Why is the Thorchain (RUNE) price up?

RUNE, the cryptocurrency native to the decentralized liquidity protocol THORChain, has seen a remarkable 10% increase over the last 24 hours, moving independently of the overall market direction. Why is RUNE price rising? Let's take a look.

How has the Thorchain (RUNE) Price Moved Recently?

Currently, THORChain is priced at $6.00, with a 24-hour trading volume of $730.53 million, a market capitalization of $2.01 billion, and a market dominance of 0.09%. Over the past 24 hours, the price of RUNE has increased by 5.85%.

THORChain achieved its highest price on May 19, 2021, reaching an all-time high of $20.98. Its lowest price was recorded on September 11, 2019, at an all-time low of $0.007620. Since its all-time high, the lowest price observed was $0.778946 (cycle low), and the highest RUNE price since the last cycle low was $11.43 (cycle high). Currently, the sentiment for THORChain price prediction is neutral, with the Fear & Greed Index at 55 (Greed).

The circulating supply of THORChain is 335.58 million RUNE out of a maximum supply of 500.00 million RUNE. The current yearly supply inflation rate is 2.97%, resulting in approximately 9.69 million RUNE created in the last year.

Why is RUNE Price UP?

The recent surge in THORChain's (RUNE) price can be attributed to several key factors outlined by the CEO in a recent thread. First and foremost, the emphasis on providing a secure and yielding environment for assets to enhance Total Value Locked (TVL) is crucial. By prioritizing security and yield, THORChain aims to attract more liquidity and increase its TVL, which ultimately boosts investor confidence and drives up the demand for RUNE.

Addressing user experience (UX) issues related to liquidity provision is another significant driver behind the price increase. By improving UX, THORChain enhances accessibility and usability, making it more attractive for liquidity providers to participate in the ecosystem. This improvement in usability can lead to increased liquidity and trading volume, positively impacting RUNE's price.

Moreover, the CEO highlighted the importance of protecting TVL economically, functionally, and procedurally. Implementing measures such as $bond for economic protection, node tools for functional security, and rigorous testing and staging through THORSec for procedural security demonstrate THORChain's commitment to safeguarding assets and enhancing overall system integrity. This commitment to security and risk management fosters trust among investors and contributes to the upward trajectory of RUNE's price.

In terms of monetization, the revelation that THORChain must generate revenue from TVL to cover yield and security expenses underscores the importance of maximizing the number of swaps. Increased swap activity directly correlates with higher revenue generation, enabling THORChain to sustainably support yield and security measures. As the platform attracts more users and facilitates a higher volume of swaps, the demand for RUNE increases, thereby driving up its price.

Looking ahead, continued efforts to prioritize security, enhance user experience, and maximize revenue from TVL through increased swap activity will likely contribute to sustained growth and potential further price appreciation for THORChain's native asset, RUNE.

The significant increase of 405% in THORChain's (RUNE) price over the past year reflects strong performance and growing investor interest in the project. Outperforming 85% of the top 100 crypto assets within this period underscores RUNE's standout performance and resilience within a competitive market landscape. 

Notably, RUNE has also surpassed Bitcoin and Ethereum in terms of returns, showcasing its potential as an attractive investment option. Trading above the 200-day simple moving average indicates a sustained bullish trend, suggesting continued upward momentum in the foreseeable future. Moreover, the positive performance compared to its token sale price signifies value appreciation and investor confidence. With high liquidity supported by its substantial market cap, RUNE offers ample trading opportunities and maintains investor trust, positioning it favorably for further growth and potential price appreciation in the coming months