Base Network Activity Surges, Exceeds Arbitrum and Optimism Following Friend.tech Frenzy
Coinbase-incubated layer-2 network Base realized increased activity driven by the Friend. tech application. The unveiling of the Friend. tech applications on the Base network has attracted increased usage.
The application tokenizes Twitter accounts, lifting activity beyond Optimism and Arbitrium networks. The Twitter-linked crypto application allows users to purchase and sell shares tied to social media personalities.
Crypto analysts are linking the Friend.tech application built by the pseudonymous developer Racer. The application went live on August 11 leveraging an invite-only beta 24 hours after Base launched on mainnet. The application realized server capacity immediately on launch day.
The application garnered explosive popularity among the niche crypto segment by Friday, August 18. The unique users within the application are surging.
Overview of Friend.tech Performance
The total number of buyers is 112,423, with sellers aggregating to 45,677. A revisit of the total purchases is $37,890,930, translating into 22,208.92 ETH. A review of the sales shows 18,945.90 ETH, yielding $32,265,305.
A review of the Friend.tech application shows that the cumulative tokens in the transaction are 2,042,427. The inflow assessment shows 41,154.469 ETH, which translates to $ 70,155,635 as per data from Dune.
A review of Friend.tech’s revenue and fees earned on August 20 surpassed that realized by Uniswap and MakerDAO, which are considered market leaders. Also, the amount triumphed earnings by layer-1 Tron and Bitcoin as illustrated by DeFiLlama data. The application has realized a cumulative protocol fee of $3.5 million.
The Friend-tech application is drawing increased activity in the newly launched Base blockchain. Its daily transactions are estimated at 785.55K at the time of writing compared to 608000 in Arbitrum and 475,490 in Optimism.
Friend.tech involves a mobile-based platform tied to Twitter engaged in tokenizing user accounts. It facilitates users in purchasing another account’s share to gain exclusive access to the target account’s private chat room.
Friend.tech Using Bonding Curves to Calculate Price
Friend.tech utilizes a unique design fueling its popularity for implementing bonding curves. The curve mirrors Uniswap’s automated market-making design in calculating the purchase and selling prices.
Traders within the application are not mandated to identify counterparty to acquire and sell shares. Instead, the application leverages the automated mathematical formula to influence the price relative to the users holding the account’s shares. The share’s price increases with the shareholders.
A review of Friend.tech operations illustrates that influencer and popular crypto investor Cobie’s account carries a value of 2.04 ETH, translating into $3400, and has 145 holders. It surpasses Adam Cohran’s account. The crypto analyst account has 57 holders with an estimated value of $0.576 ETH.
Friend.tech Weathers Criticism to Realize Notable Uptake
Critics of the application suggest that the hype is fuelling the Friend. tech popularity would soon subside. An anonymous crypto analyst in decentralized finance (DeFi) likened the application to mere speculation on shitcoins. Besides, the analyst indicates that the application is based upon the influencers’ shares and speculating potential airdrops.
The pseudonymous crypto analyst alleges it portrays a steep bonding curve, making it challenging to attract additional users. The analyst added that it becomes very expensive following the 100 shareholders.
Friend.tech is attracting considerable traction driven by notable personnel adopting the social media application. The notable uptake is evident outside crypto circles including the Y Combinator founder Garry Tan. Other users include gaming professional Faze Banks and NBA star Grayson Allen.
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