Why is the price of the THORChain (RUNE) coin rising?10 Mar 2022
The price of THORChain (RUNE) is on a very strong bullish trend even as a majority of popular coins like bitcoin plummet.
Currently, it is trading at $4.84, up 4.23% over the last 24 hours. It has hit a high of $5.58 and a low of $4.60.
It has a trading volume of $340,030,414 and a market cap of $1,600,966,352 in the last 24 hours.
In this article, we shall take a deep dive into what is making the price of THORChain (RUNE) rally while a majority of popular coins like Bitcoin and Ethereum are down today.
What is THORChain (RUNE)?
Before delving into the current RUNE price hike, it is important to first understand what it RUNE coin is.
RUNE is the native token of the THORCHain blockchain, which is a decentralized liquidity protocol that enables users to exchange cryptocurrency assets with full custody of their assets.
Why is the price of RUNE soaring?
Below are some of the reasons behind the current RUNE price hike.
- Launching of synths
One of the reasons behind the current RUNE price hike is the activation of synthetic assets on the THORCHain network.
Thorchain clocking in $40M of volume on day of synths launch
A good start
— $RUNE Ranger 🔨 (@TheRuneRanger) March 10, 2022
Synths or crypto Synthetics are derivative tokens of other digital assets pegged to value underlying collateralized assets like Ether (ETH) and Bitcoin (BTC).
THORChain decided to back its synths with 50% RUNE tokens. Earlier today, the activation went live for synthetics like sETH and sBTC to be traded on the network.
In a blogpost today, THORSwap Finance noted the advantage of synths saying:
“synths have great utility for traders and arbitrageurs, as they can be transacted nearly instantly and at a fraction of the cost compared to native L1 swaps, … In the future, it will allow THORChads to also earn yield with Synths thanks to vaults and provide other exciting THORFi utilities.’’
- Mainnet launch
Another reason for the price hike is the highly anticipated mainnet launch on THORChain, however, the launch date is not yet confirmed.
Earlier today on Twitter, THORChain developer Chad Barraford said:
“Trading with synthetics on THORChain has half the swap fees, making swaps cheaper, cheap gas fees, and faster for traders. You can do near-instant trades at a high volume.”