Of Base, Friend.tech, and the future of SocialFi
- Friend.tech has made changes to improve security on its network.
- Activity on Base remained high, but TVL fell considerably.
Friend.tech has been gaining popularity in SocialFi since it started. People were drawn to its unique pricing model, which helped bring in users from different parts of the crypto world.
Recently, Friend.tech successfully finalized an on-chain transaction, transferring ownership of its contracts and funds to a new arrangement of multi-signature and professional custody.
Notably, the protocol fee receiving address (0xdd9) moved 7821 Ether [ETH] (equivalent to $16.94 million) to Coinbase. This enhances long-term security and ensures compliance with tax obligations.
We have completed onchain transactions to transfer ownership of the friendtech contract and funds to a new combination of multisig and professional custody.
These changes will improve the long term security of friendtech and allow us to fulfill tax obligations
— friend.tech (@friendtech) December 2, 2023
In terms of fees collected and overall volume on its network, Friend.tech outperformed its competitors massively.
However, overall, activity on the network had fallen at press time. Moreover, the number of transactions that occurred on the Friend.tech network decreased over the last few weeks as well.
But these dwindling metrics were not due to Friend.tech’s underperformance. This occurred due to the general waning of interest in the SocialFi sector. Transactions occurring on other networks also declined during this period.
State of Base
Only time will tell how Friend.tech may impact the Base network. At press time, it was seen that Base had observed an uptick in the number of Daily Active Addresses, outdoing Optimism [OP] in the process.
Coupled with that, it also saw a spike in the number of transactions taking place on the network. However, despite this, it still wasn’t able to compete with the likes of Arbitrum [ARB] or zkSync in the Layer 2 space.
In terms of the DeFi space, it was seen that the TVL collected by Base had fallen. DEX volumes on the network had also declined during the same period.
A fall in both these metrics at the same time points towards a decrease in the overall activity of the DeFi ecosystem. However, this may not always be the case.