THORChain’s (RUNE) price has staged a major comeback, rising 26% yesterday after a week of steady gains and recording a total increase of 51% over the past seven days. In recent days, THORChain has been one of the networks attracting intense attention from crypto enthusiasts.
At the time of writing, RUNE is trading at $5.57 after reaching an intraday high of $5.77 and a low of $5.25.
What is THORChain (RUNE)?
Before examining the drivers behind the recent RUNE price surge, it helps to review what THORChain actually is. THORChain is a decentralized liquidity protocol that enables users to swap cryptocurrency assets while retaining full custody of their funds. Its native token is called RUNE.
Why is THORChain (RUNE) rising?
Several factors are contributing to the current RUNE price rally. Two prominent drivers are the integration with Terra and efforts to remove intermediaries.
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Terra integration
In a tweet posted on Tuesday, March 1, 2022, THORChain announced that its Terra integration is ready for public release. Terra smart contract auditors are collaborating with THORChain developers to make sure the integration is fully operational before the mainnet launch.
Once integration is complete, users on THORChain-integrated chains will be able to swap stablecoins and LUNA tokens. THORChain is also developing DeFiSpot, a decentralized multichain platform built on top of THORChain, which is slated to debut alongside the Terra integration.
Beyond the integration news, THORChain-integrated chains have recently produced strong yields. The project is offering enhanced APYs that, according to current figures, allow users to earn roughly 17% on Bitcoin, 19% on native Ethereum, and 60% on Binance USD, making liquidity provision and yield strategies more attractive to participants.
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Eliminating intermediaries
THORChain is also focused on removing middlemen to enable direct cross-chain asset transfers. By facilitating permissionless swaps and custody-preserving trades across different blockchains, THORChain aims to reduce friction, lower reliance on centralized bridges and custodial services, and improve the overall efficiency of asset transfers.
Combined, the Terra integration, improved yield opportunities and the protocol’s push to cut out intermediaries have strengthened market sentiment around RUNE. If these developments continue to progress on schedule and attract more liquidity, they could support further adoption and price momentum for THORChain in the weeks ahead.