RUNE Slump Hits THORChain’s DeFi USD TVL in Q1, But Native Deposits Surge

THORChain weathered a turbulent begin to 2025, because the Layer 1 community confronted mounting macroeconomic stress, inner community challenges, and shifting altcoin sentiment. Following a risky finish to 2024, THORChain’s native token, RUNE, suffered a pointy correction in Q1 2025 and ended up closing the quarter at $1.14, down 74.5% quarter-over-quarter (QoQ).

This considerably underperformed main digital belongings, with Bitcoin and Ethereum falling by 12.6% and 45.5%, respectively. RUNE’s market capitalization dropped 73.8% over the identical interval, because it plunged from $1.5 billion to $400.9 million, its lowest stage since mid-2022.

THORChain’s USD TVL Drops 50%

In accordance with Messari’s newest report, the droop in RUNE’s worth closely impacted THORChain’s DeFi footprint, as complete worth locked (TVL) in USD phrases fell by 50.5%, from $368.6 million to $181.1 million by the tip of the quarter. TVL had peaked at $367.7 million on January 2, earlier than sliding consistent with RUNE’s declining worth.

Regardless of the steep losses in USD phrases, native participation in THORChain’s ecosystem remained robust. In truth, RUNE-denominated TVL climbed 93.2% QoQ, after rising from 82.2 million to 158.8 million RUNE.

Messari mentioned that the determine pointed to rising person exercise and confidence within the protocol’s multichain liquidity infrastructure even amid risky pricing.

THORChain Swap Volumes Dip

Swap exercise, nonetheless, painted a extra muted image. Common each day swap quantity fell 24.4% QoQ to $68.8 million, reversing the earlier quarter’s momentum and persevering with a downward development from the $218.4 million each day common seen in early January.

A notable exception occurred on March 2, when THORChain processed a document $1.05 billion in swaps in a single day. This anomalous spike adopted the Bybit exploit, as attackers utilized the protocol to transform stolen ETH into BTC. Whereas this inflated weekly throughput figures, it didn’t meaningfully alter the broader decline in natural exercise.

On-chain knowledge additionally confirmed a drop in person engagement, with the typical variety of each day swappers declining 14.5% QoQ to 1,780. Nonetheless, utilization remained extensively distributed throughout wallets and associates, which indicated that whereas general quantity fell, the protocol’s infrastructure continued to help a broad base of members.

“The sustained participation displays the protocol’s continued function as a backend settlement layer for multichain swaps, whilst broader market volatility and RUNE’s worth drawdown weighed on person exercise.”