According to CryptoPotato, over the weekend, the total trading volume on Friend.tech exceeded $10 million, marking the highest level in several weeks. However, industry analyst Colin Wu suggests that this may be an exit behavior. Data from Dune Analytics shows that Ethereum is being withdrawn from the platform at a faster rate than it is being minted, as keys are being redeemed.
More than 5,000 ETH was withdrawn from Friend.tech over the weekend, representing the largest withdrawal since October 24, when 4,380 ETH was taken off in a single day. Additionally, the total value locked (TVL) on the platform fell by 21% over the weekend to 17,100 ETH, or $33.6 million, the lowest level since mid-September. Since its peak of around $50 million in early October, Friend.tech's TVL has dropped by approximately 34%.
The platform has also seen virtually no increase in the number of new users since late October. Dune Analytics reports a total cumulative user figure of 839,190, but overall activity has declined. Friend.tech has faced issues with scams, as malicious actors target its users through phishing and SIM-swap attacks. Over the weekend, the team reported identifying and removing 600,000 accounts identified as bots, but it appears that genuine users have also been locked out.
Prominent crypto influencers have reported being locked out of the platform, with one user claiming to have lost more than 10 ETH, which the platform will not help them recover. Analyst Alex Krüger also reported being locked out of Friend.tech, stating that the team 'refused to help.' As users become increasingly disgruntled with the platform and begin withdrawing their assets, the hype surrounding Friend.tech may be waning.
