Friend.tech’s revenue hit $5.6 million on September 9, marking a 30-day high for the newly launched blockchain social networking platform, which has regained some of its lost momentum, according to Token Terminal data.
The strong revenue is driven by a steady increase in usage over the past two weeks, despite a significant decline in the hype it initially generated after launching on the Base blockchain.
Statistics
Friend.tech registered 9,000 Daily Active Users (DAUs), with 2,000 new signups on September 9. In addition to this user activity, the platform recorded a trading volume of $12.3 million, making it the third highest trading day since launch.
Meanwhile, fees collected by the platform for the day amounted to $1.23 million – making it the third-highest fee-generating day for any blockchain chain or dApp in the cryptocurrency market.
According to data from the chain, on September 9, the platform recorded 92,000 significant transactions, while the Total Value Locked (TVL) stood at $19.73 million. Since its founding, Friend.tech has attracted 138,169 unique buyers.
In terms of market dynamics, the combined market cap of all its keys is reported at $57 million. The top 250 keys account for a market capitalization of $43 million.
Decline in initial hype
Friend.tech’s beta made an impressive debut on Coinbase’s layer-2 Base on August 11, and within 10 days the platform’s fees skyrocketed – surpassing heavyweights like Uniswap and the Bitcoin Network with more than $1 million in fees in hand one day.
However, such rapid success turned out to be short-lived. At the end of August, Friend.tech suffered a more than 87% drop in daily fees and a sharp 90% drop in transaction volume.
The core of Friend.tech’s innovation is that users can buy and sell ‘keys’. These keys are a unique concept that allows buyers to send private messages to sellers, with the platform profiting by taking a 5% share of the transaction.
This innovative feature attracted the interest of several high-profile figures, both from the cryptocurrency world and the wider entertainment industry. The list includes UpOnly podcast host, famous YouTuber Faze Banks and even Russian protest ensemble Pussy Riot.
However, critics have been quick to parse the reasons behind the rapid decline, with many, including Coinbase payments risk manager Lisandro Rodriguez, attributing it to a combination of “greed and poor execution.”
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