THORChain’s DeFi USD TVL Declines in Q1 Amid RUNE Slump, Native Deposits on the Rise
THORChain experienced a turbulent start to 2025 as macroeconomic headwinds, internal network issues, and a broader shift in altcoin sentiment pressured the Layer 1 protocol. Its native asset, RUNE, posted a steep 74.5% quarter-over-quarter (QoQ) decline, closing Q1 at $1.14 following a volatile end to 2024. This downturn significantly underperformed both Bitcoin (-12.6%) and Ethereum (-45.5%). RUNE’s market capitalization dropped sharply as well — from $1.5 billion to just $400.9 million, marking its lowest level since mid-2022.
As a result, THORChain’s DeFi USD TVL declined by 50.5% in Q1, falling from $368.6 million to $181.1 million, according to Messari. The protocol’s TVL had peaked at $367.7 million on January 2 before steadily eroding in step with RUNE’s price drop.
However, native deposits on THORChain surged despite the declining dollar value. RUNE-denominated TVL jumped 93.2% QoQ, rising from 82.2 million to 158.8 million RUNE. This suggests robust on-chain activity and growing user confidence in THORChain’s multichain liquidity protocol, even in the face of market turbulence.
Swap Volumes and User Activity Dip
While native engagement remained strong, swap activity showed signs of slowing. Average daily swap volume decreased 24.4% QoQ to $68.8 million, reversing gains from the previous quarter. A temporary exception occurred on March 2, when the protocol processed over $1 billion in swaps in a single day — largely driven by the Bybit exploit, during which attackers converted stolen ETH into BTC via THORChain. However, this spike did not reflect a broader trend of increased usage.
Daily active swappers also declined 14.5% QoQ to 1,780, though engagement remained distributed across numerous wallets and affiliates. This indicates that while aggregate activity dipped, THORChain’s infrastructure continued to serve a wide and decentralized user base.
Despite falling USD-denominated metrics, THORChain’s rising native deposits and sustained participation underline its resilience as a multichain settlement layer amid a challenging quarter.
