{"id":571167,"date":"2024-08-30T23:33:41","date_gmt":"2024-08-30T23:33:41","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=571167"},"modified":"2024-08-30T23:33:41","modified_gmt":"2024-08-30T23:33:41","slug":"thorchains-liquidity-fees-surge-by-71-amidst-fee-increases-rune-shows-positive-momentum","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/thorchains-liquidity-fees-surge-by-71-amidst-fee-increases-rune-shows-positive-momentum","title":{"rendered":"THORChain’s Liquidity Fees Surge by 71% Amidst Fee Increases, RUNE Shows Positive Momentum"},"content":{"rendered":"

THORChain, a decentralized<\/a> liquidity protocol, has recently witnessed a substantial increase in its weekly liquidity fees. This notable growth follows a prolonged period of over four months where fees remained relatively stagnant. However, last week saw liquidity fees break through the $500,000 barrier, reaching an impressive $744,800. This figure marks a 71% rise compared to the previous week, signaling a significant breakthrough for the protocol.<\/p>\n

Users Continue to Engage Despite Fee Increases<\/h2>\n

One of the most remarkable aspects of this surge is that it occurred during the first complete week after the protocol implemented a hike in its minimum Layer 1 (L1) swap cost, raising it to 0.15%. Even with this increase in fees, the users of THORChain have shown remarkable resilience, continuing to engage actively with the platform. The average daily volume for L1 swaps remained stable at $30.8 million, despite the heightened costs. This stability underscores the value that users place on THORChain’s services<\/a>, as they appear undeterred by the higher charges.<\/p>\n

Significant Revenue Growth Driven by Fee Increase<\/h2>\n

The increase in swap costs has had a profound impact on the revenue generated by the protocol. Since the implementation of the fee hike, the average daily swap fees have surged from $9,100 to $47,600, representing a fivefold increase. What makes this growth particularly noteworthy is that it occurred even though swap volumes have remained steady, indicating that the protocol has significantly benefited from the higher fees.<\/a><\/p>\n

Furthermore, for the first time in 2024, the fees generated by the network exceeded the block rewards distributed. In the last week alone, liquidity fees accounted for 51% of the total incentives distributed by the protocol. This shift highlights the growing significance of fee revenue in THORChain’s overall financial structure.<\/p>\n