- The fees generated by Friend.tech surpassed Bitcoin by almost $3 million.
- Activity on the Bitcoin network decreased.
According to TokenTerminal Bitcoin [BTC] transaction fees were no match for the decentralized social network Friend.tech. Token’s Terminal data shows that Friend.tech fees were worth $26.8 million in the last 30 days. Bitcoin, on the other hand, earned fees worth $24.2 million.
@friendtech just surpassed bitcoin in 30d costs pic.twitter.com/gPLwfXLOyQ
— Tokenterminal (@tokenterminal) October 5, 2023
Is access better than mining?
The difference in fees between the social network and the largest cryptocurrency by market value highlights the increasing adoption of the platform where users can buy shares or keys from other users. On the Friend.tech platform, users who register get their own account channeland participants must own at least one share or key to access a given user’s channels.
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So when someone buys a channel key, 5% of the cost goes to Friend.tech. Then another 5% goes to the channel owner. Moreover, an increase in the number of stock purchases makes costs more expensive. So users pay more to access a ‘trending’ channel while paying more.
This is a completely different method than the way Bitcoin generates fees. Normally, Bitcoin transaction fees are determined by the data volume of transactions and the demand for block space.
In this case, miners receive transactions reimbursements when a new block is validated, which supports mining profitability. For the Lightning Network, transaction fees are set by node operators and can vary from node to node.
Friend.tech’s fee increase has also had a positive impact on costs gain. With a total of 323,262 unique merchants, the network’s revenue has increased to $19.39 million.
Source: Dune Analytics
Recently, Friend.tech activity has also been increasing affected the Total Value Locked (TVL) when it crossed the $50 million mark. The TVL is a measure of the confidence that users have in a protocol. This is done by evaluating the smart contract deposits that go into the said protocol.
Bitcoin’s unconfirmed transaction is declining
Therefore, the increase in the network protocol means that the trust in the interaction on Friend.tech has increased. Meanwhile, Bitcoin’s inability to override Friend.tech’s fees could be related to the activity on its mempool.
A mempool is also known as a portmanteau of memory and pool. As a waiting room for transactions that have not yet been included in a block, the mempool is used to store information about unconfirmed transactions.
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According to Glassnode, Bitcoin is total cost of mempool fell to 0.68. This means that there is not a long list of unconfirmed transactions on the blockchain. This could also be a sign of low network activity on Bitcoin.
Source: Glassnode
