- Social app Friend.tech, which recently became the leading crypto platform by revenue activity, has seen a significant decline in its buying and selling volumes by 95%.
- Friend.tech offers a platform where former Twitter personalities can issue 'keys' for access to exclusive group chats, earning over $4.2 million worth of ether in fees for creators.
- Built on Coinbase's layer-2 network called Base, Friend.tech's transactional activity dropped from a peak of $16 million on August 21 to around $700,000 as of Thursday.
- However, analytics firm Arkham noted that some exit narratives may be exaggerated, as users still hold 3,870 ETH worth of keys, a decrease of 10% in the past week.
- While cumulative volumes grew slightly from $80 million to $85 million during the week, new user sign-ups have been declining, indicating initial demand may have been met.
- The developers of Friend.tech claim that more than 75% of key holders use the app on the next day after acquiring the keys, and over 50% continue using it even after a week.
