, and the introduction of latest sections for numerous actions.
On account of the large spike within the TVL of Good friend.tech, Base, the mother or father community on which it’s constructed, has additionally seen a slight rise in whole locked worth.
Shifting by 1% from a locked worth of $385 million to $389.97 million on September 9.