Journalist
Posted:
- Friend.tech has seen a decline in TVL in recent days.
- Activity on the Base network continued to grow.
Friend.tech took the crypto world by storm when it was first announced. A large majority of people signed up almost immediately as it allowed many users to monetize their popularity in the crypto space.
However, after the initial fame, the hype surrounding the network began to fade.
The party is over
Between November 18 and 19, Friend.tech experienced its highest trading volume in more than half a month, exceeding $10 million. During the weekend a total of 4.42k Ether [ETH] was withdrawn from Friend.tech.
The Total Value Locked (TVL) in Friend.tech fell around 21% to 16,900 ETH, marking the lowest in almost two months.
Friend.tech’s spike in trading volume and ETH withdrawals could indicate that users are cashing out, impacting the overall health of the platform. A decrease in TVL signals reduced engagement and trust.
Maintaining a lower TVL can impact the platform’s ability to attract new users and retain existing users.
The drop in TVL to a two-month low could indicate a shift in user sentiment or preferences, requiring Friend.tech to address potential issues or improve its offerings to regain momentum.
How does Base hold up?
A decrease in Friend.tech’s activity on Base could impact the network’s overall user engagement. Because Friend.tech operates on Base, a decline in its usage could lead to reduced transaction volumes and interactions within the Base network.
This could impact Base’s scalability goals, slowing the growth it wants to achieve on Ethereum layer-2. It is critical for Base to address all the challenges Friend.tech faces to maintain a thriving ecosystem and fulfill its mission of scaling user interactions across the chain.
Despite these factors, the number of daily active users on the Base network grew. Furthermore, looking at the total L2 space, the Base network lagged behind Arbitrum and Optimism in this regard. However, in terms of transactions, Base had managed to turn around the Optimism network.
Source: Artemis
Base’s recent forays into gaming could also help the network grow further. Openfort recently integrated with the Base network. This could improve sentiment around Base and give it an edge over other networks.
Exciting development🔊 Openfort is integrated with @BuildOnBaseCoinbase’s Layer 2 solution. https://t.co/fQ5xhUtpnN
This integration offers game developers:
→ A scalable, cheap environment on BASE.
→ Simplified blockchain interactions through account abstraction.
→…— Openfort (@openfortxyz) November 16, 2023