He says we're just friends but doesn't act like it?

When you first asked him about it, it may have caught him off guard and was surprised you said something. After he's thought about it and had given it time He maybe would want to do it (date). Bring up and talk to him about what your friends were saying.

Try to remember not to let words get the best of your survival instinct
focus more on the red.

I'd say he likes you and enjoys your company a lot, but it's hard to say if he sees you as more. Unless you and he have spent a romantic moment or shared an intimate moment, there's no way to tell unless you ask him what he's thinking or feeling. I always say that "true" friends will tell you the truth no matter if it hurts you or helps you, and it is up to you as a "true" friend to respect whatever comes out of their mouth whether it hurts you or helps you. Of course, you know that the strength of a good relationship stems from a "honesty and respect".

I wouldn't think too much about it. If he haven't ask you to be his girlfriend then you are still his friend. Same thing happened to me, one of my guy friend, he would flirt with me, acts jealous and also make it seems like he and I was dating but later to find out he always think of me as a friend because he was with another girl too. IF you really want to know, just ask him about it.