Friend.tech Revenues Plummet 90% as Social App Hype Cools

The hype around Friend.tech, the buzzy crypto app on the Base blockchain, appears to have been short-lived.

The app's daily revenues have dropped by over 95%, from a peak of $840,000 on August 21 to just $80,500 yesterday, according to data from DeFiLlama.

Friend.tech lets Twitter users tokenize their accounts and then sell “keys” on the platform to interested buyers. Keyholders then gain access to a private chat group controlled by the account owner.

The app had risen as high as second in daily revenues, surpassing market leaders such as Lido, Uniswap, and even layer-1 blockchains like Bitcoin.

This morning, however, Friend.tech dropped out of the top ten list entirely.

The number of hourly active users dropped from a peak above 4,700 on August 21 to less than 600 active users per hour this morning, according to CryptoKoryo’s Dune dashboard.

The number of fresh users interacting with the dApp has also slowed down after witnessing a dramatic increase last week.

Friend.tech recently saw an influx of OnlyFans accounts, which increased optimism around the app in its ability to attract people outside of crypto.

However, the application’s economic model has come under scrutiny for several reasons.

The price of keys increases proportionally with the number of tokens sold and existing holders.

Keys’ trading prices for top Friend.tech accounts such as crypto influencer Cobie, Inversebrah, 0xSisyphus, and online gamer Faze Bank dropped significantly since last week.