Friend.tech experienced a significant 7.8% drop in Total Value Locked (TVL) in early October, indicating slower performance. 😱 Additionally, there has been a massive key redemption on Friend.tech, and reports of ongoing sim swap attacks cast a shadow over the network.

Data analyst and researcher Tom Wang published information about the sharp drop in TVL of the new network on Dune Analytics. According to statistics from DefiLlama, the Base-based platform experienced a decrease in TVL from 29.19k ETH to 27.14k ETH on October 4th.

However, despite the decline in TVL, dry powder did not fall, indicating the possibility of users re-entering the market. 🔍

Tom Wang also highlighted the key redemption statistics. On September 14, 6.7 thousand ETH keys were redeemed. However, it is worth noting that 6.9 thousand ETH keys were issued during the same period.

Recent and ongoing issues with sim swaps are reportedly behind the sharp decline in TVL. Friend.tech has updated its system to include entry removal options, however, according to Tom Wang, the latest findings and TVL drop are mainly due to sim swap attacks.