Why is the price of THORChain’s RUNE coin soaring?

The price of THORChain’s RUNE coin has been the talk of the town within the crypto space after it unleashed a Bull Run towards the end of February.

Despite the current consolidation at about $7 level, the price of RUNE has soared by 73.9% in the last seven days making it one best performing top fifty cryptocurrencies in March to date. The other coin that could be considered second on the list is the WAVES coin which has gained 40% in the last seven days.

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But why is the price of RUNE coin soaring? In this article, we are going to look at all the factors that are at play in the current THORChain’s RUNE coin price rally.

Factors behind current RUNE price rally

The current hype around THORChain and its native token, RUNE, is centered on three major developments within THORChain’s ecosystem. These include the rising interest in THORChain’s synthetic assets, THORFi rollout, and THORChain’s plans to add support for Terra (LUNA) token.

Let’s look at each of these three factors closely to establish their connection to the price rise.

• THORChain’s Synthetic Assets

Before going to the synthetic assets, it is important to first understand what THORChain is. THORChain is a decentralized liquidity protocol that allows users to swap (exchange) crypto assets across a range of networks without foregoing the custody of the assets during the process.

Therefore, THORChain users can swap tokens without having to rely on order books for liquidity. The liquidity is maintained through the ratio of assets to the various liquidity pools.

THORChain introduced the Synthetic Assets feature on March 10 and the volume for the new assets has already crossed the $200 million mark. THORChain’s synthetics (or Synths as referred to by THORChain) are used to mint tokens for assets. For instance, THORChain’s Synths users can mint tokens for assets like Tesla, Gold, and Bitcoin among others.

The catch with THORChain’s Synths is that they have half the swap fees and cheap gas fees thus making swapping cheap and faster for traders.

THORChain is currently also preparing to roll out new features as it upgrades THORFi, which is its decentralized finance (DeFi) platform.

According to sources, the upgrades will allow THORFi users to perform lending and saving on the platform.

• Adding support for Terra (LUNA) token

THORChain is also preparing to add the support of Terra (LUNA) token to its liquidity pools.

The team has indicated that adding Terra is one of the upcoming milestones on its roadmap.

It is important to keep in mind that both Terra and THORChain were built on the Cosmos SDK.

Conclusion

As THORChain expands its utility, RUNE is benefiting by gaining value against the odds of the larger crypto market where majority of coins have either traded sideways or dipped over the last two weeks.

If RUNE breaks past the current resistance level at around $7, analysts expect it to surge towards $9 or even $12.