$1.8 billion moved to Ronin DEX from Ethereum in 2 weeks
In the first two weeks since Sky Mavis, the team behind Axie Infinity (AXS), launched Katana, $1.8 billion in net assets bridged from Ethereum (ETH) to Ronin (RON), a recent DappRadar report revealed.
According to the data acquisition and analysis company that keeps tabs on thousands of dapps across multiple blockchains, in this short timeframe, the first decentralized exchange (DEX) running fully on Ronin has reached $1.3 billion in Total Value Locked (TVL).
Meanwhile, Ronin, the Ethereum-linked sidechain made specifically for Axie Infinity, reached a new high, surpassing 1.1 million daily active addresses.
Axie became known as the spearhead of the play-to-earn movement and, according to DappRadar’s data, attracts more than 2 million daily active players.
Katana’s deployment increased the liquidity of all assets in the ecosystem, as the DEX currently allows users to swap between four tokens, featuring three liquidity pools, two of which enable users to farm Ronin’s native and governance token, RON.
Despite Ronin Bridge being fully functioning since May, the launch of Katana unleashed the value flow.
During the last 30-day period, the bridge recorded over $7,5 billion in volume and has surfaced as the most used solution to move assets out of Ethereum, outpacing Avalanche and Polygon bridges, amongst others.
During this timeframe, AXS and ETH represented over 57% of the total assets bridged from Ethereum.
“Ronin has shown the industry how interoperability can be executed successfully, and Ethereum gas prices shooting through the roof to impact a category as popular as gaming has highlighted just how important this is,” Modesta Masoit, Finance Director at DappRadar, commented on the findings of the report.
Meanwhile, the Ethereum-linked sidechain reached a new milestone, breaking through 1,1 million daily active addresses, reported journalist Colin Wu, citing Nansen’s data.
According to nansen, the daily active address of Axie Infinity’s Ronin sidechain has recently reached a new high, breaking through 1.1 million daily active addresses. pic.twitter.com/bpA4Q7Xa2n
— Wu Blockchain (@WuBlockchain) November 21, 2021
Net flows of ETH, AXS, and SLP
Since Katana’s launch, Ronin has received more than 182,600 net ETH, equating to roughly $836,38 million in net value.
“From the value incoming to Ronin in the form of ETH, 73% is locked within Katana liquidity pools, providing the dapp with over $615 million in ETH liquidity,” added the report, noting that prior to Katana’s launch, the main use of ETH within Ronin was to purchase Axie NFTs.
The report revealed a similar story with net flow of AXS. Within two weeks following Katana’s launch, 7,74 million net AXS, worth approximately $1,1 billion, have been bridged to Ronin.
DappRadar noted that $363,7 million worth of AXS is locked in Katana to farm RON, accounting for almost 33% of the recorded AXS net flow since the DEX’s launch.
In the case of the game’s main currency, Smooth Love Potion (SLP), which can be obtained by completing adventure tasks or winning PvP battles, Ronin recorded $78,44 million net loss, as roughly 887 million SLP moved to Ethereum.
Players use SLP to cash out Axie Infinity’s play-to-earn rewards, by converting the tokens on centralized exchanges (CEXes), and “it is natural to see SLP net flows on a more negative side,” explained the report, adding that the price of SLP appreciated by 90% since Katana’s deployment.
From November 3 to November 6, the AXS supply within Sushiswap decreased 82%, “hindering the token’s liquidity that went from $5,5 million worth of AXS to a mere $320,000,” added DappRadar, revealing how Katana drained AXS liquidity from the Ethereum DEX.
“Maximalists may be screaming about security, but everyday users are screaming about gas fees. And while we can’t necessarily assume that players bridging their assets into Ronin trust the network, it is certain that Ethereum loyalty can waver when rewards are on the table,” concluded Masoit.
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