The native token of THORChain, RUNE, has been making waves in the cryptocurrency market with its impressive performance. Over the past 24 hours, RUNE has experienced a significant price increase of 31.5%. This surge is just one example of the token’s remarkable bullish form in recent weeks. On the 14-day and 30-day charts, RUNE has seen gains of 115.0% and 212.3% respectively. Accompanying this impressive performance is a new yearly high of $5.31 and a peak daily trading volume of $1.28 billion. In this article, we will explore the reasons behind RUNE’s meteoric rise and the key features introduced by the THORChain platform.
Unveiling New Features
THORChain’s Q3 2023 Ecosystem Report revealed the implementation of several new features designed to enhance the platform’s capabilities. These features include lending, streaming swaps, streaming loans, and savers for stablecoins. Analysts credit these new additions as playing a significant role in the recent surge of RUNE.
According to The Wolf of DeFi, an influential crypto analyst, the streaming swaps feature is the primary catalyst behind RUNE’s price gains. This feature enables large swap requests to be automatically divided into smaller requests processed over time. The introduction of this feature has boosted THORChain’s swap volume and increased the annual percentage rate (APR) offered to liquidity providers. Higher APRs attract more liquidity providers who invest in RUNE, the base asset of every liquidity pool on THORChain. This influx of liquidity creates a cycle known as the liquidity flywheel.
Under the liquidity flywheel mechanism, every dollar’s worth of non-RUNE assets deposited in a THORChain liquidity pool is matched with its equivalent in RUNE by the network nodes. For example, if an LP deposits $100 comprising $50 BTC and $50 RUNE into the BTC/RUNE pool, network nodes will balance this transaction with an additional $50 RUNE. This additional RUNE contributes to the buying pressure in the market, fueling the token’s upward trajectory.
Considering RUNE’s daily chart, the relative strength index (RSI) currently stands at 87.24, indicating that the token is well within the overbought zone. Investors should remain cautious as a price pullback may be possible. However, given the sustained bullish momentum, it is also reasonable to anticipate continued upward movement. The THORChain development team is actively working on introducing more attractive features, including order book trading.
At the time of writing, RUNE is valued at $5.10, having gained 3.2% in the last hour. Its market capitalization stands at $1.58 billion, securing its position as the 41st largest cryptocurrency in the market.
THORChain’s native token, RUNE, has experienced an impressive surge in price and trading volume. This can be attributed to several factors, including the introduction of new features such as streaming swaps and increased APRs for liquidity providers. The liquidity flywheel mechanism further contributes to the token’s upward trajectory. While caution is advised due to the overbought RSI, the THORChain team’s ongoing development efforts and the potential for order book trading suggest that the bullish momentum of RUNE may continue. As the market evolves, investors and enthusiasts eagerly watch how RUNE’s performance unfolds in the coming weeks.
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