THORChain Revenue Up 71% After L1 Swap Fee Increase

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  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.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Polygon Labs Launches New Payment Controls for AI-Agent Transactions

Polygon Labs has launched new payment controls for AI-agent transactions, allowing automated agents to make purchases within defined parameters while managing associated risks.

user avatarRajesh Kumar

Polygon Labs Highlights Risks in Automated Payment Systems

Polygon Labs highlights the complexities and risks in automated payment systems, emphasizing the need for audit trails and compliance measures.

user avatarJesper Sørensen

Tokenized Asset Compliance Faces Practical Challenges

The announcement from Further Asset Management highlights significant challenges in the practical implementation and legal interpretation of compliance rules for tokenized assets.

user avatarLucas Weissmann

Chainlink Introduces CustodySync to Enhance Institutional Lending

Chainlink has launched CustodySync in collaboration with Anchorage Digital to synchronize information between custodians and decentralized lending protocols, facilitating institutional borrowing while ensuring compliance with custody regulations.

user avatarFilippo Romano

Uniswap Developer Analytics: A New Tool for Enhanced User Engagement

Uniswap Labs has launched Developer Analytics, a new feature for developers to analyze requests, error counts, and transaction volumes, aimed at improving user retention and overall developer experience.

user avatarEmily Carter

Uniswap Labs Introduces Developer Analytics to Enhance Dashboard Experience

Uniswap Labs has launched Developer Analytics on October 28, 2023, adding new reporting features to its developer dashboard to enhance the developer experience.

user avatarTomas Novak

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.