NEW YORK – FriendTech, the pioneering web3 social media application on Coinbase’s Base blockchain, has encountered a substantial decline in user activity, witnessing a staggering 95% drop from its peak transaction volume. Launched in August, the app initially gained attention for its unique feature allowing users to trade shares of their friends using ether.
FriendTech’s innovative approach involved users owning channels through purchased keys, granting access and creating a revenue stream for both the app and the channel owner. Despite an initial surge, recent data from Dune Analytics reveals a sharp decrease in daily transactions, plummeting from a high of 39,000 to significantly lower levels.
Within its first week, FriendTech recorded $35 million in shares traded and attracted 110,000 unique addresses. However, criticisms, including references to it being an “elaborate ponzi” by figures like Beanie, have surfaced, questioning its utilization of a bonding curve on X.com.
Coinbase’s Vice President, Tom Duff Gordon, highlighted the broader potential of the Base blockchain during an appearance on Yahoo Finance UK’s The Crypto Mile. He pointed out applications built on Base, such as a BlackRock-linked tokenized US bond ETF, emphasizing the democratization of access to financial markets through fractionalizing tokenized financial products.
Despite FriendTech’s challenges, Base continues to support various applications contributing to Coinbase’s diverse revenue streams, including transaction fees, custodial fees, blockchain rewards, and potential investments in anti-aging technology.
InvestingPro Insights: Assessing Coinbase’s Market Dynamics
In light of FriendTech’s recent downturn and Coinbase’s Base blockchain, InvestingPro provides key insights. With Coinbase’s market cap at $22.23 billion and a P/E ratio of -29.34, reflecting its current unprofitability, InvestingPro Tips emphasize the company’s recent stock price volatility.
While Coinbase has seen a significant return over the last week and a substantial uptick in the last six months, analysts do not anticipate profitability this year. InvestingPro offers additional tips related to Coinbase’s financial performance and market trends, underlining the importance of staying informed for potential investors and market enthusiasts.
Despite FriendTech’s challenges, Coinbase’s broader potential, as outlined by Vice President Tom Duff Gordon, suggests promising prospects for the company. The InvestingPro insights reinforce the need for informed decision-making in the dynamic landscape of market trends.
