Weak Bullish Trend in THORChain RUNE, Despite 2 Parallel Upgrades

The THORChain network is making two parallel upgrades today, although the RUNE price remains slightly bearish on the day

Skerdian Meta•Sunday, July 31, 2022•2 min read

Nine Realms, the company building the core infrastructure on THORchain, has announced a mainnet launch. THORchain is different from other liquidity protocols, the issues with DeFi smart contracts, anonymous development, the future of THORchain, and it emphasizes that true decentralization matters. That is one of the reasons for the THORchain rune obsolescence planned for today, which would totally leave the network in the hands of its users.

THORchain is designed to be a cross-chain platform and interoperable DEX, allowing native assets such as Bitcoin and Ethereum without the need for wrapped tokens. The potential for such a protocol is almost limitless, but can it be truly and fully decentralized, and can it be secure in such a case?

Although, the network has come under scrutiny over its announcement in 2020 that the network will become obsolescence in July 2022.

THORChain @THORChain

The THORChain team have managed this by publicly signalling for Planned Obsolescence in July 2022. On that date they will be fully unvested, will have consumed the treasury and will leave the network. This is the correct way to do this.

It indicated that its treasury would be shared among 5-10 community teams for protocol and middleware development, interfaces, and education/promotion. However, that doesn’t seem to be the case, as the blockchain network is currently focused on integrating with more DEX. According to an in-depth review of its website and social accounts, the network is only looking to tighten security. It is also planning to phase out the use of rune tokens issued on Ethereum and BNB Chain.

THORChain Activates Killswitch For Ethereum And BNB Chain

Meanwhile, in a parallel development, THORChain has officially announced plans to phase out RUNE tokens issued on the Ethereum and BNB Chain blockchains.

The network informed the community of its plans to phase out two rune-pegged tokens (ETH.RUNE and BNB.RUNE). As a result of this move, THORChain activated what it dubbed a kill switch at block #tel:6500000.

THORChain Daily Chart – MAs Have Turned into Support

The native token RUNE stopped declining at around $1.50 and it has slowly been crawling higher since then, making higher highs and higher lows. Yesterday this cryptocurrency peaked above $3, reaching a high of $3.17 but has retreated lower today, so the upgrades are not having much impact on the price.

The 20 SMA (gray) and 50 SMA (yellow) are supporting the RUNE coin

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.