In the chart below, I take a look at how Rune price fairs against Non-Rune TVL. I define Speculative Multiplier (SM) as Rune Price / Non-Rune TVL * k, to get a sense of how much of the recent Rune rally is based on hype vs fundamentals. All else equal, low SM = less hype.
As can be seen, SM, while trending up is still away from levels it has reached in previous bull cycles, indicating the rally is mostly fundamentals-driven.
Note that my SM definition here is different from SM originally defined by the community which also takes into account bonded Rune and would be even lower as bonded Rune is at ATH.
More importantly, SM doesn’t take into account, volumes and fees generated over the TVL. With streaming swaps, it has become common for THORChain to provide the best execution for large (6 figures) trades *even when compared to CEXs*.
Confident with its PMF, the community now discusses increasing the minimum fee on L1 swaps to 5 bps as secondary effects are considered to be more beneficial in the long term. (for the uninitiated, THORChain has a slip-based fee, where smaller trades pay smaller fees and vice versa. Last I checked, most of the trades were paying around 3bps)