I actually went through a similar "phase" a few years back. I had a group of friends who all behaved that way, and they were pretty much the only people I hung out with. At a certain point though, like you, I realized that I didn't really like constantly throwing (and receiving) jabs, especially with people who were supposed to be friends. Even if the intent wasn't to actually be shitty to one another, it started feeling like it was.

So I stopped interacting with them almost altogether, and started meeting my current group of friends who are all way more relaxed and genuine. Not saying that you have to cut this other friend out of your life, but it may help you to try to expand your social circle.