The crypto market has been one of the hottest topics of conversation, especially among investors. There are a few pillars that are in everyone’s portfolio, but there are also a few plays that everyone is wondering about. That is where THORChain comes in.
Everyone is speculating on a THORChain price prediction, but what does the future hold for this decentralised multi-currency protocol? Read on to find out more about THORChain, its native RUNE token, and why it may very well be a viable investment now and in the near future.
What is THORChain (RUNE)?
THORChain acts as a multi-currency protocol. It has cross-chain architecture that gives users the ability to swap tokens across a variety of networks like Ethereum and Bitcoin with other tokens that aren’t on the same network.
As a decentralised exchange, THORChain is able to create an interoperable environment that gives users the ability to swap out their cryptocurrencies without having to leave the protocol. More importantly, there is no need for an intermediary. This gives greater liquidity to supported cryptocurrencies while allowing users to earn a yield by depositing into liquidity pools.
Who are the Founders of THORChain (RUNE)?
The team behind the creation of THORChain remains anonymous. The purpose of behind that was to maintain the decentralised nature of the protocol itself. For that reason, there isn’t officially a dev team, a CEO, or even a foundation.
The project’s creator remains completely anonymous and the team uploads code that makes the system more valuable and the network more functional. Running on Nodes, the network depends on its bonders (stakers) to provide necessary functions. More importantly, swappers on the exchange market pay for borrowed and exchanged amounts, ultimately keeping the protocol’s economy alive and well.
What Makes THORChain (RUNE) Unique?
Perhaps the thing that makes THORChain unique is that it has a very effective approach when it comes to liquidity. Using a fee to prevent slippage while lowering the chances of losing liquidity, the system neutralises the risk of impermanent loss.
THORChain also has a user-friendly interface, primarily driven by several innovative technologies that make it possible to exchange several kinds of cryptocurrencies across a number of blockchains.
Finally, the organisation itself is non-profit. The anonymous team keeps none of the RUNE funds that are used for fees. Instead, it distributes all fees used for the protocol back to network participants. THORChain also allows users to swap out tokens from major platforms like Binance Smart Chain, Bitcoin, Ethereum, Litecoin, etc. nearly instantly.
How Many THORChain (RUNE) Coins are There in Circulation?Are
When it was created, the maximum supply of RUNE tokens was set at 500 million. Since its distribution, there have been more than 425 million RUNE tokens released to the public in some way or another with no timetable for the remaining 75 million to hit the market.
It is important to remember that the total number of tokens in circulation can change. More and more protocols are implementing token burning. The reason for token burning is to provide greater rarity for the token, reducing the total number in circulation. Though THORChain has not implemented token burning, it has become common enough that it may happen in the future.
How is the THORChain Network Secured?
In order to secure the THORChain network, a Proof of Stake protocol is used. Additionally, there is Tendermint, a Byzantine Fault Tolerance (BFT). The network itself is built on Cosmos SDK, which in turn runs on the aforementioned Tendermint. Tendermint is able to secure cross-chain bridges by ensuring not only the validity of Nodes, but all of the operations on the network.
The BFT Proof of Stake mechanism is able to oversee at least 100 Nodes, all of which act as validators for network operations and transactions all with instant finality. This system is also capable of monitoring the activities of Nodes and tracking any potentially malicious Nodes. If a Node is found to be malicious, it is penalised. Nodes that uphold security on the network are rewarded.
THORChain Ecosystem
The THORChain Ecosystem is home to more than 70 different apps and services. The THORChain Block Explorer allows users to view meaningful THORChain data all in one simple location. Combined with RuneScan, which analyses and inspects the state of the network, these powerful tools allow for proper management of the network.
Those are just two examples of the many applications hosted on the THORChain network. As more developers continue to flock to the network, the ecosystem only continues to grow. Its ability to exchange cryptocurrencies across a variety of platforms will remain an attractive selling point for users.
FAQs
When did THORChain launch?
THORChain initially launched in June 2019 with a total token supply of 1 billion, which was pre-mined. Its IDO followed, and THORChain allocated 20 million to those who purchased RUNE.
What is the history of THORChain?
THORChain began as a whitepaper in July 2018, created with the purpose of creating a decentralised exchange which allows users to exchange crypto without an intermediary. On June 19, 2019, it was launched as a BEP-2 token with a total supply of 1 billion. Its first public testnet was in June 2020, with the Multichain ChaosNet to follow in April 2021.
What is RUNE used for?
RUNE has three primary uses. For starters, it is used to bond (stake) to the network. This is how node validators are created, and it gives them the ability to create pools and validate swaps. RUNE is also used in swaps and as a form of liquidity. Finally, it acts as a reward for RUNE holders and allows them to participate in voting on the network, including delisting pools or adding new assets.
What is RUNE bonding?
Bonding RUNE is similar to staking other tokens. Holders of RUNE bond it as collateral in order to become a validator node operator. These node operators are another means of security for the network. Node operators must always have at least twice as much RUNE bonded as there is RUNE pooled in order to ensure that the protocol remains solvent.
How do network consensus and validation work on THORChain?
In order to secure the THORChain network, a modified Byzantine Fault Tolerance (BFT) mechanism is used. The BFT is quite resilient against attacks, and the validators on the network, required to bond RUNE tokens, also act in the best interests of the network to keep it safe and running securely.
How to buy RUNE?
The best way to purchase RUNE is through an exchange. There are a variety of centralised and decentralised exchanges available that carry the token. Simply sign up, open a wallet, fund that wallet, and make your purchase of RUNE.
Is now a good time to buy THORChain?
RUNE has fallen drastically in price from its all-time high, but experts are bullish on the crypto token. Some experts foresee a steady 5% growth rate over the next five years, which would take it to about $2.65 per token in 2030. Though things can change for the crypto marketplace, buying RUNE now would be a solid move.
What affects the THORChain price?
The challenges to THORChain’s price are not necessarily unique to the platform. Like other cryptocurrencies, RUNE is subject to three things: DeFi adoption, protocol growth, and market dynamics. As the platform continues to grow, it gains more users and becomes a more prominent force. The more users adopt decentralised finance (DeFi) platforms, the more attractive THORChain becomes. Finally, THORChain has to deal with inherent volatility that is present in the crypto mark.
What is the highest and lowest price for THORChain (RUNE)?
Like other cryptocurrencies, RUNE has experienced many steep rises and drastic falls. Its all-time low price of $0.008513 is in the rearview mirror, occurring around its launch. In May 2021, RUNE would achieve its all-time high price of $20.87.
What is the market cap of THORChain (RUNE)?
The market cap of a coin is determined by taking the market value of a token and multiplying it by the total number of tokens in distribution. With a market price of $1.25 per token and more than 350 million RUNE tokens in distribution, the market cap of RUNE is more than $438 million presently.
How has the RUNE price changed over time?
Since its launch in 2019, RUNE has seen big highs and major lows. In May 2018, it rose to more than $17 per token, eventually seeing a massive fall to below $4 just two months later. It would experience several spikes through 2024 before eventually settling at just over $1 per token.
