In the last 24 hours, the native token of the cross-chain decentralized exchange THORChain, RUNE, has experienced a staggering 31.5% price increase. This recent surge is just one of many positive developments for RUNE, as the token has witnessed remarkable bullish trends over the past few weeks. On the 14-day and 30-day charts, RUNE has climbed by an impressive 115.0% and 212.3%, respectively. Additionally, the DeFi coin recently achieved a new yearly high of $5.31, accompanied by a peak daily trading volume of $1.28 billion. Such consistent bullish pressure has captivated the attention of analysts, who attribute this success to the introduction of new features on the THORChain platform.
The THORChain Q3 2023 Ecosystem Report unveiled several innovative features, including lending, streaming swaps, streaming loans, and savers for stablecoins, among others. These new additions to the THORChain platform have been credited with driving RUNE’s astronomical growth. One feature, in particular, has garnered significant attention. The streaming swaps feature facilitates the automatic division of large swap requests into smaller, time-processed orders. According to influential crypto analyst, The Wolf of DeFi, this feature has played a pivotal role in RUNE’s recent surge.
The Wolf of DeFi explains that the introduction of the streaming swaps feature has not only increased the platform’s swap volume but also enhanced the annual percentage rate (APR) provided to liquidity providers. Consequently, higher APRs have successfully attracted a greater number of liquidity providers, who need to invest in RUNE as the base asset of every liquidity pool on THORChain. This influx of liquidity providers sets off a self-repeating cycle referred to as the liquidity flywheel.
Each dollar worth of non-RUNE assets deposited in a THORChain liquidity pool is matched with an equivalent amount of RUNE by the network nodes. For instance, if an LP deposits $100 consisting of $50 BTC and $50 RUNE into the BTC/RUNE liquidity pool, the nodes will balance this transaction by adding $50 RUNE. As a result, this amplified buying pressure sustains the upward trajectory of the token’s value.
While the RUNE token is experiencing significant growth, it is important for investors and traders to exercise caution. Analyzing the daily chart, the relative strength index (RSI) currently sits at 87.24, indicating that the token has entered the overbought zone. This suggests that a price pullback could be imminent. However, despite the potential for a correction, the bullish momentum of RUNE may continue unabated. The THORChain team plans to introduce additional appealing features in the near future, one of which is order book trading. As of now, the token is valued at $5.10, showcasing a 3.2% gain in the past hour alone. With a market cap of $1.58 billion, RUNE proudly stands as the 41st largest cryptocurrency in the market.
The remarkable ascent of the RUNE token indicates its potential as a thriving investment opportunity. With a recent surge of 31.5% and significant gains over the past few weeks, RUNE has firmly established itself as a force to be reckoned with in the market. The introduction of innovative features, such as streaming swaps, on the THORChain platform has triggered a cycle known as the liquidity flywheel, which propels the token’s upward momentum. Despite the possibility of a price correction, the bullish trend of RUNE remains strong. As the team behind THORChain continues to unveil promising features, the token’s value may continue to rise, attracting more investors and cementing its position in the cryptocurrency market.