- Friend.tech experiences a decline with a 21% drop in TVL and a significant Ether withdrawal.
- Base Network’s resilience showcased by an increase in daily active users despite Friend.tech’s challenges.
- Base’s strategic moves, including gaming integration, position it for growth and competition in the crypto layer-2 space.
Friend.tech, an erstwhile sensation in the crypto world, is now grappling with a decline in interest after its initial surge in popularity. Lauded for its innovative approach that allowed users to monetize their crypto influence, the platform experienced its highest trading volume between November 18th and 19th, with a notable withdrawal of 4.42k Ether [ETH] over the weekend.
The Total Value Locked (TVL) in Friend.tech witnessed a significant drop of around 21%, hitting a low of 16,900 ETH—its lowest point in nearly two months. This dip in TVL could potentially indicate users cashing out, raising concerns about the platform’s overall health and signaling diminished engagement and trust.
The decline in TVL over the past two months prompts speculation about shifting user sentiments or preferences. Friend.tech may need to address these concerns promptly, enhancing its offerings to regain momentum and attract new users while retaining existing ones.
The repercussions of Friend.tech’s dwindling activity extend to Base, the platform on which Friend.tech operates. A decrease in Friend.tech’s usage on Base could result in reduced transaction volumes and interactions within the network, potentially impacting Base’s scalability objectives on the Ethereum layer-2.
Despite these challenges, Base has shown resilience in other areas. The number of daily active users on the Base network has increased, indicating a positive trajectory. While Base currently lags behind Arbitrum and Optimism in overall L2 space, it managed to surpass Optimism in terms of transactions.
Base’s recent ventures into the gaming sector, exemplified by the integration of Openfort with the Base network, could be a strategic move to boost sentiment and distinguish itself from other networks. This development might provide Base with a competitive edge and contribute to its growth in the evolving landscape of layer-2 solutions in the crypto space.
This integration offers game developers:
→ A scalable, low-cost environment on BASE.
→ Simplified blockchain interactions through account abstraction.
— Openfort (@openfortxyz) November 16, 2023
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.