Ronin Maintains Upward Trend Amid Volatility; Sky Mavis Enhances Security Measures
Summary:
Despite experiencing volatility following its debut on cryptocurrency exchange Binance, the Ronin (RON) token, developed by gaming company Sky Mavis, has sustained its upward trend. Binance co-founder Yi He announced stricter measures to prevent future information leaks, against the backdrop of the token's tumultuous launch. Sky Mavis aims to collaborate with 16 partner studios and games throughout 2024, furthering Ronin's role as a popular gaming blockchain platform. Despite a recovery in Ronin's value, the total value locked (TVL) within the platform has remained stagnant. Post the 2022 cyber heist, Ronin has significantly bolstered user safety protocols, making strides in securing user investments.
Despite an initial dip following its inclusion on cryptocurrency exchange Binance, the Ronin (RON) token, generated by Axie Infinity's developer Sky Mavis, has maintained its upward trajectory. On February 5th, Ronin's value experienced substantial instability, dropping over 40% to $2.52 following a 28% surge the previous week. At present, RON is valued at $2.63.
Before its Binance debut, a mix of visible token gathering on the blockchain scanner and leaked internal Binance communications led to insiders accumulating and subsequently selling off RON, causing a price decrease. In response to this, Yi He, Binance co-founder and wife of ex-CEO Changpeng Zhao, announced that the platform has plans to implement stricter internal mechanisms to stop information leaks. He stated any leak would result in the listing being cancelled or delayed.
Aleksander Larsen, Sky Mavis's co-founder, revealed in an email to Cointelegraph, that Ronin has evolved into one of the most widely-utilized gaming chains and its listing on Binance had been anticipated for a while. The project aims to recruit 16 partner studios and games throughout 2024 with goals to allow everyone the opportunity to deploy their games on the Ronin network by year's end. Games that do well will be included in the Mavis Hub, the company's game curation platform with similarities to Steam.
Even with some recovery in its token price from a low point of $0.45 in October 2023, the total value locked (TVL) in Ronin remains stagnant. After North Korean hackers stole $600 million via the Ronin Bridge in March 2022 and alongside a general drop off in crypto prices that year, Ronin's TVL decreased from about $1.5 billion at the commencement of 2022 to less than $50 million by the conclusion of the year. Currently, the metric stands at $156 million with 99% of locked funds contributed by the Katana decentralized exchange native to the ecosystem.
Larsen articulated that for Ronin, a gaming-centric chain, competing for TVL with DeFi chains isn't a priority. He stated that the Katana DEX on Ronin Network should provide sufficient liquidity for regular player trading and that what sets Ronin apart is its focus on blockchain games. Even though the TVL might be smaller than some DeFi-focused chains, the liquidity held in Ronin is ideal for game studios.
Following the 2022 cyber theft, Ronin has made significant strides in user safety. According to Larsen, the entire architecture had been thoroughly audited and optmized by security specialists. Additionally, developers implemented a circuit breaker system that caps the quantity of daily withdrawals and upgraded the protocol's bridge smart contract to allow validators to establish withdrawal ceilings. Larsen stressed on Ronin's robustness although majority of the stolen funds remain unaccounted for.
Published At
2/6/2024 7:39:07 PM
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