In the ever-evolving cryptocurrency market, the native token of THORChain, called RUNE, has emerged as one of the top-performing assets. Over the past 24 hours, RUNE has seen a staggering price increase of 31.5%. This surge in price only solidifies the remarkable bullish form that RUNE has displayed in recent weeks. According to Coingecko, the token has witnessed a significant rise of 115.0% and 212.3% on the 14-day and 30-day charts, respectively.
The introduction of new features on the THORChain platform has been credited as one of the primary catalysts for RUNE’s meteoric rise. In the THORChain Q3 2023 Ecosystem Report, the development team revealed several innovative additions to the platform. These include lending, streaming swaps, streaming loans, and savers for stablecoins.
Among these new features, streaming swaps have particularly stood out in driving the surge of RUNE. This feature enables the automatic division of large swap requests into smaller ones, thereby processing them over time. It provides increased liquidity to the platform and incentivizes liquidity providers by offering higher annual percentage rates (APRs).
As liquidity providers are attracted by these higher APRs, they invest in RUNE, which serves as the base asset for every liquidity pool on THORChain. This results in a self-perpetuating cycle known as the liquidity flywheel. Furthermore, for every dollar’s worth of non-RUNE assets deposited in a THORChain liquidity pool, the network nodes match it with an equivalent amount of RUNE. This creates additional buying pressure in the market, contributing to the token’s upward trajectory.
While the price of RUNE continues to soar, it’s important to note that the token is currently in the overbought zone, as indicated by the relative strength index (RSI) standing at 87.24 on the daily chart. This suggests a potential price pullback in the near future. Investors should exercise caution and remain vigilant.
Despite the possibility of a price pullback, the bullish momentum of RUNE shows no signs of dissipating. The THORChain team is actively working on introducing more exciting features to the platform, including order book trading. These upcoming enhancements are expected to further strengthen the value proposition of RUNE and attract more users to the ecosystem.
At the time of writing, the price of RUNE is valued at $5.10, with a 3.2% gain in the last hour. The token’s market capitalization stands at $1.58 billion, securing its position as the 41st largest cryptocurrency in the market.
RUNE’s astonishing performance in the market can be attributed to the introduction of new features on the THORChain platform, with streaming swaps taking center stage. The liquidity flywheel created by this feature and the matching of non-RUNE assets with RUNE serve as powerful driving forces behind the token’s upward trajectory.
However, investors should remain cautious as the RSI indicates an overbought zone. While a price pullback could occur, the long-term prospects of RUNE remain promising, given THORChain’s continuous efforts to enhance the platform’s functionality. With order book trading on the horizon, RUNE’s bullish run might just be the beginning of an exciting journey for both the token and its investors.
