What’s weighing on THORChain’s RUNE crypto?

Highlights

• THORChain is said to be a liquidity protocol, with features like swapping and borrowing
• RUNE, which is the native token of THORChain, will be delisted next week by the global crypto exchange, FTX
• The RUNE token’s trading volume has dropped almost 25% over the past 24 hours

The listing or delisting of a cryptocurrency on any exchange may shape the price of the asset. Recently, the AVT token of Aventus blockchain project was listed by the exchange Bittrex. This was said to be the key reason behind the AVT token’s trading volume surging by almost 5,000%.

However, a token’s delisting is usually known to have an opposite effect. A major exchange has decided to delist THORChain’s RUNE token. Though the final removal of the token is yet to take place, the news seems to have weighed on the RUNE crypto.

What’s happening with RUNE crypto?

FTX, a global crypto exchange, has said it will delist RUNE spot markets from its trading platform. The statement also mentions that both RUNE/USD and RUNE/USDT pairs will be suspended.

The delisting will take effect on coming Monday, June 13. FTX has also said that withdrawals of RUNE tokens by holders would continue to be supported. It is also mentioned that RUNE would be listed again on FTX when the token’s mainnet integration is completed. The THORChain project had previously stated that RUNE IOU tokens will be replaced by Native RUNE after mainnet.

Also read: Top three NFT cryptos by market cap

What is THORChain?

THORChain is a decentralised, blockchain-based platform, which primarily enables users to swap cryptoassets. It calls itself a liquidity protocol where users can exchange their assets. The project also claims that all profits made by the protocol are subsequently passed on to the platform’s users.

Built with the help of Cosmos SDK, THORChain protocol asserts it is not vulnerable to cyberattacks. RUNE is being used by THORChain as the native token.

RUNE token price

RUNE is a relatively new asset when compared with Bitcoin and Ether. As of writing, its market cap is over US$900 million, which makes it one of the top 100 assets. The RUNE token can have a maximum supply of 500 million coins, according to CoinMarketCap.

RUNE started the year 2022 with a price of nearly US$7. The price stayed largely in the red for the first two months. By March end, the price had soared to nearly US$12, before it started paring gains. RUNE is trading under US$3 as of writing, with its 24-hour trading volume down by almost 25%.

Data provided by CoinMarketCap.com

Bottom line

All cryptos do not have similar price trajectories at any given time. As of writing, Unifi Protocol (UNFI), and Aventus (AVT) are two of many other cryptos rising steeply. The delisting of RUNE may have impacted its price over the past one day, but what will happen in the near future is uncertain.

Also read: What is dotmoovs metaverse and why is MOOV token rising?

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