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Can ThorChain’s integration of BNB Chain help?

2min Read

Curious if the DEX protocol integration with BNB would yield any effect? Well, here’s what to know.

ThorChain news

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  • 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].

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.

ThorChain TVL

Source: DefiLlama

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. 

BNB Chain active users

Source: Token Terminal

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.

ThorChain development activity and RUNE volume

Source: Santiment


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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