One crypto currency observed by many crypto enthusiasts is THORChain (RUNE): The coin wants to tackle the problem of “impermanent loss” known in the DeFi area and uses various new technologies for this. We introduce RUNE and say among other things: What is THORChain? What distinguishes THORChain? Who founded THORChain? What do traders and analysts think of THORChain? And: What are the THORChain forecasts for 2021 to 2028?
What is THORChain (RUNE)?
THORChain is a decentralized liquidity network. It enables cross-chain liquidity pools without pegged or wrapped tokens. This means: Users can exchange cryptocurrency assets such as Ethereum (ETH) or Solana (SOL) across different networks – without the need for order books to obtain liquidity. Similar to uniswap or sushi swap.
The platform’s native utility token is RUNE. RUNE acts as the basic currency in the THORChain ecosystem, is also used for governance and ensures the security of the platform. THORChain nodes must transfer at least 1 million RUNE to participate in the consensus process. RUNE is currently available on both Binance Chain (as a BEP-2 token) and on Ethereum (as an ERC-20 token).
What are liquidity providers (LP)?
To understand THORChain, it helps to know the term “liquidity provider”. Liquidity providers make their assets (e.g. Ethereum) available – and receive remuneration for them. Similar to interest on savings on the bank account. The assets are then added to so-called liquidity pools, which so-called swappers in turn use to swap assets. The attraction for liquidity providers: They receive returns on their cryptocurrencies such as Bitcoin, Ethereum, Binance Coin and others. A special feature is that liquidity is offered in pairs. In other words: You not only provide 2 ETH, but also RUNE with the same value (ratio 50:50). And you will be rewarded for this as soon as you withdraw your assets from the liquidity pool.
What distinguishes THORChain?
THORChain has developed a system to tackle the problem of “impermanent loss” found in the DeFi area. Impermanent loss occurs when the price of a coin changes compared to the price at which it was paid into the liquidity pool. The greater the change, the greater the loss. THORChain would like to reduce these possible losses with a fee system.
In addition, THORChain combines various technologies to enable seamless cross-chain token exchange. However, the magic happens “behind the scenes” – the interface is understandable and easy to use even for beginners.
THORChain is not for-profit, nor do developers receive any commission. All fees are issued to the users.
In addition, according to the developers, THORChain offers the following innovations:
- Complete transparency about the liquidity and logic of the entire network
- Distribution of the risk to the 99 THORNodes
- Approval-free access to global liquidity
- Tamper-proof pricing
- Always-on deterministic liquidity for all assets
- Common incentives for all participants
- Non-custodial staking of assets
- On-chain swaps without pegged tokens
What is THORSwap?
THORSwap is the world’s first Multichain DEX (similar to Uniswap or Sushiswap) in the THORChain network. It uses a front-end user interface to perform cross-chain swaps. There are no assets behind it – it’s purely native. Here you can use THORSwap.
Who founded THORChain (RUNE)?
The founders of the cryptocurrency are anonymous. Most of the developers are also unknown. The project’s Twitter account is likely to be the “most official” spokesman for THORChain. He says: anonymity protects the project.
Because: THORChain can only be successful if it is sufficiently decentralized. To achieve this, the following aspects must be guaranteed:
- The nodes must be anonymous
- Stakers may only be controlled by incentives
- Developers have to switch
The developers work for the nodes by providing code that makes the system more valuable. Nodes work for the stakers by securing assets and being online. Stakers bring capital that is placed in the market for the swappers. And the swappers pay fees and thus ensure economic activity.
The official THORChain Twitter account explains:
“THORChain has no CEO, no founder, no directors.
There are some leaders (project, technology, research), but these roles will dissolve. The developers know what to build. They organize themselves via Gitlab, where you can view them at any time. “
THORChain has no CEO, no founder, no directors.
Whilst there are some leads (project, tech, research), these roles will dissipate.
Developers know what to build. They are self-organized through Gitlab, where you can review at any time: https: //t.co/HjmRapwexr
– THORChain #BRINGBACKMCCN (@THORChain) November 24, 2019
This is the only way to create a valuable and neutral protocol for the transfer of values, writes the project. It should be noted, however: THORChain was originally financed in 2019 through an Initial DEX Offering (IDO) on Binance. The mainnet went live in January 2021.
What do traders and analysts think of THORChain (RUNE)?
Many industry participants are positive about THORChain and certify the coin has a very promising future.
I love $ RUNE https://t.co/zMhbrqdhLq
– Charlie (@btc_charlie) August 23, 2021
Scott Melker, for example, expects RUNE to rise to $ 14 soon. This is what the popular trader suggests in a new tweet.
Almost there. pic.twitter.com/YuYjLH5K3d
– The Wolf Of All Streets (@scottmelker) August 23, 2021
Trader colleague “Altcoin Sherpa” sees it similarly: He also expects an increase to 13.50 dollars in the short term.
– Altcoin Sherpa (@AltcoinSherpa) August 23, 2021
“Venture Coinist” Luke Martin is bullish on RUNE, because: If chains like Avalanche, Solana and Ethereum are successful, RUNE also benefits – after all, the project connects different chains with one another. Martin:
“RUNE is in the unique position of being bullish if something positive happens for EVERY chain as it increases the likelihood of a multichain future.
-Visa buys NFTs, bullish for ETH & RUNE
-Defi flourishes at AVAX, bullish for AVAX & RUNE “
$ RUNE is unique spot where it’s bullish if something positive happens for ANY chain as that increases likelihood of multichain future.
Good to see a strong recovery after hacks. pic.twitter.com/r2SDUeBkrm
– Luke Martin (@VentureCoinist) August 23, 2021
THORChain (RUNE) forecasts for 2021 to 2028
At the moment (time of this analysis), RUNE is quoted at $ 11.20, traders expect it to rise to over $ 13 in the short term. Is it possible to return to the all-time high? That’s $ 21.26. What do the popular forecasting models for RUNE predict?
- CoinCodex.com is generally bullish on THORChain: Accordingly, 25 technical analysis indicators signal bullish signals, compared to only 6 bearish signals.
- WalletInvestor.com considers THORChain (RUNE) to be an excellent long-term investment. According to the forecast, RUNE will initially rise to $ 19.54 within the next 12 months. In the next five years, THORChain is predicted to rise to $ 52.38.
- DigitalCoinPrice.com expects a similar development, but not as quickly: Here, RUNe will rise to $ 17.20 by the end of 2021. In the course of 2022, the coin will then move to $ 19.43. According to the forecast, RUNE will then double its value by the end of 2026: The coin will rise to $ 39.89. By the end of 2028, Digitalcoin Genealogie is finally predicting a rate of $ 50.28 for RUNE.
- the most optimistic forecast Gov.Capital delivers to RUNE. Accordingly, RUNE will rise to $ 25.82 within the next 12 months. Based on the current price of $ 11.20, this corresponds to an increase of a little more than 130%. Then, according to the prognosis, RUNE breaks out and starts pricing: The 5-year forecast sees RUNE rise to $ 149.46. This corresponds to a price increase of 1,234%.
Last updated on August 24, 2021
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