THORChain Flips PancakeSwap as #2 DEX with 50% Gains

THORChain trading volume surges as more users recognize its unique value proposition.

Thorchain at the peak of the mountain.
Created by Kornelija Poderskytė from DailyCoin
  • Trading volume on the THORChain platform surges.
  • THORChain offers users a unique DEX value proposition.
  • The RUNE token has recorded a yearly high.

Decentralized exchanges (DEXs) offer a way to swap crypto tokens without intermediaries. By directly facilitating decentralized swaps on-chain, DEXs avoid the pitfalls of centralized exchanges (CEXs) like withdrawal limits, KYC, and jurisdictional exclusion. As crypto marches mainstream, DEXs are increasingly grabbing market share from CEXs as investors embrace their decentralized ethos and self-custody.

THORChain is rapidly emerging as a top DEX contender through its slick cross-chain capabilities, including swapping Bitcoin, Ethereum, BNB Chain, Avalanche, Cosmos, Dogecoin, Bitcoin Cash, and Litecoin. In recognition of THORChain’s value proposition, trading volume on the platform has rocketed while its native RUNE token is also surging.  

THORChain Volume On a Tear

THORChain has experienced a surge in trading volume, surpassing PancakeSwap to become the second most popular DEX in terms of volume traded over the last 24 hours. During this time frame, THORChain turned over $334.3 million, surpassing PancakeSwap’s $286.8 million, according to DeFiLlama data.

Sponsored

Similarly, zooming out to the past 7 days, THORChain’s trading volume has skyrocketed over 102% versus 34% for Uniswap and 15.5% for PancakeSwap. However, the total value locked (TVL) on THORChain is $264 million, which is significantly below that of Uniswap and Pancakeswap at $3.6 billion and $1.5 billion, respectively.

Top 3 DEXs by volume per DeFi Llama.
DEX volume stats per DeFi Llama

Amid booming trading volume, THORChain’s RUNE token saw a 51% spike over the last 24 hours to $5.16 at the time of writing. Moreover, RUNE hit a yearly high of o $5.39 on November 12, marking a 79-week high. 

RUNE began trending higher after reaching a local bottom of $1.51 on October 19. Since then, the token has posted a remarkable 240% jump in its market price.

RUNEUSDT daily chart per Trading View showing a surge in RUNE from mid-October 2023.
RUNEUSDT daily chart on Trading View

Despite RUNE’s strong performance since mid-October, the token is still 75% down on its all-time high price of $20.87, achieved on May 19, 2021. Nonetheless, THORChain offers users a unique value proposition in being the only large-scale market to swap Bitcoin without an intermediary.

Swap Unwrapped Bitcoin

THORChain offers a unique value proposition to crypto traders looking for decentralized swaps. Unlike other leading DEXs such as Uniswap, which only support wrapped or synthetic versions of Bitcoin, THORChain allows direct swaps between native BTC and other cryptocurrencies without relying on intermediaries or custodial exchanges. This eliminates the need for tokenized derivatives, enabling users to trade real Bitcoin seamlessly across different blockchains.

Sponsored

Similar to other platforms, THORChain offers opportunities for yield generation by liquidity provision and lending. However, THORChain lending differs from other offerings in that users can lend their BTC and ETH to the protocol and borrow stablecoin debt with no interest, liquidations, or expiration date. 

On the Flipside

  • Although THORChain states it has built-in safeguards to minimize lending risk to users, the lending protocol is unproven over a long period of time. 
  • Recent regulatory pushback against ThorSwap, a DEX based on THORChain, underscores that decentralized exchanges are not immune to regulatory scrutiny.
  • DeFiLlama DEX data excludes dYdX, which had a trading volume of $1.2 billion over the last 24 hours, surpassing Uniswap’s volume

Why This Matters

The recent surge in THORChain’s trading activity has brought more visibility to the decentralized finance sector. More importantly, it has introduced much-needed competition in the DEX space, which is dominated by Ethereum-based offerings.

Learn more about THORSwap’s run-in with regulators here:
THORSwap Token Swaps Return, But at What Cost?

Discover the latest with Reddit mods’ attempts to revive the MOON token here: 
Reddit Mods Await Contract Verdict on Reviving MOON

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.