Decentralized Social Media’s Rise and Dip: Coinbase’s Base Platform and Buterin’s Endorsement of New Projects

Coinbase’s Layer 2 network Base recently introduced the decentralized social media venture Friend.Tech, which saw a surge in early interest. However, within a span of just four months, the platform’s popularity has waned considerably, with indications of an ongoing decline.

Dragonfly’s Critique and the Impact on Friend.Tech

Dragonfly’s founding member Haseeb has voiced concerns over the swift decline of Friend.Tech, attributing its failure largely to a collapse in its yield curve. The platform’s fall from grace is underscored by its total value locked (TVL), which plummeted by 50% in four months from a high of $50 million to a current $26.46 million.

Ethereum Co-Founder Advocates for Enjoyable Blockchain Gaming

In response, Ethereum‘s co-founder Vitalik Buterin highlighted the pitfalls of replacing gaming fun with financial speculation. He emphasized that blockchain games should prioritize entertainment value over speculative financial mechanics. Despite the downturn, Buterin remains optimistic about the potential of decentralized social applications Farcaster and WRT Lens, which he believes could shape the future trajectory of social media in the cryptocurrency realm.

Farcaster’s Warpcast app recently updated its features to allow users more interactivity, including minting NFTs and participation in polls, leading to a 400% surge in daily active users. The network itself reported a remarkable increase in user engagement, jumping from 5,000 daily active users to over 24,700 within a week.

WRT Lens is another platform gaining traction in the decentralized social media space, enabling developers to build innovative applications. Both Farcaster and WRT Lens are being recognized for their user-centric design and developer-friendly infrastructure, showcasing a resilient segment in the decentralized application market despite Friend.Tech’s downturn.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.