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Tag: RUNE

  • Why is THORChain Trending?

    Why is THORChain Trending?

    The price of RUNE, the native token of the THORChain decentralized finance (DeFi) ecosystem, has risen significantly in the last week following the announcement of a slew of new features, including synthetic assets and no-interest loans.

    At 13:45 UTC, the price of RUNE had risen by 8.6 percent in the previous 24 hours to USD 7.6. Meanwhile, the price increase over the last week has been significantly higher, with a 7-day gain of 78%, making it the week’s second-best performer among the top 100 crypto assets by market capitalization.

    The most recent gains for RUNE came as a result of the distribution of a draught document to “a small number of community members” that purportedly outlines details about THORChain’s new features. According to a Tuesday update from the THORChain Twitter account, feedback is now being gathered, and a revised version of the document will be made public “soon.”

    The upcoming features are part of THORChain’s DeFi ecosystem, dubbed THORFi by the team.

    THORChain developer Chad Barraford stated in a Twitter Space last Friday that the entire THORFi ecosystem, including a new TerraUSD (UST)-inspired stablecoin dubbed THOR.USD could be ready for release on June 17 this year.

    While the full THORFi suite will not be available until this summer, the team said that minting synthetic assets on the THORChain protocol was already enabled last week. It went on to say that allowing synthetic assets will result in lower swap fees and more income for liquidity providers.

    Synthetic assets on THORChain, according to Barraford, differ from those on other protocols in that they are backed 50/50 by the asset and THORChain’s native RUNE tokens.

    “Because the synth is half-backed by RUNE, it can always ensure the economic security of the synthetics, and that network security is always greater than the value of the synthetics, even if they go 1000x higher in value,” the developer explained on Twitter.

    THORChain is a protocol based on Cosmos (ATOM) that allows crypto users to transfer tokens between blockchain networks in a decentralized and non-custodial manner. The price of its native token RUNE rose dramatically in the first half of 2021 but has since fallen, and it is still down by approximately 63 percent from its all-time high reached in May of last year.

  • Why is THORChain’s Rune Pumping?

    Protocol for inter-chain communication THORChain launched synthetic asset trading on its platform this morning, leading values of its native token RUNE to rise by up to 37% from Wednesday’s lows of $4.05 to Thursday’s high of $5.56.

    Synthetic assets, or blockchain-based representations of other assets, such as cryptocurrency, are backed by half the value of the real asset and half in RUNE. This enables users to keep and trade a representation of a layer 1 or base asset more quickly and at a reduced cost.

    Through RUNE, THORChain enables trustless trading and token swaps for a variety of cryptocurrencies, ranging from bitcoin to ether. Using RUNE as an intermediary allows assets from one network to be traded for assets from another in a decentralized way without the use of smart contract-based “bridges.”

    A trustless trading system is one in which players do not need to know the identities of other participants.

    According to a developer note, synthetics will boost network traffic, network total value locked (TVL), pool depth, resulting in lower swap costs, and create more cash for liquidity providers. The upgrade was approved by a two-thirds majority of distributed node operators.

    Synthetics raises the demand for RUNE inside the network, which boosts their desirability among liquidity providers that offer the underlying tokens in exchange for a fee. This enables all synthetic assets to be exchanged on an uniform basis with the underlying asset — for example, a synthetic bitcoin on THORChain will be easily redeemable for one bitcoin.

    The first synthetic was made within minutes after the process was activated. Blockchain records suggest that 0.00054906 bitcoin was staked for a bitcoin synthetic.

    Price Movement – Rune

    RUNE has gained more than 37% in the last 24 hours after the synthetic update went online, reaching weekly highs of $5.56 in early Asian hours. It has now fallen by 60 cents as speculators profited amid a broader market decline. According to CoinGecko, prices are up 40% in the last two weeks but down 76 percent from lifetime highs of $20.87.

    Token prices on THORSwap, a decentralized exchange (DEX) based on the THORChain technology, have increased by 11% in the last 24 hours. Users can earn yields and offer liquidity inside the THORChain ecosystem by using the DEX.

    The announcement on Thursday comes months after THORChain was abused for $8 million in July 2021. The company informed CoinDesk at the time that a hacker used a bespoke contract to mislead its Bifrost Protocol into accepting a deposit of fictitious assets.

  • THORChain (RUNE) – What to Expect from the Chart

    THORChain (RUNE) – What to Expect from the Chart

    According to coinmarketcap, the maximum supply of RUNE is around 461M RUNE and the circulating supply is around 258M RUNE. RUNE holds the 61st rank according to market cap and has the market dominance of 0.11%.

    At the time of writing RUNE is being traded at the price of $11.27 with an increase of almost 8.01% in the last 24 hours. RUNE is bullish for the long term. The maximum and minimum today are $11.97 and $10.39 respectively. The daily trading volume has also increased by almost 111.65%. RUNE had created its ATH in May 2021 and reached a price of almost $21.280. During the crash, the price of RUNE dropped down to a level of $3.010. The price is trying to regain its momentum and cross the all-time high but it can drop for some time.

    Technical Analysis – THORChain (RUNE)

    Even though we can see that Rune is going to drop but it doesn’t mean that the higher time frames (monthly and weekly) are showing the same. The price is quite bullish and we can expect it to go higher in the long run but currently, the price may retrace back a little.

    The price broke structure and started moving upwards and this was done with strong momentum. This did create an order block but was invalidated when the price created the second order block after it started to drop. It created a head and shoulder pattern which resulted in the price dropping down (this created the new order block). Now the price has broken structure. We can expect that it will move upwards to the order block and if a clean break is observed from this level, we can expect the price to move up again.

    ThorRune (RUNE) - 1D

    If the price shows any kind of reaction, we can expect that it would result in a drop to the unmitigated order block which was created by the first impulsive move. The presence of the inefficient price movement is also a confluence for the price to a dropdown.

    Price Prediction – THORChain (RUNE)

    In the long run, RUNE is a good opportunity. According to the wallet investor, the price of Rune is to reach a value of $11.531 in a year. For a five-year plan, the price will reach a value of $59.536. But the investors are even more bullish on the value and they think that it will reach even more.

  • THORChain (RUNE) coin bearish momentum to continue?

    THORChain (RUNE) coin bearish momentum to continue?

    THORChain (RUNE) had begun an upside move in the recent timeframe; however, the bulls could not be sustained as the cryptocurrency fell towards bearish pressure in the market. At the time of writing, THORChain is standing at a price level of $5.54. The price has declined by 5% in the past twenty-four hours while the trading volume has increased by 10%. The weekly performance of the cryptocurrency has also been subpar as it fell by more than 25%.

    THORChain (RUNE) technical analysis

    The market sentiment for the cryptocurrency is bearish. Out of the twenty-four technical indicators, fifteen are giving out a signal of sell with eight indicators standing at a neutral position and only three indicators giving out a bullish signal.

    THORChain (RUNE) technical analysis
    THORChain (RUNE) technical analysis

    THORChain (RUNE) had been operating in a descending channel formation since May. The cryptocurrency has been oscillating inside the formation with high volatility but the volatility can also be observed to be declining. Currently, RUNE coin has entered a horizontal channel marked by minor resistance and support levels at the boundaries. The upcoming price action of the cryptocurrency will prove to be crucial for its future analyses. The technical currently indicate towards the continuation of the bearish trend in the market. The decreasing volatility also hints towards the stabilization of the price in a bearish trend.

    What is THORChain (RUNE)?

    THORChain is based on the blockchain of Cosmos – also dubbed as “the internet of blockchains”. THORChain aims to enable the cross trading of different assets in order to unlock liquidity in the market. The working of the network is similar to crypto exchanges where one asset can be exchanged for another but the caveat is that all of this is done in a complete decentralized manner. THORChain also has a decentralized exchange by the same name. The network can be regarded as the stepping stone towards total decentralization of the crypto space.