The Next Hidden Altcoin Gem is THORChain (Rune)
Interoperability or cross-chain. In 2022, this appears to be the buzzword for blockchains. Keeping all your transactions private on your blockchain isn’t cutting it anymore. However, being able to move your assets freely between blockchains is fashionable, but it is also necessary.
Interoperability is now available on a few blockchains, including Avalanche, Cosmos, Polkadot, and Wanchain. And, as you might expect, each project has its approach to this. A handful of our favorite blockchains are also included here. Cosmos is one of them. The Cosmos SDK/Tendermint Core is used to create
THORchain (Rune) is our focus for today.
THORchain recently hit a monthly volume of $1.25 billion, representing a 400 percent increase. They’re back, more vital than ever, after some recent stumbles. As a result, you will learn why THORChain (Rune) is a hidden treasure in this essay.
What exactly is THORChain?
The decentralized cross-chain liquidity network THORchain (Rune) bills itself as. In layman’s terms, if you’re looking for a decentralized solution that allows you to quickly trade tokens across chains without worrying about wrapping or pegging tokens, THORChain could be the answer.
The major news is that the THOR team is launching Terra today, which might propel the company’s native coin, $RUNE, to the moon. This is because Terra integration adds the LUNA token to the THORChain ecosystem and the TerraUSD (UST) stablecoin, giving users extra trading and staking choices.
Also, read – Two altcoin projects are outperforming Bitcoin Tokens
What distinguishes Thorchain from other chains is:
For interoperability, it does not employ wrapped tokens.
It operates Bifröst, a cross-chain, oracle-free bridge.
Until Thorchain, only a CEX could trade unwrapped assets.
With your deposit of local assets, you can earn a return. This is at 37.553 percent right now. Of course, in the network’s liquidity pools.
Another feature that makes Thorchain(Rune) appealing is that it fights whales. Allow me to attempt to explain. Slippage occurs in large whale trades. As a result, as slippage increases, Thorchain raises transaction costs. This makes whales less likely to dump tokens, resulting in price crashes.
Thorchain is similar to other prominent DEXs in the industry, such as Bancor or Uniswap, in that it uses an AMM (Automated Market Maker). However, there is one significant difference: The RUNE token is always one of the matching assets. RUNE is the base swap pair as a result, but it is not the destination of any transaction. As a result, liquidity is concentrated because each pool always holds a couple of RUNE tokens. In contrast to other DEXs.
What is the relationship between THORchain and other blockchains?
You may want to skip this section because it is a little technical. However, you must see it to believe in ThorChain’s innovative technology. Let’s get started:
The blockchains are linked through Bifröst. Smart tokens are used, similar to the Bancor system.
- The Continuous Liquidity Pools are what they’re called (CLP).
- CLPs are given to LPs who contribute liquidity to all pools.
- The CLPs make asset transfers easier. Thorchain provides LPs with insurance to protect them from temporary loss.
- They have a user-friendly interface.
Also, on March 10th, RUNE debuted synthetic asset trading, which is one of the reasons for the excellent price spike. The instant settlement, inexpensive gas, and no chance of Impermanent Loss are advantages of this method.
RUNE also increased by 37% on the same day. It’s up 87 percent in a week. In a nutshell, Rune has risen by about 2.5 times in the last 30 days. The name service THORname is another excellent trending value proposition they have. Long sequences of blockchain addresses become legible names, and special characters/emojis can be used. This appears to be limited to more extensive networks and ecosystems.
ThorFi, a unique new feature coming soon to your community, is another great new feature. The Thorchain (Rune) ecosystem now has lending and borrowing capabilities. Let’s take a closer look at this environment.
Ecosystem THORChain
Thorchain (RUNE) is currently a community-driven ecosystem with ten active sections and over 50 dapps, including:
- Arbitrageur’s equipment
- NFT collections of DAOs
- Wallets that are both software and hardware
- Interfaces for swapping and pooling
- Tools for liquidity providers Insurance
Among the projects are:
Thorswap is the first cross-chain aggregator in the world.
THORWallet is a mobile3 software that includes a cross-chain wallet and a DEX. Allows you to generate a passive income of up to 18% on native BTC. Furthermore, Thorchain’s TVL is $826.88 million, with $153 million in pooled funds and $963 million in total reserves. It is an engaging environment that continues to expand.
Layer0 is a generic cross-chain (EVM) messaging protocol.
Stargate is a stableswap application built on top of that.THORChain(Rune) is a cross-chain (any) swapping protocol.
The two main differences relate to assurances of decentralisation and reliance on external dependencies. https://t.co/qhBUZwM1MP
— THORChain #THORFI (@THORChain) March 27, 2022
Tokenomics & Team THORChain
Thorchain(Rune) is a well-known project, as we’ve just seen. Thorchain is now ranked #52 in market capitalization, with a $2.75 billion market value and a circulating supply of 300 million tokens, or 66% of a total supply of 500 million. The market cap climbed by $1 billion in a month. The cost is currently $9.15.
You can also stake RUNE by putting liquidity in pools. The average annual percentage yield (APY) is roughly 37.5 percent. Peaks can reach 140 percent (BEP-20 on BNB Chain). The RUNE token serves four critical functions:
- As a settlement asset, liquidity
- As a Sybil-resistant mechanism, security also influences economic behavior.
- Incentives—paying out incentives, charging fees, and subsidizing fuels Governance—signaling priority on-chain
THORChain(Rune), on the other side, began in 2018 as an anonymous collection of developers. Nonetheless, they published everything on Github to make the project transparent. These are the people in charge of the project.
They are now transitioning to a community-based governance model. The Aesir protocol is what it’s called. The Aesir were ancient Norse Gods who debated and made all decisions. The community is gradually gaining over, and the lines between the OG custodians and the community are becoming increasingly blurred. Because they are decentralized, this is a unique concept. They are not a corporation but an open-source, transparent, dynamic team with a diverse community.
TVL broke top 20 for Thorchain on Defillama. 🎉
The total addressable market (TAM) is much higher than even Ethereum itself which is the largest TVL. More chain integrations, Thorfi, and more will help to bring even more liquidity.
Lets keep building.🛠️ pic.twitter.com/zQ5FwS6R0R
— Asian | 0xV (@Asian0xV) March 27, 2022
Risk & Competitors
Is there anyone that can compete with Thorchain? Other interoperable protocols or blockchains can be considered competitors, aside from the major ones. Some minor efforts may come close:
Ren Kardiachain Anyswap (but this is a bridge and not an AMM)
What Thorchain(Rune) does, on the other hand, is unique. For interoperability, all other DeFi options employ wrapped tokens or are single chains. Instead of covering tokens, Thorchain operates Bifröst as a cross-chain bridge.
Furthermore, other centralized exchanges that allow assets to be moved across blockchains without being wrapped are centralized. That isn’t considered competition when it comes to a DeFi setup like Thorchain.
On the other side, we’ve seen that Thorchain(Rune) has a lot going for it thus far. They have no actual competitors and are one-of-a-kind. This begs the question: is Thorchain all sweetness and light? Or are there any hazards associated with utilizing Thorchain? Thorchain does not appear to have promised us a rose garden, so there are some risks:
Temporary Loss Risk:
- Thorchain offers impermanent loss insurance for 100 days. Coverage increases by 1% per day until it reaches 100 days.
- Market and economic risks are both present.
- The possibility of a bug.
- Thorchain was hacked three times in a month in July 2021.
RUNE Price Prediction & THORChain Roadmap
More action is promised in the roadmap. Where synths have only recently been added, cross-chain bridges are just the beginning. In addition, after the Chaosnet is deemed stable, a multichain mainnet will be introduced.
A few additional upcoming features are also mentioned but without any further details. ThorFi is the next milestone that is listed. This will include:
THORChain project roadmap:
* More chains (LUNA, Privacy, L2’s)
* More wallets (all the big ones)
* More integrations (Dex aggregators)
* More Features: Synths, THORFi (lending, saving), THORNamesNot stopping until decentralised liquidity 10x bigger than centralised. $RUNE
— THORChain #THORFI (@THORChain) March 6, 2022
Leveraged Trading Lending Composite Assets
The RUNE token, on the other hand, has been surging recently. The price has surged 2.5X in the last 30 days. Prices range from $3.87 to $9. That’s a massive improvement from the massacre following the cyberattacks in July 2021.
It was also a long way from the all-time high of $20.78 in May 2021, but it’s a respectable comeback nonetheless. Is there any fire left in RUNE after a 2.5x in a fear-filled market? Here’s what our RUNE Price technical analysis indicates.
Bullish Scenario: RUNE would be bullish if it could break above the $9.9 barrier mark. We might try the following resistance levels at $11.9 and $14.9 if it acquires some traction and buying pressure builds up. With considerable purchasing activity, breaking above the $14.9 price barrier will increase the chances of going above $17.
Bearish Scenario: RUNE has been trading in a downward channel for the past few weeks. If the $5.6 support level is not maintained, the price will sooner or later fall below $4, $3, $2.3, and much lower.
Thorchain(Rune) is the underdog who is making a return. The initiative deserves a lot of credit for rebounding back from its setbacks in July. The Bifrost bridge they have a unique approach to achieving interoperability. This takes the concept of cross-chaining to the next level.
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