Ronin Revival: Vibrant Ecosystem Bounces Back From Bumpy Binance Token Listing
Although the protocol’s total value locked remains below its 2022 peaks, it has made progress.
Despite a turbulent start to its listing on Binance, Ronin, the gaming blockchain by Sky Mavis, has largely sustained the token (RON) rally of the past quarter.
Ronin token prices experienced significant volatility on Feb. 5, dropping over 40% to $2.52 after a 28% increase the previous week. At present, RON trades at $2.63.
Ahead of its listing, RON saw accumulation evident on the blockchain and leaked communications from Binance insiders, leading to a subsequent sell-off after listing.
Binance’s co-founder Yi He announced plans to enhance internal controls, separating listing teams from project research teams to prevent information leaks.
“If project listing information leaks, the listing will be canceled,” He wrote. “If any information is leaked after the announcement, the pending listing will be extended directly, and the listing will be decided based on subsequent adjustments.”
Aleksander Larsen, co-founder of Sky Mavis, highlighted Ronin’s status as one of the leading gaming chains, expressing anticipation for its Binance listing and plans to onboard 16 partner studios and games in 2024. Larsen envisions opening the Ronin network for game deployment, with successful titles integrated into the Mavis Hub.
Despite a token price recovery, Ronin’s total value locked (TVL) remains subdued following a major hacking incident in March 2022 and a broader cryptocurrency market downturn. Currently at $156 million, TVL is predominantly driven by the Katana decentralized exchange.
Larsen has clarified that Ronin, as a gaming-centric chain, prioritizes its focus away from competing for Total Value Locked (TVL) with DeFi chains. He noted that Katana, the native decentralized exchange on the Ronin Network, is equipped with ample liquidity for daily trading among players. Larsen also mentioned that LP rewards ensure liquidity for $RON tokens:
What makes Ronin unique is that every single dollar deposited to the network is there to get exposure to blockchain games, so even if the TVL is lower than some DeFi focused chains the liquidity that is on Ronin is perfect for game studios.
Following the 2022 heist, Ronin has implemented substantial measures to enhance user security. According to Larsen, all code underwent comprehensive review and optimization, with security experts auditing the entire architecture.
Additionally, developers introduced a circuit breaker system to restrict daily withdrawals and updated the protocol’s bridge smart contract to allow validators to establish withdrawal limits. Larsen expressed confidence in Ronin’s resilience, noting that while some of the stolen funds have been recuperated, the majority remain unaccounted for.
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