The Ronin network is a decentralized finance ecosystem that was initially designed for Axie Infinity but has now expanded to include other DeFi projects and games. In May, Ronin experienced significant growth in the DeFi sector, particularly due to increased inflows into the MetaLend project. The total value locked (TVL) in the project grew by 30% in just one month, contributing to the overall recovery of Ronin’s value in the past two quarters.
April was a pivotal month for the Ronin network, as it saw the return of new active wallets across all use cases. Ronin’s growth is not limited to DeFi but also includes the addition of third-party games to its portfolio, expanding beyond its specialization in Axie Infinity games. This diversification has helped Ronin recover from the 2022 hack, where the Ronin bridge lost approximately $600 million worth of tokens.
Initially, Ronin served as a tool for the assets of the Axie Infinity game, providing cheaper transactions and trading for Axie NFTs, as well as the AXS and SLP token transfers. The network also launched the Katana DEX to serve the game community. However, Ronin has now evolved to become more than just a gaming platform, offering a native wallet and various functions to connect to the wider Web3 space. Users can now add Coinbase Pay to their Ronin wallets, expanding the potential audience to an additional 90 million users.
Ronin actively engages users through gaming challenge events, tournaments, and a play-to-airdrop model for free games, resulting in significant growth in daily active wallets. The network also provides integration with the Katana exchange through its app, offering easier access to a wider selection of small-scale and riskier tokens. While the turnover of the Katana exchange is around $4.2 billion in 24 hours, liquidity is currently limited to a small selection of top tokens.
The RON token is currently aiming to recover its $1 billion valuation and establish itself as a successful unicorn in the crypto space. It has already demonstrated success in 2024, reaching its all-time high of $4.40 in March. Although its price has declined to $2.80, the token still holds onto some of its gains, with a total valuation of $913 million. With limited daily volumes of around $13 million, even an activity of $100 million could lead to a significant rally. The current market conditions suggest that RON could be bullish if interest in Web3 and gaming returns. The token also benefited from a new trading pair on the HTX exchange, where it is now paired with USDT.
Ronin gains attention through its association with Axie Infinity, one of the most notable games during the play-to-earn boom of 2021. The game is currently experiencing increased interest, with over 38,000 daily active players and more than $1 billion in value turnover. Users on Ronin are also driving the NFT trade related to Axie games, increasing turnover and interest in Axie metaverse land plots. Axie Infinity recently reached its highest level of player activity in the past 12 months and is recording 60,000 transactions per day on the Ronin blockchain.
In addition to gaming, Ronin is also working on a blockchain-based ID, which is one of the popular use cases for Web3 in 2024. The network offers a .ron naming service, allowing users to create specialized addresses similar to the Ethereum Domain Name Service.
Furthermore, the scarcity of RON tokens is increasing due to staking, with around 20% of the total supply already being staked. The number of staked tokens has exceeded 209 million, while the total supply of RON will never exceed 1 billion. Approximately 145,000 Ronin wallets have delegated their tokens. The circulating free supply of RON is currently around 322 million tokens, and its usage for fees, gaming, and trading is growing.
