ThorChain, a decentralized liquidity protocol, announced record transaction volume on October 5, rising to $355 million in one day, an all-time high.
This noteworthy event is part of a larger trend where cumulative transaction volume over the past five days has surpassed the $1 billion mark.
Record-breaking ThorChain volumes
According to the analysisThe rise in transaction volume coincided with a rise in the number of swaps connected to the network. On October 5, when the transaction volume approached $355 million, the number of network-related swaps was 115,630.
This was an upward spike from the previous day, when the number of swaps reached 61,877, and the total volume was just $170.8 million.
The daily change in transaction volume from October 4 to October 5 was a massive 107.6% increase.
A look at the charts indicates an upward trajectory in transaction volumes since September 29. While the network only reported about $34.45 million in total volume on September 29, the value rose to $60.14 million the next day and $166.4 by October 1.
Later, on October 2, the total transaction volume achieved a new high of $197.33 million before observing slight declines at $173.84 million and $170.84 million between October 3 and 4, respectively. From October 1 to 5, the cumulative transaction volume reached $1.063 billion.
As the volume of transactions seemingly rose, the volume of profits associated with the network also rose. On October 4, cash gains were approximately $109K and bond profits were $66.7K, a significant decline from the highs recorded on October 2. However, on October 5, cash and bond gains amounted to $164.35 thousand. And $101.96 thousand, respectively.
According to analysts, the sudden spike in volume can be linked to a recent increase in hacking activities, especially since cross-chain Bitcoin transactions are the main contributor to the massive spike in volume.
To address these negative events, ThorSwap, a ThorChain product, has reportedly paused the platform, shifting into maintenance mode.
Speaking about the developments, the ThorSwap developer tweeted;
“Yesterday, after careful evaluation of the situation and consultation with advisors, legal counsel and law enforcement, the decision was made to temporarily move the THORSwap interface into maintenance mode. This action was taken to quickly mitigate any further potential illicit activity.
One pressing and persistent concern has recently come to light: the potential movement of illicit funds through THORChain, and specifically, THORSwap. Such activities have no place on the THORSwap platform, and THORSwap stands firm against any and all criminals…
— THORSwap #BetterThanCEX (@THORSwap) October 6, 2023
The tweet indicated that ThorSwap will remain in this mode until developers find a more permanent solution to implement and enhance the ongoing security and integrity of the platform.
ThorChain’s rune price action
The ThorChain network’s native token, Rune, has been trading in the red for most of the past 24 hours. Starting the day at 2,048, the token rose to a high of $2.1 before falling to a low of around $1.93. Reports indicate that the token lost around 2.51% of its value in the 24 hours from October 5 to the time of reporting.
However, it’s been a very different story in the past seven days, with Rune trading in the green. Starting at US$1.92 on September 29, the value of the rune rose to a high of US$2.23 on October 2 before falling to a low of US$1.88 on October 4.
The charts indicate that the asset has mainly shown sideways price movement, especially in the past five days. However, last week, the value of the Rhone rose by about 3.02%.
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