THORChain’s RUNE decline impacts DeFi USD TVL in Q1, native deposits rise.
- RUNE price drop impacts THORChain’s DeFi TVL in Q1 2025.
- TVL shrinks from $329 million to $127 million.
- Native asset deposits and swap volumes surge.
THORChain’s DeFi total value locked (TVL) declined in Q1 2025 as RUNE prices dropped sharply.
The event highlights the correlation between RUNE’s market price and TVL, alongside rising native deposits.
RUNE Price Plunge Cuts THORChain TVL by 60%
The dramatic drop in RUNE’s value led to a 60% decrease in THORChain’s DeFi TVL in the initial quarter. The TVL fell from $329 million to $127 million.
While RUNE’s price decrease affected the protocol’s liquidity, native asset deposits, such as BTC and ETH, surged, showing confidence in the infrastructure. According to a THORChain Core Contributor, “Liquidity on the network decreased from $329 million to $127 million, while liquidity providers earned $14.41 million in fees, with 91.36% of earnings derived from swap fees and 8.64% from block rewards.”
$20 Billion Swap Volume Despite TVL Drop
The drop significantly affected RUNE, BTC, and ETH, critical assets in swap volumes and liquidity pools, emphasizing THORChain’s dependency on these currencies.
Despite the decrease in USD TVL, a $20 billion swap volume highlights the network’s ongoing user engagement and reliability of its cross-chain services. THORChain Community Steward noted, “Despite the USD value slump in TVL, the protocol processed nearly $20 billion in swap volume for the quarter, with BTC, ETH, and RUNE being the most transacted assets.”
Historical Trends Suggest Potential Recovery
Previous occurrences, such as in Q2 2024, showed similar TVL contractions due to market volatility, but usage and swap volumes rebounded soon after stabilization periods.
Expert analysis suggests that THORChain’s core protocol usage and volumes are robust against RUNE price fluctuations, and recovery is likely as market conditions stabilize.
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