ThorChain, a decentralized liquidity protocol, recently announced the successful integration of the BNB smart chain following a community vote. This milestone brings ThorChain, a cross-chain Decentralized Exchange (DEX), one step closer to fulfilling its vision of attracting a fresh wave of liquidity providers and users. The protocol already operates on various blockchains, including Cosmos (ATOM) and Ethereum (ETH), and the addition of BNB breathes new life into the project, potentially opening the doors to unprecedented growth and adoption.
However, amidst this optimistic development, it is essential to address ThorChain’s Total Value Locked (TVL). Like many projects in the DeFi ecosystem, ThorChain has witnessed a significant decline in TVL growth. Previously valued at over $500 million, the TVL now stands at a mere $98.89 million, as reported by DefiLlama. The TVL serves as a crucial indicator of a protocol’s health, reflecting the influx of deposits into the ecosystem, which enhances security and chain activity.
Unfortunately, ThorChain’s TVL has remained stagnant since April, indicating a lack of unique deposits on the protocol for an extended period. Nevertheless, ThorChain can leverage the well-established user base of BNB Chain, which boasts millions of active users. Token Terminal data reveals that 180-day daily active users are steadily increasing, reaching approximately 1.5 million. This surge signifies a growing number of unique public addresses engaging with the protocol’s decentralized application (dApp) smart contracts, a pivotal metric for any project.
Despite the partnership with BNB Chain, ThorChain’s development activity has failed to generate excitement within its community. Santiment reports a metric score of 0.024, implying a decline in development activity. This downturn suggests a lack of focus on refining the network. Conversely, an upward trend in this metric would indicate a higher count of public GitHub repositories showcasing active development efforts.
Regarding its native token RUNE, there have been no significant price fluctuations. At the time of writing, RUNE’s price is $1.08. However, the token volume has experienced a notable surge, reaching 28.39 million, pointing towards increased transactional activity.
ThorChain’s integration with the BNB smart chain holds great potential for attracting liquidity providers and users. However, the protocol’s TVL and development activity require attention to ensure sustained growth and community engagement. Meanwhile, the RUNE token has remained stable in price but exhibits heightened transactional volume, suggesting ongoing activity within the ecosystem.