Decentralized social media platform Friend.tech based on Coinbase’s Layer 2 protocol has reached new heights in terms of revenue growth and total value locked on its platform.
according to Data From Dune Analytics, Friend.tech’s revenue rose to 10,663 ETH and its TVL grew to over 30,000 ETH on October 2. The recent surge in its revenues and trading activity comes amid a decline in hype since the first days of its launch.
As a decentralized social network platform launched in August 2023, Friend.tech allows users to exchange “keys” associated with X (formerly Twitter) accounts owned by their friends or influencers. These keys allow users to access private in-app chat rooms and content available only from the corresponding X user. Users can buy shares for their friends and influencers on the platform.
While the concept of a decentralized social network platform with a revenue sharing model has been praised by many in the Web3 space, the platform has also attracted the attention of critics.
Let me tell you one thing.
Something is not right @friendtech.
Creators making money with a group chat that doesn’t even work when you can’t even reply directly to people?
The way the pricing works is ridiculous and can easily be taken advantage of.
Pumps and dumps. pic.twitter.com/TJqcktEM6P
– Yazan (@YazanXBT) August 20, 2023
The decentralized social media platform has been declared dead on numerous occasions since its launch two months ago. One cryptocurrency commentator questioned its revenue model and gave the platform 6-8 weeks before the magic faded. Critics have pointed out that the rate at which stock prices rose in the first two weeks makes it unsustainable in the long term.
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However, despite the criticism, Friend.tech has continued to see new record increases in revenue and user growth.
The recent surge in its revenue comes as the user base with social transactions on the platform rises to 9,200,882. While the current trading volume has seen a decline from the high seen in the first week of September, the steady growth in revenue and TVL indicates that the platform is still gaining traction from users.
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