In the past three months, the price of Thorchain (RUNE) has tripled, and analysts believe there are strong fundamentals driving this performance.
Can Gurel, a cryptocurrency researcher from the prominent blockchain analytics firm Delphi Digital, has pointed out key operational factors contributing to RUNE’s impressive run in a bearish market.
Impressive Run for Thorchain (RUNE) Fueled by Fundamentals
On November 4, 2023, Thorchain (RUNE) achieved a remarkable milestone by surging to $3.46, a level not seen since May 2022. Can Gurel, a researcher at Delphi Digital, attributes RUNE’s impressive 3x rally over the last 90 days to strong fundamentals rather than mere narratives.
One of the critical drivers of Thorchain’s success has been liquidity fees, which serve as the “lifeblood” of its economic model. In October 2023, these fees came close to revisiting their all-time high, indicating robust health in the Thorchain ecosystem. Interest in the protocol remains high, and it’s possible that a new all-time high for liquidity fees could be achieved this month.
Furthermore, liquidity fees now represent a record share of the total protocol revenue, especially when combined with block rewards. The number of unique users participating in the Thorchain ecosystem for asset conversion has also reached a record high.
Thorchain’s reputation as a superior exchange option compared to some centralized exchanges (CEXes) has led to a surge in liquidity injections, surpassing records set back in April 2022.
Strong Fundamentals Driving Thorchain (RUNE) Surge
Two critical supply metrics for RUNE point to the pivotal role of fundamentals in the ongoing price surge. Can Gurel highlights that the amount of bonded RUNE, which is temporarily removed from speculative circulation, is approaching an all-time high.
Additionally, a significant milestone has been reached with the volume of Savers, which are single-sided liquidity instruments on Thorchain (RUNE), exceeding $40 million for the first time ever. With all these factors combined, the ongoing surge in RUNE’s price is fundamentally driven, according to the researcher.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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