Updated on:12/09/2025 05:55 PM 
The world of decentralized social media has witnessed a dramatic storyline with Friend Tech, a blockchain-based social protocol that captured global attention in 2023 but has since experienced a remarkable decline in user adoption and engagement.
According to data analysis from CryptoSlate, utilizing Dune Analytics information compiled by 21.co, Friend Tech is facing significant challenges in maintaining its user base. The platform's ability to attract new cryptocurrency enthusiasts has diminished substantially, with existing users showing decreased activity levels. On January 28, the platform recorded only 19 new users engaging in transactions, a stark contrast to its peak performance in September when it boasted over 70,000 active participants in the decentralized social media space.
Further insights from Cryptokoryo's dashboard reveal the extent of this downturn. On the same date in January, Friend Tech documented merely 5,544 transactions across its social trading platform, representing a staggering 99% reduction from its peak transaction volume of nearly 540,000, signaling a major setback for blockchain social networks.
The financial metrics paint an even more concerning picture for this crypto social platform. DeFillama's data indicates a consistent negative capital flow throughout January, with the exception of January 16 when $313,000 entered the ecosystem. On other days, more than $5 million flowed out, significantly reducing the total value of assets locked on the platform to just $30 million.
Additionally, the network's fee generation has plummeted from a daily average of nearly $1 million to approximately $50,000 in the most recent two-day period, highlighting the challenges facing blockchain-based social media platforms in maintaining sustainable revenue models.
Several factors have contributed to Friend Tech's declining performance in the competitive cryptocurrency landscape. Critical issues emerged when multiple users experienced sim-swap attacks due to insufficient security measures on the platform. Reports indicate that at least $20 million in user assets remained vulnerable to these security breaches, raising serious concerns about the platform's ability to protect its community in the decentralized social media ecosystem.
Although the development team implemented security improvements following these incidents, the damage had already been done, revealing challenges in addressing vulnerabilities and implementing necessary policies for a rapidly expanding user base in the blockchain social media sector.
The platform's initial success also inspired numerous competitors across different blockchain networks, including Avalanche's Stars Arena. However, data from DeFillama suggests that these similar decentralized social platforms are also struggling to achieve widespread adoption and consistent user engagement in the current market conditions.
Teng Yan, Head of NFT Research at Delphi Digital, characterized Friend Tech's situation as the "biggest lowlight" in the blockchain social media space over the past year. While acknowledging the project's potential to bring cryptocurrency concepts to mainstream audiences, Yan criticized the execution and implementation strategies employed by the development team.
Friend Tech introduced a novel approach to monetizing social influence within the cryptocurrency community, allowing users to purchase and sell digital "keys." These keys provided buyers with the ability to send private messages to sellers, creating a new economic model for social interactions on the blockchain.
This innovative approach attracted numerous high-profile individuals from both the cryptocurrency industry and entertainment sector, who utilized Friend Tech to connect with their communities. The platform significantly contributed to transaction volumes on Base, the layer-2 network on which it was built, demonstrating the potential for blockchain technology to revolutionize social media interactions.
Despite this promising start, the blockchain social network experienced a rapid decline, losing 95% of its activity within the first month of its launch. A brief resurgence occurred in September, with daily trading volumes approaching $10 million. At its peak, the protocol maintained a TVL exceeding 30,000 ETH (approximately $50 million), temporarily outperforming established decentralized finance platforms like Uniswap and even the Bitcoin network in terms of fee generation.
The trajectory of Friend Tech serves as a valuable case study in the challenges of building sustainable blockchain-based social platforms, highlighting the difficulties of maintaining user engagement and security in the rapidly evolving cryptocurrency landscape.
