Friend.tech's Total Value Locked (TVL) has experienced a significant decline recently. Notably, Friend.tech's TVL dropped by as much as 7.8% in just one day at the beginning of October, marking a record single-day decrease.

Analyst Tom Wan pointed out this decline in Friend.tech's TVL using data from Dune Analytics. On October 4th, the TVL of Friend.tech decreased by 2.3 thousand Ethereum.

According to DefiLlama, the TVL on the Base platform dropped from 29.19K ETH to 27.14K ETH on October 4th. This was part of a TVL decrease trend that began on October 1st, with a decrease of approximately 1.30K ETH. By the beginning of October 6th, TVL had further decreased to 26.48K ETH.

Notably, the most significant TVL decrease occurred on October 4th, with a decrease of approximately 7.8%, as reported by Tom Wan. Despite the TVL decline, the available liquidity remained stable at 10.34K ETH (around 17 million USD) on October 4th, as conversion keys had been entirely withdrawn from the network.

Rapid Increase in Activity Tom Wan highlighted statistics related to key conversions. September 14th was considered the peak, with a notable 6.7K ETH worth of keys being converted. It's worth noting that 6.9K ETH worth of keys were created during the same period.

On October 4th, the number of key redemptions saw a significant spike, reaching a new high of about 2.1 thousand ETH, valued at 3.5 million USD, as reported in this topic.

When users convert their keys, they can either hold Ethereum within the application or completely withdraw from the system. On October 4th, key converters chose to withdraw funds from their accounts, leading to no increase in available liquidity within the network.

Chang, one of the largest keyholders, was among those who repurchased keys. According to the report, Chang sold 43 of his keys, earning a profit of approximately 140 ETH ($232K).

The decrease in demand led to a significant decrease in key prices, dropping from 3.89 ETH per key to 2.64 ETH per key.

However, Chang's profits were still held in his FT account. He spent 77 ETH to mint new keys on October 4th, with 39 ETH of that used to repurchase 15 of his keys at a lower price of 2.27 ETH each.