• THORChain’s liquidity fees surged 71%, breaking a four-month consolidation, driven by a recent L1 swap fee increase.
• Despite fee hikes, THORChain users remained active, with swap fees rising 5x while maintaining steady volume.

THORChain, a decentralized liquidity protocol, has recently experienced tremendous growth, particularly in weekly liquidity fees.

After over four months of consolidation, liquidity fees have finally risen above the $500k mark, reaching an astonishing $744.8k last week. This represents a 71% gain over the previous week, indicating a significant breakout.

THORChain Users Unfazed by Higher Fees as Revenue Soars

This surge is especially remarkable because it occurs within the first full week since the protocol increased its minimum Layer 1 (L1) swap cost to 0.15%. Despite the increased prices, the network users have demonstrated extraordinary resiliency.

The L1 swap traffic has remained strong, with the average daily volume remaining stable at $30.8 million despite the fee increase. This indicates that users are not discouraged by the higher charges, demonstrating the value they find in THORChain’s services.

The increase in swap costs has had a significant influence on the revenues collected by the protocol. Since the price hike, average daily swap fees have risen from $9.1k to $47.6k, a fivefold increase.

This increase is especially notable given that swap volumes have remained steady, implying that the protocol’s revenue has profited greatly from the higher costs.

Furthermore, for the first time in 2024, the network’s fees surpassed block rewards. In the previous week alone, liquidity fees accounted for 51% of total incentives distributed, highlighting the growing importance of fee revenue in the protocol’s overall financial structure.

In addition to its strong financial figures, THORChain has had significant user growth. According to CNF, THORChain’s user base increased by 41% in 2024, reaching over 510,000 unique users. This increase in users has been reflected in the protocol’s trading volume, which has topped $71 billion, with a record-breaking $3 billion in just a few weeks this year.

Meanwhile, at the time of writing, THORChain’s native token, RUNE, was trading at roughly $4.10. This represents a 4.00% increase over the previous 24 hours, placing it among the top five gainers on CoinMarketCap today.