Friend.tech Faces Pressure Amidst Historic Sales Volume

A key player in the DeFi industry, Friend.tech, has established a new benchmark for the highest hourly sales volume in its history.

As a direct result of the points distribution that took place earlier this week, the buy and sell volume for Friend.tech keys skyrocketed to an all-time high of $2.399 million, which is equal to 1,466 ETH.

Because of this significant landmark, people in the community have started talking about the consequences of having to compete with such tremendous levels of selling pressure.

Because Friend.tech’s user base and total value locked (TVL) have both been growing at a rapid pace over the last week, the quantity of points that are being given out to each user has been reduced.

Even if the extension of the platform is, in general, a good sign, there has been a significant increase in the lower point yield almost immediately after the points were distributed.

The longevity of the current point distribution mechanism utilized by Friend.tech is called into doubt due to this occurrence. 

The enormous sale could discourage long-term investment in Friend.tech keys, compromising the ecosystem’s stability.

In addition, the high selling pressure may indicate that many users are looking to cash out fast, which could indicate broader concerns about the platform’s future viability.

Friend.tech may need to reexamine its points distribution mechanism to mitigate the effects of such intense selling pressure.

Adjustments could include revising the frequency or quantity of point distribution or implementing new incentives to hold instead of sell.