One too high expectation for Thorchain to reach $1000, Thorchain RUNE price is currently well below $100, where the price at the time of writing is $8.14.
Although this value is higher than the early March price of $ 5,408, it becomes implausible in the near term to increase to $ 1000.
The latest data refers to Coinmarketcap, Thorchain RUNE has a market capitalization of more than 2.5 billion dollars. And a circulating supply of 66% or 330,688.061.33 RUNE of the entire maximum supply of 500 million tokens.
Contents
- 1 What is Thorchain Crypto?
- 2 How does Thorchain work?
- 3 Founder Thorchain
- 4 How many Thorchain coins are there?
- 5 What is Thorchain used for?
- 6 How to stake Thorchain
- 7 Is Thorchain a good investment?
- 8 Thorchain analysis
- 9 Thorchain, where to buy?
- 10 Thorchain price prediction
- 11 RUNE/USDT market Binance by Tradingview
- 12 Final thought
What is Thorchain Crypto?
Hearing the name Thorchain might make you think, he is Thor. A fictional comic character by Marvel Comics is a god of thunder with a hammer weapon to control the weather.
But Thorchain in cryptocurrency is not the point. This is one of the Decentralized finance projects that seek to provide solutions as a cross-chain bridge that has interoperability.
Interoperability is one of the issues that require a third-generation blockchain platform solution to provide a frictionless experience and a decentralized system.
THORChain was created with the aim of being a facilitator for a cross-chain ecosystem to address these interoperability issues. Which allows users to exchange crypto assets from one network to crypto assets from another platform, all through a single protocol.
How does Thorchain work?
With a cross-chain architecture, THORChain users can exchange tokens from various networks, including Bitcoin and Ethereum with other tokens that are not on the same network.
Generally, crypto enthusiasts rely on decentralized exchanges (DEX) to exchange their crypto coins, while native networks cannot enable this operation.
To provide a solution, THORChain is present by creating an operable environment. So that through the Thornchain platform it allows users to exchange different crypto assets directly without leaving the protocol and without the need for intermediaries.
Double swapping
Meanwhile, to enable the cross-chain exchange of non-native tokens, THORChain adapts the continuous lending pools continuous lending pool protocol, which is used by Bancor DEX.
All supported crypto coins that are not network native are deposited into the liquidity pools together with the THORChain network native token, called RUNE.
If the user initiates a trade, then an exchange occurs between the two non-genuine assets. Then the system will exchange one token for RUNE automatically, then exchange RUNE for another token.
Typically these are double swapping exchanges with instant execution enabling non-custodial non-custodial exchanges on the THORChain protocol.
In other cases, users can deposit funds into liquidity pools. And other users can borrow. For this, the lender will get the result based on the amount deposited.
Liquidity pools are created by operating nodes which are also responsible for validating incentivized swaps. In its operation, the THORChain Protocol uses Proof of Stake consensus. It requires native RUNE tokens for staking.
To enable stake Validator nodes to need to bind at least 1 million RUNE.
Founder Thorchain
There is no concrete information about the founder of Thorchain. THORChain is built by an anonymous team. They have reasons to maintain the decentralized nature of all protocols.
Thorchain has no foundation, official development team, and CEO. All development team activity takes place on GitHub, which is the medium and place where new updates and improvements are uploaded.
The development team uploads the code for the network nodes. This makes the network work and then the let to the network participants. This system allows developers to focus on nodes, while nodes rely on stakes working based on the RUNE at stake.
How many Thorchain coins are there?
RUNE tokens have a limited supply, just like Bitcoin (BTC) and many others. It has a maximum supply of 500 million tokens.
Currently, 66% of all tokens are in circulation, so the remaining 31% will probably run out in the next few years.
Limited supply means no new RUNE tokens are created after the supply runs out. It acts in the economy as an anti-inflation mechanism so that RUNE can be a good long-term store of value.
RUNE
RUNE which is the native token of Thorchain acts as the heart of the protocol that operates the platform to work properly.
The functions of the RUNE token include:
- Helping to run the protocol.
- As for governance token, staking, bonding for validator nodes.
- As for trading instruments, rewards, or incentives within the system that reward node operators and stakeholders who deposit their funds into liquidity pools.
To validate one transaction requires at least 2/3 validator nodes. They must agree to secure a cross-chain bridge that supports the exchange of non-native assets. For validation, THORChain uses Tendermint which is a new type of Byzantine Fault Tolerant protocol.
Where to store Thorchain RUNE?
Users recognize three types of RUNE tokens on the market. RUNE, BEP2 RUNE or ERC20 RUNE. Of the three types of tokens, only RUNE native tokens are used in the Thorchain environment.
To store RUNE tokens, Thorchain has a wallet made for the community, namely Thorwallet and XDEFI.
Other supported wallets like Trustwallet, Keystore Ledger. For RUNE BEP2 and RUNE ERC-20, you can use wallets such as Trust Wallet, Ledger, Safepal, etc.
What is Thorchain used for?
Thorchain has four roles in its environment, the first is as a liquidity provider, by adding a system where users can add liquidity in the pool to earn fees and rewards.
The second role is as swappers, by embedding code into the system to swap the liquidity of one asset with another.
The third role of when as a market where Traders seek to make a profit by seeing the profit potential by paying a fee.
And the last role of Thorchain is as a Node Operator who provides bonds and is paid to secure the system.
Is Thorchain a Dex?
Thorchain is one of the projects in the Defi platform, it uses Automated Market Maker (AMM) to run the protocol. The products he builds are for swapping and liquidity providers.
This one includes Dex because no single entity controls the network. All work automatically by using the code in the system. For Decentralized Finance (Dex) Thorchain launches Thorswap app.
How to stake Thorchain
Thorchain uses Proof of Stake consensus so it is not possible to mine RUNE tokens. But this can stake to earn rewards.
To start staking, the first thing is to launch the Thorwsap app as in the app.thorswap.finance address. You need to connect your wallet by clicking on the link at the top right of the application page. You can use Metamask, Walletconnect, Ethereum wallet, etc in the available options.
After your wallet connects successfully, you can add in liquidity for staking or earn fees in pools. The earning calculation mechanism will also depend on the amount at stake. To become a liquidity provider with a minimum of 1000 RUNE, and to become staker, you can choose a liquidity provider.
Is Thorchain a good investment?
Thorchain, which currently has a market cap of over 2.5 billion USD, could be a great asset. If you look at the historical technical data of the RUNE token price, since 2021 it has experienced high fluctuations, indicating that market participants’ interest in token transactions has increased.
According to Wallet Investors, RUNE tokens are outstanding investments for the long term, they predict RUNE tokens will increase by +314.42%. in the next five years.
Thorchain analysis
Since March 9, 2022, the price of RUNE has shown an upward trend, from a low of $4,081, the current price at the time of writing is $7.96.
Increased price volatility is indicated by the widening of the upper band and lower band lines on the Bollinger band indicator. The price is likely to reach $8 in the near term, with the first resistance level of $10.
Meanwhile, the RSI (Relative Strength Index) indicator shows an overbought level at 74. This can be a warning of a possible reversal after the upside phase reaches the overbought point.
H1 timeframe
We get a different view on the H1 time frame. Price volatility began to decline with the narrowing of the upper and lower bands of the Bollinger band indicator. There is one candlestick there forming a long bulls candle but followed by a small candle as price consolidation.
It can be seen from the picture above that a row of bearish candles shows a decline in weak volume. Even though the price is below the middle band line which indicates a downtrend in this time frame.
While the RSI level is at 45, this is a downward trend according to the indicator. The downside target on the downside is $7,802, and the upside target is $8,202 for the short term.
Can Thorchain reach 100?
Looking at the current price of RUNE tokens below $10, it seems difficult for Thorchain to reach $100, it will require high fuel trading volume. But it might happen if there is a pump that makes the price go up to $100. Because pump and dump are still possible for assets with low capitalization.
Thorchain all-time high
The all-time high of Thorchain price occurred on May 19, 2021, at the $21.26 price level. Meanwhile, Thorchain’s all-time low occurred on September 27, 2019, at the $0.007939 price level.
Why is Thorchain going up?
The soaring price increase on Thorchain is inseparable from the platform’s fundamentals. Quoting from Coindesk, the RUNE price increased by more than 37% due to its synthetic asset trading launch.
On March 11, Thorchain launched the RUNE protocol live with synthetic asset trading on the platform. This makes it easy for users to trade assets at low cost at high speed.
Why is Thorchain going down?
After the price of RUNE reached an all-time high, the price gradually dropped to a low of $3.8595 on July 23, 2021. This decline seems to have been driven more by economic factors. When the price reaches a high point, causing market panic which then sells their assets.
When one entity sells an asset and the price falls, other investors can panic and do the same. Because we couldn’t find a definite reason why Thorchain price dropped.
Thorchain, where to buy?
RUNE coins can be purchased on Binance, Kucoin, and FTX exchanges and are available on many other exchanges where a full list of exchanges can be found on Coinecko by looking at the RUNE market. For RUNE.ERC-20 can find on exchanges Dex SushiSwap and UniSwap.
Thorchain price prediction
Digitalcoinprice forecasts Thorchain’s price to rise gradually over the years, where by the end of 2022 they forecast the price to reach $10.31. With no downside forecast, Thorchain’s price could reach $41.18 in 2031.
Wallet Investors predict RUNE is an awesome crypto asset, with forecasts it will rise in the next year to reach $12,219 and in the next five years to reach $33,377
CryptonewsZ predicts RUNE to rise slowly but steadily whereas in the 2022 forecast it reaches $6.29. The price goes up one dollar in 2023, and up 0.3 dollars in the following year, with the 2026 forecast reaching $8.38
Coinquora forecasts Thorchain in 2022 to reach $8,993, Coinquora has made extreme forecasts for Thorchain in 2026 to reach $200.
RUNE/USDT market Binance by Tradingview
Final thought
Thorchain, which is one of Defi’s projects, has an anonymous development team. However, the platform’s functionality has simultaneous public support.
Forecasting sites, on average, predict the price of Thorchain to increase gradually from year to year, although the forecasts have varying numbers.
Thorchain is unique among other Dex, which can do double swaps without using an intermediary.
Note: This article is for informational purposes only and does not constitute advice, or a solicitation of investment. Forex, crypto, CFD are risky assets, each investor is responsible for their investment.
You may like
