THORChain Revenue Up 71% After L1 Swap Fee Increase

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by Giorgi Kostiuk

2 years ago

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  1. Significant Increase in THORChain Revenue
  2. THORChain Users' Resilience
  3. Growth in User Base and Trading Volume


    4. THORChain, a decentralized liquidity protocol, has recently shown significant growth in revenue from fees, despite maintaining a stable user activity volume.

    Significant Increase in THORChain Revenue

    After more than four months of consolidation, THORChain's fee revenue has risen above the $500k mark, reaching $744.8k last week. This represents a 71% increase over the previous week, indicating a significant breakout.

    THORChain Users' Resilience

    This increase is particularly noteworthy as it occurs during the first full week since raising the minimum Layer 1 (L1) swap fee to 0.15%. Despite the higher costs, network users have demonstrated remarkable resilience. The L1 swap traffic has remained strong, with average daily volume holding steady at $30.8 million. This indicates that users are undeterred by the higher fees, showing the value they find in THORChain's services.

    Growth in User Base and Trading Volume

    The increase in swap fees has had a significant impact on the protocol's revenues. Since the price hike, average daily swap fees grew from $9.1k to $47.6k, a fivefold increase. This is especially notable given the steady swap volumes, suggesting the protocol has greatly benefited from the higher costs. Additionally, for the first time in 2024, network fees exceeded block rewards. Last week alone, liquidity fees accounted for 51% of total incentives distributed, highlighting the growing significance of fee revenue in the protocol's overall financial structure. In addition to strong financial figures, THORChain has experienced significant user growth. According to CNF, THORChain's user base increased by 41% in 2024, reaching over 510,000 unique users. This rise in users is reflected in the protocol's trading volume, which topped $71 billion, with a record-breaking $3 billion in just a few weeks this year.

    Thus, despite the increased fees, THORChain shows consistent growth in revenue and user activity, underlining the significance and demand for its services in the market.

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