Can ThorChain’s integration of BNB Chain help?
- ThorChain got the vote of confidence to enable BNB Chain.
- The increase in BNB Chain’s users would not automatically salvage the tumbling ThorChain TVL.
Decentralized liquidity protocol ThorChain [RUNE] announced that its community had passed the vote to integrate the BNB smart chain. As a cross-chain Decentralized Exchange (DEX), ThorChain operates on several blockchains including but not limited to Cosmos [ATOM] and Ethereum [ETH].
The nodes have passed the vote to enable BNB Smart chain – @BNBCHAIN
Onwards ⚡️ pic.twitter.com/82rCW4BagX
— THORChain (@THORChain) June 5, 2023
Realistic or not, here’s ThorChain’s market cap in BNB terms
With this new integration, ThorChain’s promise of attracting a new wave of liquidity providers and users could be a step closer to reality.
While BNB’s breath of life into the project might usher in a new era of growth and adoption for the protocol, ThorChain’s Total Value Lcoked (TVL) may need to be looked into.
No life on the chain
Like most projects in the DeFi ecosystem, ThorChain’s TVL had severely decreased in terms of growth. For a metric that was once worth over $500 million, ThorChain’s TVL was down to $98.89 million, DefiLlama revealed.
Typically, the TVL is an indicator of a protocol’s health. When the metric increase, it implies that more deposits are entering into the ecosystem. Thus, this helps the protocol’s security and the activity of chains under it.
But for ThorChain, the TVL has hovered around the same flatlined region since April. Therefore, this means that unique deposits on the protocol have been stagnant for a while.
Assessing the place of advantage
However, ThorChain has the opportunity to leverage BNB Chain’s already-established cohort. For one, BNB Chain boasts of having millions of active users.
According to Token Terminal, the 180-day daily active users have been growing. And at press time, the number was around 1.5 million.
As a crucial metric of any project, the surge in daily active users means that more unique public addresses were interacting with the decentralized Application (dApp) smart contracts.
Despite the partnership with BNB Chain, ThorChain’s development activity remains one that hasn’t excited its community. At the time of writing, Santiment revealed that the metric was down to 0.024.
How much are 1,10,100 RUNEs worth today?
A plunge in the development activity suggested that contrition toward polishing the network subdued. Conversely, if the metric had increased, then it would mean that there was a high count of public GitHub repositories in place.
For its token RUNE, not much has happened as per its price action. As of this writing, the RUNE price was $1.08. However, the token volume surged to 28.39 million, indicating an increase in transactions.