Friend.tech generates record $1.8m in fees in 48 hours

At a time when the crypto market is not faring well, it would be a stretch to assume that the likes of social tokens would be able to gain attention. However, Friend.tech has debunked that theory rather spectacularly as it has managed to break records for the second time just a month after its launch.

Friend.tech notes million in fees

Friend.tech first came into the spotlight right after its launch last month. The platform, which launched on Coinbase’s layer-2 solution Base, simply empowers users to tokenize their identity. This is achieved by selling and buying “keys,” which are basically a share of social media influencers.

Friend.tech first came to light on August 22 when it garnered over $800,000 in fees within a single day. However, the hype dropped off soon after and the social token platform was considered to be just another Decentralized Application (Dapp). This changed in the last two days as the interest surrounding the platform revived.

In the span of 48 hours on September 13 and 14, Friend.tech managed to generate more than $1.8 million in fees. Of the two days, September 13 created history by bringing in nearly $1 million in fees in a single day, which goes directly to the creator. In comparison to all the Ethereum non-fungible token (NFT) exchanges, Friend.tech paid out nine times the amount paid to the creators of NFTs by these exchanges combined.

Friend.tech fees generated in 24 hours

The demand for the platform and social tokens scaled to the point where Friend.tech surpassed the likes of Tron, Lido, Uniswap, and OpenSea, among other Dapps, to emerge as the second largest generator of fees in 24 hours. Ethereum, entirely as a blockchain, stood as the only one capable enough of eclipsing the platform.

Friend.tech revenue generated

Friend.tech has been hailed for its revival of the concept of social tokens, with angel fund Tangent founder Jason Choi stating,

“Still early, but FriendTech may revive the idea of fungible social tokens

Prior to FT, the consensus was that NFTs became what social tokens were meant to be

Turns out it might not be a question of the instrument, but the platform on which you transact. (sic)

This hype could be difficult to sustain in comparison to the month of August, and the reason behind this is the demand for these tokens. According to data obtained from Dune, the platform is catering to nearly 2.2k active buyers at the moment. To draw a comparison, back on August 21, the previous peak of the Dapp, the active buyers crossed the 3.6k mark.

Friend.tech active buyers and sellers

Thus, if the buyers shy away, no amount of active sellers would be able to rake in enough fees to sustain such staggering revenue, consequently losing the interest of users as well.