The privacy pool value on Tornado Cash appears to be spiking, according to data compiled by The Block.
In just three days, the pool grew from $15.54 million on December 17th to $23.89 million on the 20th — a 54% increase.
A possible explanation for the increase is that Tornado Cash launched its governance token, TORN, on December 18th. TORN holders can collectively change the protocol of Tornado Cash, allowing the mixer “to evolve under the stewardship of its community,” according to a post from its developers.
Tornado Cash is an Ethereum-based mixer, which obscures the on-chain tie between transaction recipient and sender. Tornado Cash launched in 2019 and supports ETH, DAI, cDAI, and USDC through four mixer contracts.