By Alexander Maine
THORChain, a decentralized crypto trading protocol known for its cross-chain swap capabilities, has ascended to the position of the third-largest decentralized exchange (DEX) in terms of trading volume over the past week. With an impressive $1.32 billion in trading volume, THORChain trails only Uniswap ($10.85 billion) and PancakeSwap ($2.77 billion), according to data from DefiLlama.
THORChain’s trading volume has remained strong, with $334.3 million traded in the past 24 hours alone, eclipsing PancakeSwap by nearly $50 million. Accompanying the surge in trading volume has been the remarkable growth of THORChain’s native token, Rune, which has witnessed a 51% increase in the past week and an astounding 200% growth in the last 30 days, as reported by CoinGecko. At the time of writing, Rune hovers around $5.16, maintaining a steady value over the past day.
Multichain Operability and High Yields
THORChain operates as a multichain version of Uniswap, granting users the ability to exchange native Bitcoin for Ether (ETH). The decentralized exchange powered by the THORChain protocol is aptly named THORSwap. One of the key factors propelling THORChain’s popularity is its high yield, offering an average annual percentage rate (APR) of nearly 44%. Some liquidity pools on THORChain, such as pairings of Bitcoin and Rune, even yield APRs exceeding 353%.
Caught the Eye of Bitcoin Advocate Erik Voorhees
THORChain’s innovative approach has not gone unnoticed. Bitcoin advocate Erik Voorhees has lauded its significance for the Bitcoin community, emphasizing its ability to facilitate Bitcoin trading at scale without intermediaries, thus aligning perfectly with the core tenets of Bitcoin. Voorhees has stated: “Principled Bitcoiners should familiarize themselves with THORChain. It is the only market to trade Bitcoin at scale without an intermediary… which is the entire point of Bitcoin.”
Genesis and Founding Team
The genesis of the THORChain project traces back to a team of developers who participated in the Binance Dexathon in 2018. While the majority of the project’s founding developers have opted for anonymity, their pioneering work in the field of decentralized asset settlement has drawn substantial attention and support from the cryptocurrency community.
Surge in Trading Volumes Across DeFi
THORChain’s growth is not an isolated phenomenon. Spot trading volumes on centralized crypto exchanges also experienced a significant uptick last month, marking the highest month-on-month increase since early 2021. As reported, the total spot trading volume climbed by 87.2% to $632 billion in October, constituting the highest monthly volume recorded since March 2023. This surge represents the most substantial MoM rise in spot trading volumes since January 2021. According to CCData, the resurgence of volatility and bullish price action have fueled a renewed interest in digital asset markets, with the potential approval of a spot Bitcoin ETF on the horizon. Derivatives trading volumes on centralized exchanges also witnessed a significant increase, rising by 44.4% to $1.94 trillion, marking the highest monthly derivatives volume since June 2023.
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