Price Predictions

THORChain(RUNE) /USDT Price Prediction: 08 February 2022

THOR Technical Analysis

Overview

With crypto adoption growing to a large extent, the need for cross-chain networks surfaces. As the assets built on Bitcoin may be pretty easy to buy/sell compared to the assets built on the Ethereum platform. Here’s when a cross-chain platform like THORChain jumps into action that enables the swapping or trading of crypto assets in a completely decentralized way. The platform eliminated the requirement of any intermediary authority to carry out this job. 

In short, the THORChain DEX, similar to Uniswap or Sushiswap, allows users to trade or lend their crypto. The users lend their crypto to provide liquidity to the pool and in turn earn interest or ‘yield’ on those assets. The yields are in the form of the platform native token RUNE which is also a governance token and the main powerhouse of the platform. The DeFi token is utilizing all its resources to halt the downtrend but it appears that RUNE may consolidate some more before spiking high. 

What is THORChain(RUNE) 

THORChain, which was founded in 2018, is a decentralized cross-chain liquidity protocol that enables the exchange of crypto assets within the decentralized space. The asset can be swapped easily without the need to wrap the token or use the pegged tokens. The THORChain platform also offers full control of your digital assets without the requirement of an intermediary authority.

The platform is secured by powerful mechanisms like Byzantine-fault-tolerance, Tendermint, Cosmos-SDK, Threshold Signature Scheme(TSS), etc. Like any other Decentralized Exchange(DEX) aims to push the boundaries of decentralized finance beyond borrowing, lending, buying or only selling. The protocols’ multi-chain ‘Chaoset’ was finally launched in April 2021, moreover, the THORChain team intends to completely hand over the control of the network to the community by summer 2022. 

Additional Read: Daily Crypto News, 8 February 2022

How Does THORChain(RUNE) Work?

THORChain like any other DEX’s uses the same working model, with two main groups of Liquidity providers and Traders. The liquidity providers deposit assets into liquidity pools and earn interests, while the traders swap their tokens. To make this swap work across other chains a third user group THORChain Nodes is used. These are the operators who simultaneously run nodes on other blockchains like Bitcoin, Ethereum, etc.

 Every swap on THORChain is facilitated using the RUNE token. If asset A is to be swapped with asset B, then A is swapped to RUNE which is further swapped into B. This double swapping of RUNE allows the swapping of assets in a decentralized way across non-custodial chains. Moreover, the platform which works on PoS mechanisms is secured and maintained by node operators. 

Whenever the swap is initiated, the asset is sent to a pool’s or vault’s address. Once 2/3rd of nodes confirm the address received the coins, the other asset is sent back to the user. 

THORChain Liquidity Pool

Similar to many DEX platforms, THORChain also uses an Automated Market Maker(AMM) to generate prices. The prices depend on the assets held in the respective liquidity pools which are kept reflective of the external prices. The liquidity providers deposit RUNE along with the other asset in the respective liquidity pool. In turn, they receive a part of the fee and RUNE as rewards. 

Will RUNE Price Hit $ in 2022?

RUNE price had a pretty flourishing price trend in 2021 as the asset ranged from just $0.8 to as high as $21.8 in a very short time frame. No doubt the asset fell apart and plunged heavily and drained almost all the gains to hover around $3 in no time. Interestingly, RUNE, without wasting much time, quickly rebounded with a strong intensity which propelled the price back above $17 but could not maintain the bullish trend further. 

Ever since then the asset is trending within a deep bearish well which is leaving no room for the asset to initiate with a flip. Each attempt of the asset rebounding from the downtrend is slashed, compelling it to remain within the same bearish trend. Currently, the asset is trying hard to flip from the rock bottom levels, yet the bears appear to have overpowered the bulls again as theory gets exhausted after a notable spike. 

If the asset maintains a similar trend, then the RUNE price may hit the levels between $20 to $25 by the end of the year 2022. Or in case the bull rally reignites, then an extended bull run might escort the price too high as $50 and a minimum of $45 before 2022 ends. However if the bears become active again, then the asset may woefully hoer around $10 to $12. 

Factors Impacting RUNEPrice Today

Cross-Chain Network

THORChain enables the swap not only among the assets but also among the different blockchains with ease and within the decentralized ecosystem

RUNE-The Powerhouse of THORChain

RUNE is used in almost all of the trades on the THORChain platform and hence the asset carries some other benefits too. It is used as a liquidity pair, and also as a governance token. The holders get a discount on fees too. 

Effective Approach to Liquidity

The system uses a fee that prevents slippage and lowers the chance of losing liquidity, neutralizing the risks

User-Friendly

The interface is driven by a complex combination of innovative technologies which offers frictionless swaps of the crypto assets.

Reward Structure

THORChain is a non-profit organization and hence all the funds earned in form of fees are distributed among the network participants. 

Where & How to Buy THORChain(RUNE) 

CoinDCX is the best place to invest in the crypto-assets of your choice, let it be the DeFi tokens or NFTs or any traditional crypto assets. And hence we are India’s leading and most trusted cryptocurrency exchange with a huge user base of more than 7.5 million. Registering here is very easy, just follow 3 simple steps,

  • Download CoinDCX App on your smartphone
  • Enter the required details along with your bank details
  • On bank verification, just fund your wallet and buy your favorite token. Simple!!!

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Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information, or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment, or tax advice by the reader. The calculations, data, risk-return formulations, performance, or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors, or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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