The Death Spiral of SocialFi: Why Do All Creator Token Endings Look the Same

CoinNetwork · 2026-01-02T15:54:26+00:00

Social finance platforms are experiencing a collapse cycle, with Friend.tech's tokens plummeting and daily active users sharply decreasing. Despite Farcaster and Lens Protocol securing funding, active users have significantly declined. Studies show that 92% of users would quickly abandon the platform, reflecting issues with user experience and token business models.

CoinNetwork

2026-01-02 15:54:26

Abstract generation in progress

Social finance platforms are facing an inevitable collapse cycle, and recent data confirms this. Friend.tech’s FRIEND token trading price is around $0.04, down 99% from its peak, and by early 2026, its daily active users are fewer than 250. Despite Farcaster raising $150 million, its daily active users have dropped to between 40,000 and 60,000, with only about 4,360 accounts being truly active. Lens Protocol’s daily active users also plummeted from a peak of 42,000 to approximately 8,000. A study in 2023 found that 92% of social finance users would abandon the platform within 30 days. Reporter Nick Shirley ( launched the Maker Coin on the Base platform at the end of 2025, with a market cap reaching $9 million, but it subsequently plummeted 67%, illustrating the ongoing pattern of collapse following speculative frenzy, highlighting unresolved issues in user experience, network effects, and unsustainable token-based business models.

FRIEND10,77%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.