- Friend.tech surpassed NFTs in daily trading volume for the third time, with a total of $12.3 million on September 9.
- On the same day, Friend.tech experienced a surge in activity, witnessing an inflow of 4.06k ETH, marking a new high in daily inflows.
- The NFT market is facing challenges as collectors downsize their collections and the SEC increases regulatory scrutiny.
Galaxy Research has shared that Friend.tech’s daily trading volume on Ethereum reached $12.3 million on September 9. This is considered the third time that Friend.tech’s daily trading volume has exceeded NFT’s trading volume on Ethereum. The NFT’s daily trading volume on that day was $9.2 million.
.@friendtech keys daily trading volume exceeded that of total NFT trading volume on Ethereum for the 3rd time since the decentralized social media app's launch. On Sept 9, daily trading volume for https://t.co/ZhbqCaclRK keys was $12.3m, while daily NFT trading volume was $9.2m. pic.twitter.com/eOMtJNfVN8— Galaxy Research (@glxyresearch) September 12, 2023
On the same day, Friend.tech witnessed an inflow of 4.06k ETH, which counted as its new high in a single day. The overall total locked value exceeded 11,000 ETH, and $1.2 million was generated in fees.
The first instance was on August 20, when Friend.tech’s daily trading volume was $14.1 million, and the NFT was $12.4 million. The second was on August 21, when Friend.tech surpassed NFTs with a daily trading volume of $16.9 million, while the NFTs volume was $11.2 million.
Friend.tech is one of the latest decentralized social networks and a rapidly emerging platform in the crypto space at the moment. The platform allows users to purchase “keys,” which can grant them access to friends’ and influencers’ chat rooms and exclusive content.
Reportedly, the NFT market is facing some challenges as some NFT collectors have been downsizing their collections to avoid heavy losses. Between January 2022 and July 2023, NFT trading volume dropped by over 81%, and monthly sales decreased by 61%.
Recently, the U.S. Securities and Exchange Commission (SEC) announced its first enforcement actions against NFTs, which, according to the report, has influenced market sentiments towards NFTs.
On September 5, Laura Shin, host of the Unchained Podcast, talked with legal expert J.W. Verret and tax specialist Jason Schwartz, and they discussed if Friend.tech’s keys would be qualified as a security. The podcast episode focused on whether the Howey Test could be applied to Friend.tech’s keys and if they would be the SEC’s next target.
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