The total value locked (TVL) on the decentralized social finance (SocialFi) application Friend.tech fell 19% in a few days as user adoption slows down.
Friend.tech, which launched in August, is built on Base, an Ethereum (ETH) scaling solution supported by the Coinbase crypto exchange.
The application allows users to tokenize themselves by selling shares or “keys” to their followers.
According to blockchain data platform Dune Analytics, Friend.tech’s total value locked slumped from $42.26 million on November 17th to $34.03 million on November 20th – a drop of around 19.5%.
TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem.
The decentralized social network’s total value locked hit an all-time high of $51.68 million on October 2nd but the metric has since taken on a downward trend.
After weeks of attracting roughly thousands of new users daily, Friend.tech’s user growth has recently flattened, per Dune Analytics. In mid-October, the number of new users added on a single day on the decentralized social network hit an all-time high of slightly over 70,000.
On November 20th after the TVL fell to a two-month low, Friend.tech recorded just 140 new users. The cumulative number of users added over the past four months since the inception of Friend.tech currently stands at slightly over 839,000.
The fall in total value locked and new user growth comes amid the decentralized social network’s efforts to reduce the number of bots on the platform. Friend.tech announced last week that they had removed around 600,000 accounts that were positively identified as bots.
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