Why did Thorchain (RUNE) crypto gain 150% in one month?

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 Why did Thorchain (RUNE) crypto gain 150% in one month?
Image source: © Alexanderushkevich | Megapixl.com

Highlights

  • THORCHain (RUNE) is a decentralized liquidity protocol.
  • RUNE is its native utility token.
  • The protocol has currently US$322.35 million under Total Value Locked (TVL). 

Thorchain (RUNE) has been gaining traction for some time, and its volume rose more than US$1 billion in March. 

The protocol is gaining traction with more cryptocurrencies coming on the platform, Terra (UST) being the latest addition.

Recently, Defispot.com, a decentralized multi-chain exchange, launched its website. Its platform has a simple interface to access the full suite of products powered by Thorchain.

Amid all the buzz, the THORChain (RUNE) token rose 8.64% to US$9.17 at 7:50 am ET Friday.

Why does THORChain keep rising?

To understand this, we need to understand what it is.

THORCHain is a decentralized liquidity protocol. Thorchains’s mainnet was initially launched in 2021. The protocol allows users to exchange their cryptocurrency assets across various networks without losing their full custody of the assets.

The protocol works on the proof-of-stake consensus mechanism. The project claims that its token model is such that the value of the RUNE token increases in value with the growth in the utilization of its network. The more liquidity goes into the Thorchain Liquidity Pools, the more valuable RUNE becomes.

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In Thorchain, users can swap one asset for another in a permissionless setting where the market prices are maintained through the assets ratio in the pool. The protocol charges fixed network fees and a variable slip fee to ensure liquidity.

The platform is not a profit-oriented entity. The fees it generates go to the users directly, and the team managing the platform does not get anything out of it. The team is incentivized by holding RUNEs like the other users.

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Interestingly there is no CEO, no founder, and director in Thorchain. The platform development is instead organized through Github. The people working on the project are also anonymous.  

The attraction of Thorchain for pulling volumes in trade could be attributed to its chain-agnostic feature, which allows swapping assets on an objective basis, for example, swapping real ETH for real BTC. 

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RuneData Source: coinmarketcap.com

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RUNE token details:

RUNE is the native utility token of the Thorchain platform. It is used as the base currency in its ecosystem and utilized for governance and security. RUNE’s market capitalization is US$3.03 billion, and Binance, Mandala Exchange, CoinTiger, FTX etc., are the crypto exchanges where one can buy, sell, and trade it.

RUNE is currently available on various blockchains, including Ethereum and Binance as an ERC-20 token and BEP-20 token.

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The protocol has currently US$322.35 million under Total Value Locked (TVL). 

Its trading volume has constantly been increasing, and in the last 24 hours, it increased 57.79% to US$309.7 million.

The token has a circulating supply of 330.69 million RUNEs, a maximum supply of 500 million RUNEs and the current total supply of 334.9 million RUNEs.

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Bottom line:

The Crypto market is volatile and carries the risk of hacking and scams. One must exercise caution while investing in the digital assets space. 

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