Ethereum is losing $ 1.8 billion in liquidity to Ronin in just 2 weeks

In the first two weeks since Sky Mavis, the team behind Axie Infinity (AXS), Katana moved a net worth of $ 1.8 billion from Ethereum (ETH) to Ronin (RON) report recently revealed by DappRadar.

The data collection and analytics firm, which tracks thousands of dApps across multiple blockchains, says the first decentralized exchange (DEX) to run entirely on Ronin was valued at $ 1.3 billion (TVL) in that short amount of time. has reached.

Meanwhile, the daily number of active addresses for Ronin, the Ethereum-Linked Sidechain created specifically for Axie Infinity, has hit a new high of over 1.1 million.

Agriculture RON

Axie is considered to be the spearhead of the play-to-earn (P2E) movement and, according to DappRadar data, attracts more than 2 million active players every day.

The release of Katana has increased the liquidity of all assets in the ecosystem as users can now switch between four tokens with three pools of liquidity, two of which allow users to farm tokens. Origin and Governance of Ronin, RON.

While the Ronin Bridge has been fully operational since May, the introduction of katana has unlocked the flow of value.

In the past 30 days, the Ronin Bridge has seen over $ 7.5 billion in volume and has emerged as the most widely used solution for moving assets out of Ethereum bypassing the Avalanche Bridges and Polygon, among others.

During this period, AXS and ETH represent over 57% of all assets transferred by Ethereum.

“Ronin has shown the crypto industry how to successfully achieve interoperability, and the impact of skyrocketing Ethereum gas fees on a popular category like gaming underscores the importance of it,” commented Modesta Masoit, Chief Financial Officer at DappRadar.

Meanwhile, Ronin has reached a new milestone, exceeding 1.1 million active addresses daily, reported journalist Colin Wu.

The source: Twitter

Net flow from ETH, AXS and SLP

Since the Katana was launched, Ronin has received over 182,600 ETH, which is roughly $ 836.38 million.

“Of the ETH transferred to Ronin, 73% is locked in the Katana liquidity pools, providing the dApp with over $ 615 million in ETH liquidity,” the report added, noting that the case was prior to the introduction of Katana the main use of ETH in Ronin is to buy Axie’s NFT.

The report revealed a similar story with the AXS Netflow. Within two weeks of the Katana launch, 7.74 million AXS worth approximately $ 1.1 billion were transferred to Ronin.

DappRadar notes that AXS is valued at $ 363.7 million

For the game’s main currency, Smooth Love Potion (SLP), which can be earned by completing adventure quests or winning PvP battles, Ronin posted a net loss of $ 78.44 million when about 887 million SLP switched to Ethereum.

Players use SLP to cash out Axie Infinity’s P2E rewards by converting these tokens on Centralized Exchanges (CEX) and “net negative SLP flow”. The report goes on to explain that SLP price has increased 90% since Katana was deployed.

From November 3rd to 6th, AXS ‘sushi swap offering fell 82%, “which reduced AXS’ liquidity from $ 5.5 million to just $ 320,000.” DappRadar also revealed that Katana has withdrawn AXS liquidity from the Ethereum DEX.

“Maximalists may complain about safety, but everyday users ask for gasoline fees. And while it is not necessary for players connecting assets to Ronin to trust the network, it is certain that loyalty to Ethereum will waver in favor, ”concluded Masoit.

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