Friend.tech regains launch hype momentum as revenue hits $5.6M amid surge in usage

Friend.tech’s revenue hit $5.6 million on Sept. 9, marking a 30-day high for the recently launched blockchain social networking platform, which has regained some of its lost momentum, according to Token Terminal data.

The strong revenue is driven by a steady increase in usage over the last two weeks despite a significant fall in the hype it initially generated after its launch on the Base blockchain.

Stats

Friend.tech registered 9,000 Daily Active Users (DAUs), with 2,000 new sign-ups on Sept. 9.  Alongside this user activity, the platform observed a trading volume of $12.3 million, making it the third-highest trading day since its launch.

Meanwhile, fees collected by the platform for the day stood at $1.23 million — making it the third highest fee-generating day for any blockchain chain or dApp in the cryptocurrency market.

According to on-chain data, the platform recorded 92,000 key trades on Sept. 9, while the Total Value Locked (TVL) stood at $19.73 million. Since its inception, Friend.tech has attracted 138,169 unique buyers.

In terms of market dynamics, the combined market capitalization of all its keys is reported at $57 million. The top 250 keys account for a market cap of $43 million.

Decline in initial hype

Friend.tech’s beta version made an impressive debut on Coinbase’s layer-2 Base on Aug. 11 and within 10 days, the platform’s fees skyrocketed — surpassing heavyweights like Uniswap and the Bitcoin network with over $1 million generated in fees within a single day.

Such meteoric success, however, proved to be short-lived. By the end of August, Friend.tech grappled with an over 87% dip in daily fees and a stark 90% drop in transaction volume.

At its heart, Friend.tech’s primary innovation lies in allowing users to buy and sell “keys.” These keys are a unique concept that enables buyers to send private messages to sellers, with the platform profiting by taking a 5% slice of the transaction.

This innovative feature piqued the interest of several…