$1.1 Million TVL Vanishes from Friend.tech Amid Base Network Woes
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Friend.tech experienced a significant drop in Total Value Locked (TVL) as over $1 million flowed out in less than 24 hours. The platform, built on the Coinbase Layer-2 Base network, reversed its plans to migrate to its own network. This decision, combined with overall market downturns and competition from decentralized social media peer Farcaster, led to the decline. TVL, which represents the total value of assets locked in a protocol, serves as a critical measure of user confidence and asset commitment. Ethereum co-founder Vitalik Buterin had previously criticized Friend.tech for focusing on financial speculation rather than genuine user engagement. The Base network, while popular for SocialFi apps, has faced its own set of challenges, including security concerns about its meme coin projects.
Source: beincrypto.com ↗
