RUNE, the native token of the cross-chain decentralized exchange, THORChain, is under pressure. From the daily chart, the token is down nearly 60% from May highs and remains flat even as the broader crypto market recovers.
Even as RUNE flatlines, there is confidence that prices may rally in the coming days primarily because of fundamental factors and efforts made by the development team.
THORChain Revenue Rising After Swap Fee Increment
In a post on X, one analyst noted that THORChain has nearly doubled its revenue in the past two days following the community’s decision to increase the minimum swap fee on the DEX.
Recently, THORChain node operators approved and implemented a proposal to increase the swap fee for layer-1 native exchanges to 0.05%. The seemingly minor change, the analyst notes, has profoundly impacted THORChain’s protocol, increasing daily revenue by nearly 100%.
Interestingly, the analyst noted that while fee increments in protocol tend to impact user experience negatively, it had the opposite effect on THORChain. While the swap fee rose, users were not deterred. Instead, swap volume steadied while the average fee from every transaction surged.
As transaction fees rise, weekly liquidity fees on THORChain now exceed block reward, a major milestone for the DEX. Notably, the significant shift in revenue generation would further drive the RUNE burning rate once ADR 17, a community proposal, is implemented in the coming days.
The more RUNE is taken out of circulation, the scarcer the token becomes, lifting prices higher. Once ADR 17 is implemented, the protocol will buy and burn $1 worth of RUNE for every $10,000 revenue generated. For this reason, rising revenue due to the swap fee increase means more RUNE will be torched.
Impact Of RUNEPool On Liquidity: Will RUNE Break $5?
In late July, THORChain also introduced RUNEPool to help further incentivize liquidity provision. Users can freely deposit their RUNE via THORSwap and THORWallet interfaces into a pool of diversified tokens through this feature.
In this way, they help reduce the risks of impermanent loss while increasing liquidity. As of August 9, over 3.7 million RUNE have been deposited by 265 liquidity providers into the RUNEPool.
Despite these changes, RUNE remains under immense selling pressure, although it is steady at press time. Following the bear breakout in early August, pushing prices below July lows, the token has struggled. However, if there is a recovery from spot rates to above July highs of around $5, the coin might surge to over $7.5.
Feature image from iStock, chart from TradingView
Dalmas Ngetich
Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.
His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn’t just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.
His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.
Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.
Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.
DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn’t a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.
Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa’s full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.
Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.
When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
