Friend.tech has experienced a significant decline in its Total Value Locked (TVL), marking a substantial single-day drop of 7.8% in early October, indicating a notable downturn in performance. This decline was highlighted by data analyst Tom Wan through a Twitter thread, with the network losing around 2.3K Ethereum in a single day, as per Dune analytics.
The decrease in TVL began on October 3 and continued through October 4, ultimately reaching 26.48K ETH by early October 6, down from 29.19K ETH. It's worth noting that the most significant drop occurred on October 4, with a reported 7.8% decrease.
Despite the decrease in TVL, there was no significant reduction in idle capital, which remained stable at 10.34K ETH (approximately $17 million) on October 4. Additionally, reports suggest that users still have the potential to re-enter the market, as the amount of available funds (dry powder) did not decrease significantly. Moreover, there are concerns regarding network security due to ongoing sim swap attacks.