Tech
Friend.tech exceeds $50 million TVL across high commissions and revenues
Friend.tech, a social tokenization platform built on Base, has reached a significant milestone with $50 million Total Value Locked (TVL) starting September 3, 2023. This revolutionary project allows users to create and trade their own tokens based on their social influence.
According to data from Dune AnalyticsFriend.tech has consistently generated approximately $1.1 million in daily commissions since September 8, 2023. This exceeds the commissions generated by other major crypto platforms such as Bitcoin, Opensea, and MakerDAO.
Source: Friend.tech
Friend.tech growth and revenues
Friend.tech was launched on August 10, 2023. It quickly gained popularity among cryptocurrency enthusiasts and influencers. the project attracted notable growth from TVL, establishing itself as one of the largest projects on Base. The platform’s high demand for keys subsequently generated significant trading volumes and commissions.
Read also: Solana growing unstoppably towards $25, DeFi TVL at 2023 highs
The protocol stores its earnings in an Externally Owned Account (EOA), accumulating over 11,000 ETH ($18 million) as of September 3, 2023. Despite this substantial amount, there have yet to be any charges from the address, resulting in questions raised regarding treasury usage and governance.
Source: Friend.tech
Key fees and user challenges
Friend.tech offers a unique and exciting opportunity to monetize social media interactions. However, it presents challenges and risks for its users. One such challenge is the minimum deposit requirement of 0.01 ETH (~$20) to create a key, which may discourage potential users from joining the platform.
Read also: Major theft in Friend.Tech protocol raises questions about decentralization
Additionally, to break even, a user would need at least eight traders to purchase their key – a tall order for less popular or new creators. Another obstacle is the uneven distribution of earnings among top creators.
Statistical data indicates that of all royalties distributed, the top 30 creators claimed 15% of them, while approximately 183,657 users own less than two keys in circulation, earning an average income of less than $1.
However, there are opportunities for Friend.tech users to expand their audience and revenue on the platform as well. For example, they can participate in the referral program when they invite new users to earn them rewards, a percentage of their key transactions.