Friend Tech, a decentralized finance (DeFi) platform, has seen its primary data hit all-time lows in recent weeks. On November 1st, the platform recorded a total volume of $881k, fee capture of $881k, and 6.03k traders, all of which were the lowest since early September. This was seen from data from Dune.
Additionally, Friend Tech’s daily average new users in the past three days has been about 560, and the proportion of Gas usage in the Base network has dropped to 3.8%, both approaching historical lows. Currently, Friend Tech’s TVL has dropped approximately 25.8% to 22,431 ETH from its peak of 30,247 ETH in early October.
A competitive business environment
These declining metrics raise concerns about the future of the Friend Tech platform. Some analysts have speculated that the platform may be losing users due to competition from other DeFi platforms, while others believe that the broader crypto market downturn is playing a role.
“The declining primary data on Friend Tech is concerning,” said one industry expert. “It suggests that the platform is losing users and activity. This could be due to a number of factors, such as competition from other DeFi platforms, the broader crypto market downturn, or even issues with the platform itself.”
Concerns about investor confidence in Friend Tech
The declining primary data on Friend Tech has a number of potential implications for the future of the platform. If the current trends continue, the platform could lose users and activity, which could lead to a decrease in liquidity and make it more difficult to attract new users and developers. Additionally, the platform’s TVL could continue to decline, which could make it less attractive to investors.
However, there are also a number of potential positive outcomes for Friend Tech. If the platform team is able to address the issues that are causing the decline in primary data, the platform could rebound and experience renewed growth. Additionally, the broader crypto market could recover, which would benefit all DeFi platforms, including Friend Tech.
A possible growth cycle
“It’s important to note that Friend Tech is still a relatively new platform,” said another expert. “It’s possible that the platform is simply going through a growth cycle. However, if the current trends continue, it will be important for the Friend Tech team to take steps to address the situation.”
The declining primary data on Friend Tech is a concerning trend. However, it’s important to note that the platform is still relatively new, and it’s possible that the platform is simply going through a growth cycle. If the current trends continue, it will be important for the Friend Tech team to take steps to address the situation.
