Journalist
Posted:
- Friend.tech witnessed a surge in activity driven by flipping, with a 29.3% increase in users and $1.23 million in fees over a day.
- Coinbase faced regulatory challenges, shutting down its services in India after 25 September.
In recent days, Friend.tech has emerged as a prominent player in the crypto scene, captivating the community’s attention.
Flipping out over friend.tech
The platform’s activity has skyrocketed, mainly driven by flipping, with Friend.Tech experiencing a remarkable 29.3% surge in users. Impressively, this influx resulted in the generation of $1.23 million in fees over a single day.
Flipping, for those uninitiated, refers to the practice of rapidly buying and selling assets in the pursuit of quick profits. It’s this intense flipping activity that has been the primary driving force behind Friend.tech’s recent surge in activity.
The repercussions of this high-intensity flipping are substantial. While it has undoubtedly brought a flurry of activity to the protocol, it’s a double-edged sword. Notably, the number of sellers has started to equal the number of buyers, signaling that flippers are the primary actors in driving the protocol’s activity.
This delicate balance between buyers and sellers holds the potential to significantly impact the protocol’s stability and performance. If sellers start to outnumber buyers, it could lead to a volatile and unpredictable environment for users and investors.
FT saw a +29.3% increase in users while generating $1.23m in fees over the past day.
Yet, the number of buyers is barely outpacing the number of sellers.
The flipping game is still strong. pic.twitter.com/z3n6dM5kRe
— Emperor Osmo
(@Flowslikeosmo) September 10, 2023
Base sees growth
Despite these concerns, Friend.tech’s popularity could spell significant benefits for the Base network.
Despite the stable number of active addresses on the Base network, activity within the protocol has surged remarkably. Over the past week, the number of transactions on the Base network has escalated from 350,000 to an impressive 507,900.
Source: Artemis
In the realm of decentralized finance (DeFi), the Base protocol experienced a surge in Total Value Locked (TVL), signifying growing confidence and participation.
However, it’s worth noting that despite these positive developments, decentralized exchange (DEX) volumes within the Base protocol have declined, warranting consideration of its potential impact on the protocol’s health.
Source: Artemis
How is Coinbase doing?
The parent company, Coinbase, stands to gain from this popularity surge as well. Coinbase’s CEO, Brian Armstrong, has unveiled plans for a next-generation stablecoin named “Flatcoin.” Additionally, Coinbase’s hopes of donating to cryptocurrency-friendly presidential candidates in 2024 may get a boost if a new SEC chairman takes the helm.
However, Coinbase’s global reach isn’t without challenges. In India, the company has decided to shut down its services. Beginning 25 September, Coinbase will cease all trading services for Indian users and advises them to withdraw their funds. Moreover, new registrations from India will no longer be accepted on the exchange.
This move comes as Coinbase faces increasing regulatory pressure in India, leading to the departure of several high-ranking executives. While Coinbase seeks opportunities on one front, it’s retreating on another due to regulatory hurdles.
