According to recent data revealed by Messari, decentralized social media platform Friend.tech boasts an influx of as many as 300,000 unique users, increasing user activity. Addressing potential uncertainties about the platform’s sustainability despite stable user activity and rising daily revenues, Messari research analyst Ally Zach dove deep into Friend.tech’s potential for future growth.
1/ @friendtech has onboarded over 300,000 unique users since launch, but is the platform’s growth sustainable?
🧵 pic.twitter.com/0iBU8cgJOH
– Ally Zach (@0xallyzach) October 6, 2023
While Friend.tech’s weekly chat retention exceeds traditional social networking platforms, its average weekly trading retention has fallen from 22% to just 5% over time. According to the researcher, users would have to spend money “to try out a chat, subject to a 10% tax on entry, and another 10% if the chat doesn’t work”. Zach attributed the platform’s decline in trade retention to minimal online business discussions and interpretations, noting: “This could be a result of FT [Friend.tech] are not well suited to passive content consumption.”
However, the analyst reiterated that user participation in the leisure chats is consistent compared to the inconsistent trade deals, given the significant chat retention. Despite the overall trade retention challenges, the platform witnessed a substantial increase in trading activity in the month of September, with TVL reaching an all-time high of $50 million.
Source: Messari
Additionally, Messari reinforced his optimistic outlook on Friend.tech’s potential growth, revealing its massive average daily revenue of $320,000, which is six times OpenSea’s current daily revenue. Messari talked about the platform’s significant TVL that has surpassed major DeFi players:
FT has surpassed DeFi majors like Lido, Maker and Aave by a factor of more than 100 in daily revenue/TVL since launch… Revenue/TVL indicates both optimized business model execution and a predictive indicator of net worth of a platform to generate sustainable income.
In conclusion, the Messari researcher highlighted the promising nature of Friend.tech, taking into account several metrics. However, it is crucial to maintain momentum, even if current performance portends a promising future.
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