Could THORChain’s mainnet launch invalidate RUNE’s bearish streak

THORChain [RUNE] has finally rolled out its native blockchain network which has been in the works for more than four years. The RUNE cryptocurrency, which will be native to the new blockchain, registered a healthy uptick in the days leading up to the launch.

The network marked the launch with a publication wherein it provided relevant information regarding the scope of the mainnet. It described the network launch as an important milestone that will allow THORChain to achieve its cross-chain incentivized liquidity goals.

Furthermore, THORChain also highlighted its commitment toward rapid growth with the mainnet launch as the first major step. The protocol revealed that the next step towards that goal will be to pursue RUNE’s listing on multiple exchanges. Such listings will enable easier access to RUNE, in line with growing demand.

Excited bulls

The THORChain mainnet launch had a positive impact on RUNE’s price action. RUNE traded as low as $0.058 on 18 June before embarking on a bullish trajectory. At press time, it traded at $2.32 after a 36.52% rally in the last seven days and a 7.73% uptick in the last 24 hours.

Source: TradingView

Crypto projects often experience increased demand for their native cryptocurrencies days ahead of a major event. This was the case for RUNE considering its latest price action. However, the token is still trading at a significant discount courtesy of the bear market which has been going on since Q4 2021.

RUNE’s recent price action reflects strong demand from investors looking to capitalize on the growth opportunities that will come with the mainnet. Strong market cap growth provides a rough overview of the demand that RUNE experienced in the last week or so. Its market cap was as low as $481.2 million on 18 June but it had grown to $731 million on 24 June.

Source: Santiment

RUNE’s market cap growth was also directly correlated to an uptick observed in its social dominance metric. It reflects the strong chatter regarding the mainnet launch on social platforms. The metric grew from 0.024 on 18 June to as high as 1.44 as social mentions of the mainnet launch peaked.

RUNE’s price and market cap increase also reflect notable accumulation at recent lows. The supply held by whales metric hit a monthly low at 44.45% on 16 June. It increased significantly since then, climbing to 44.81% by 24 April.

Source: Santiment

Although the mainnet launch had a positive impact on RUNE’s demand and price, the upside has been limited, likely due to the volatile market conditions. However, the mainnet should provide robust value in the long term.