The entire volume of trades on Friend.tech over the weekend surpassed $10 million, which is a record high for the past few weeks. Colin Wu, an industry analyst, speculates that this might be an exit behaviour, though. Due to key redemption, Ethereum is being removed from the blockchain more quickly than it is being created, according to data from Dune Analytics.
Over the weekend, more than 5,000 ETH were removed from Friend.tech; this is the highest withdrawal since October 24, when 4,380 ETH were removed in a single day. In addition, over the weekend, the platform’s total value locked (TVL) decreased by 21% to 17,100 ETH, or $33.6 million, the lowest amount since mid-September.
Since late October, there has also been essentially no increase in the number of new users on the platform. Although there have been 839,190 users overall, according to Dune Analytics, activity has decreased overall. Scams have affected Friend.tech, as scammers utilise phishing and SIM-swap assaults to target its consumers. The team claimed to have found and deleted 600,000 accounts over the weekend that were thought to be bots, but it also looks like real people may have been shut out.
Well-known cryptocurrency influencers have complained about being locked out of the platform; one user claims to have lost over 10 ETH and the platform is refusing to assist in getting it back. Additionally, analyst Alex Krüger said that he was locked out of Friend.tech and that the staff “refused to help.” The excitement surrounding Friend.tech might be fading as users start to lose interest in the platform and start taking their funds out.