- Decentralized social network Friend.tech faces user exodus as daily transactions drop to record new low.
- Network fees and protocol TVL have been impacted.
User activity on Friend.tech has cratered to a historic low as more users have started to abandon the decentralized social network, data from a Dune Analytics dashboard prepared by 21.Co showed.
On-chain data showed that daily user activity on the protocol peaked on the 13th of September after it clinched an all-time high daily transactions count of 539,810.
Since then, daily demand for Friend.tech has dwindled.
According to data from Dune Analytics, the steady decline in the hype around the protocol in the past few months has led to a significant drop in the count of new users who complete at least one trade daily.
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This month alone, the daily count of new users on Friend.tech has decreased by 95%. For context, at the beginning of the month, the protocol recorded a new user count of 1831.
By the 25th of February, it saw only 55 new users.
When the demand for Friend.tech was at its peak, it recorded a single-day high of $2 million in transaction fees, notably on the 14th of September.
However, as of the 25th of February, daily fees recorded by Friend.tech totaled $7900, marking a 99% drop in protocol fees from the all-time high.
So far in 2024, the highest that the platform has seen in fees was $236,000, which was registered on the 6th of February.
Further, as user exit intensified since September, USD outflows from Friend.tech rallied, according to data from DefiLlama.
So far, in February 2024, $11.23 million has been removed from the protocol by its users in the form of sold keys. This has already exceeded January’s outflows by 65%.
Regarding Friend.tech’s total value locked (TVL), it reached an all-time high of $52 million on the 2nd of October. Also, impacted by the low user activity on the protocol, it has since dropped by 46%.
As of this writing, Friend.tech’s TVL was $28 million, logging a 22% drop since the year began.
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