One of the best-performing cryptocurrencies on the market right now is RUNE, the native currency of the cross-chain decentralised exchange THORChain, which has had a 31.5% price spike in the previous day.
Coingecko data indicates that RUNE has been in a very bullish condition during the last several weeks, as seen by the token’s price rise of 115.0% and 212.3% on the 14- and 30-day charts, respectively.
It’s interesting to note that the DeFi coin reached a new yearly high of $5.31 and a peak daily trading volume of $1.28 billion as a result of this persistent positive pressure in the RUNE market.
THORChain (RUNE) Hits New Yearly Peak with 31.5% Gain,THORChain (RUNE) Hits New Yearly Peak with 31.5% Gain
THORChain (RUNE) Rise’s Reasons
In analyzing RUNE’s meteoric rise in the past few weeks, several analysts have given credit to the newly introduced features on the THORChain platform.
For background, the DEX’s development team announced the addition of additional services like lending, streaming swaps, streaming loans, and stablecoin savers in the THORChain Q3 2023 Ecosystem Report.
In an X post on Saturday, a crypto analyst with the username The Wolf of DeFi provided some insight into how one of these features has spurred RUNE to new heights. The analyst attributed most of RUNE gains to the streaming swaps feature, which is designed to allow large swap requests to be automatically divided into smaller requests that are processed over time.
The Wolf of DeFi explains the introduction of this update has triggered an increase in the platform’s swap volume and the annual percentage rate (APRs) being offered to liquidity providers.
As expected, higher APRs will attract more liquidity providers who have to invest in RUNE, which serves as the base asset of every liquidity pool on THORChain, creating a cycle named the liquidity flywheel.
Furthermore, The Wolf of DeFi stated that every dollar worth of non-RUNE assets deposited in a THORChain liquidity pool is matched with its equivalent in RUNE by the network nodes.
Therefore, nodes will balance this transaction with an extra $50 RUNE whenever an LP transfers $100 into BTC/RUNE, which consists of $50 BTC and $50 RUNE. This increases the purchasing pressure in the market and permits the token to continue rising.
THORChain (RUNE) Hits New Yearly Peak with 31.5% Gain,THORChain (RUNE) Hits New Yearly Peak with 31.5% Gain,THORChain (RUNE) Hits New Yearly Peak with 31.5% Gain , THORChain coin Crypto news, THORChain coin News