The THORCHain Project is one of the representatives of the DeFi industry. It caught the attention of the digital technology community by solving the problem of exchanging different blockchain tokens. Today it demonstrates excellent value growth dynamics. According to estimates, it has good investment potential. Let's take a closer look at THORChain cryptocurrency and its forecast in this review.
Description of the asset
THORCHain cryptocurrency (RUNE) is the name of both the token and the protocol of the decentralized finance sphere, where digital currencies can be aggregated and exchanged. The platform was launched in the summer of 2019. The initial launch was through an initial DEX (IDO) offering, in which it was possible to participate through the decentralized finance service Binance.
The developers of the project remain anonymous, as do founders and CEO, in order to preserve decentralization. The open source code is published on Gitlab. Support in promotion is provided by Binance. As of the end of 2021, THORChain is evolving strictly according to the stated roadmap points.
The THORChain project uses Cosmos and Tendermint technologies. With THORChain platform users can swap crypto-assets that belong to different blockchains, such as Binance Chain (for BEP-2 tokens) or Ethereum (for ERC-20 tokens). Conversion is done at market prices and with low commissions.
RUNE, the service token of the THORChain platform, serves as the base cryptocurrency of the ecosystem and management tools:
- Consensus representatives receive a third of the system's revenue.
- Consensus applicants must have an amount of 1 million RUNE locked up in a node, which in turn protects the funds of stakeholders.
- Users contribute to the liquidity pool used by the swappers, paying a commission and providing activity.
The commission is sliding, which regulates the balance of assets in the pool, and the payment itself tends to negligible values. The specific feature of the platform is a simple interface, thanks to which even inexperienced traders and depositors will be able to use the platform.
The economic model is built on a democratic principle. The developers don't block tokens for team members. They earn rewards as node holders, and all other fees are distributed among the users of the site.
This point means that the price of RUNE will not suddenly collapse the moment the "frozen" coins are unlocked for the time being and make up the market supply. In addition, holders of a RUNE token can issue other assets based on it.
Features of the platform
THORChain cryptocurrency platform has 4 products:
- BEPSwap is a DeFi platform for conversion and staking. It is an analogue of Uniswap, only it is not based on Ethereum protocol, but on Binance Chain technology. It allows you to instantly operate with BEP2 and BNB tokens.
- Flash Network is a sidechain for the rapid conversion of THORChain assets, adapted to interact with Raiden, Lightning and Bolt networks.
- RUNEVault is a pool for staking through BEPSwap to put BEP2 tokens at interest.
- Bifröst is a decentralized THORChain-type network protocol for exchanging between different blockchains.
With the listed features, investors can build portfolios, generate passive profits and make conversions between coins of different protocols.
RUNE statistics as of the end of 2021:
- Thorchain org's official website;
- Twitter and Reddit subscribers about 135 thousand;
- ranking in the top of all cryptocurrencies 60-70 USD;
- current quote range 7-8.3 USD;
- historical peak at 21.24 USD;
- current supply is 461.7 million;
- the maximum supply is 500 million coins.
The RUNE token itself circulates in the Binance Chain network (for BEP2 standard assets). It's adapted to any tokens issued in Binance networks.
At the start of 2021, THORCHain cryptocurrency was quoted at 0.8 USD, then rose to 21.24 USD. At the end of 2021, the price consolidated around 7 USD, from where a bullish momentum could follow. At the same time, there is a strong resistance at 3 USD on the chart, where it makes sense to place a limit order, as the cryptocurrency can drop, but it is unlikely to remain at such low values.
In 2022, the mood of crypto investors is expected to improve. Some of them will undoubtedly pay attention to THORCHain as an asset that has achieved a place in the top 100 cryptocurrencies by capitalization quite quickly.
Before buying, it is recommended to apply technical tools with oversold areas, while monitoring the increase in volume.
You can use greed and fear indicator or signals of aggregate indicators of technical analysis tools for a preliminary assessment, keeping in mind that lagging indicators are used in forecasts.
If the expectations for a bull market in 2022 are confirmed, RUNE quotes are likely to reach the 35 USD mark, which will bring depositors about 500%. It should be noted that such target is a bit optimistic, but the cryptocurrency demonstrates a tendency to sharp impulse increases and most likely will seek not to test the historical maximum, but to exceed it. In this perspective, the targets will be 25, 30 and 35 USD.
More distant prospects also indicate in favor of the growth of cryptocurrency THORCHain. Both the direct development of the platform and its integration with partner projects could become a driver. Therefore, we may expect the token to grow to 75-80 USD in 2024, and to 95-100 USD by 2025.
However, there are bolder predictions. It is easy to see this by looking at the cryptocurrency growth table based on the degree of correlation with some technology companies. It's worth relying on this data if it corresponds to your assessment of the development of these industries, both under the current economic situation and under the probability of the global financial crisis, stagnation, and uncertain timeframe for the stabilization.
As a whole, we'd like to note the potential of the DeFi industry as relatively independent of classic cryptocurrency market trends, where cycles depend on Bitcoin and changes in BTC mining rewards. A certain amount of co-trending is likely to occur during periods of bullish trends, short-term traders buy all assets. Nevertheless, the long-term dynamics of the RUNE coin will depend precisely on the development of DEX platforms, particularly if regulators fail to find a way to decentralize such platforms in order to prevent investors from making transactions out of government control.