What is THORChain? Onchain Data Analytics – THORChain (RUNE)

• Thorchain (RUNE) Overview
• Onchain Analysis THORChain (RUNE)
• Daily Transactions
• Number of wallet addresses
• RUNE number is locked
• Token Staking
• THORChain product on-chain data - Thorswap
• Identify

THORChain not only provides a single protocol, but the project also provides a complete ecosystem. This aims to solve all the aforementioned problems with the current digital asset market such as lack of liquidity and the potential for large price fluctuations of the market. By using the chain-agnostic bridging protocol throughout the ecosystem, THORChain can support any existing digital assets.

Thorchain (RUNE) Overview

THORChain is an independent Blockchain and is built on Tendermint consensus protocol and Cosmos SDK . It operates as a decentralized cross-chain exchange (Cross-Chain Decentralized Exchange DEX). THORChain uses an automatic market creation model (AMM) similar to other AMM DEX exchanges such as Bancor, Uniswap… to facilitate the swapping of native assets between different Blockchains in a manner unattended (non-custodial). The protocol uses a cross-chain bridge (Bifröst protocol). The Bifröst protocol acts as a connection layer between the THOR network and other Blockchains such as Bitcoin, Ethereum, etc.

Its job is to monitor addresses for incoming transactions and then convert them into THORChain witness transactions. At that time transactions transferred from other Blockchains will be recorded on THORChain and from here will send to different Blockchains. 

Normally cross-chain transactions will use Wrapped or pegged-token But with THORChain, the project does not need such wrapped tokens. The project will create continuous liquidity pools as described below. 

Through this special Pool model, the Thorchain project has attached the value of RUNE token to the development of the project:

• Provide liquidity in the Pool at a ratio of 50:50. So if you want to provide BTC liquidity, you need to buy a corresponding amount of RUNE. The higher the TVL (Total Locked Value) on Thorchain, the more RUNE can be purchased.
• To ensure security, Thorchain requires Nodes to Stake twice as much RUNE as RUNE in the Pool, so when the demand for liquidity increases, the demand for RUNE will double.

RUNE is the Utility token BRP-2 (utility token) in the THORChain platform used for the following purposes:

• Staking: Users will use RUNE tokens to stake and become part of the Validator Set.
• Transaction Fee: The RUNE token is used to pay transaction fees in the THORChain network.
• Token RUNE is also used to pay liquidity fees, bridge fees, etc. when using THORChain's services.
• In addition, RUNE is also used as a reward for Validators, encouraging users to be active and stake more.

Basic information:

• Token Name: THORChain Token
• Symbol: RUNE
• Blockchain: THORChain
• Token Type: Governance, liquidity…
• Maximum total supply: 500,000,000 RUNE
• Current total supply: 334,937,975 RUNE
• Circulation supply: 330,688,061 RUNE

Token Allocation

Tokens of the project will be allocated as follows:

• Liquidity: 44%
• Presale: 14%
• Operational Reserve: 13%
• Community: 12%
• Team: 10%
• Seeds: 6%
• IDO: 4%

Onchain Analysis THORChain (RUNE)

Some onchain indicators

THORChain price on 22/01/2022 is 4.3 USD. THORChain is down 12.51% in the last 24 hours. CoinMarketCap currently ranks 66th, with a market cap of $1.3 billion. The circulating supply is 330,688,061 RUNE and the maximum total supply is 500,000,000 RUNE.

Since the beginning of November until now, the price of RUNE has dropped by nearly 75% from 16.5 USD to 4.3 USD due to profit taking behavior. After that, the market fell into a "red candle" situation that pulled the price of RUNE down. 

Thorchain's weekly technical chart shows a bearish trend in the coming days. On the daily chart, RUNE price is showing a bearish momentum. It is currently trading below the moving averages. RUNE's 100 MA is close to $7 making it an area of ​​"temporary contention". In case the value breaks above the 100 MA, an uptrend can definitely be seen in the future. The RUNE price may also indicate a strong uptrend in the future. However, if the downtrend continues, it can drop to the $3 level. 

Daily Transactions

The number of daily transactions in the most recent week fell between 400,000 – 760,000 tx (+90%). This figure had a slight increase at the end of January 21, 2022. TVL and trading volume on Thorswap are still low, only 1/1000 of major DEXs, but both indices are still in a very stable uptrend.

Number of wallet addresses

Although the number of transactions increased, the number of addresses did not increase. What can explain the price closing action of investors. The number of new wallet addresses in the past week fluctuated between 190 – 270 wallets.

RUNE number is locked

Currently, 57% of RUNE tokens are locked. In there:

• 6.08% in Pools
• 11.354% active nodes
• 0.885% standby node 
• Total reserve accounts for 38.498% 
• And only 0.01% for standby pools

Currently more than 43% of tokens have been unlocked, the remaining RUNE will not be much and will become rarer over time.

Token Staking

The number of RUNE – Holders participating in token staking over the past 30 days witnessed a rapid growth in mid to late December as the number of delegation addresses increased from 6,154 to 6,537. After that point, the number of addresses has decreased and is now "sideway" with an average fluctuation of 6,366 addresses. However, compared to the previous months, the number of addresses has decreased significantly due to market factors.

On-chain data about THORChain products – Thorswap

ThorSwap is a decentralized crypto asset exchange exchange platform with advanced technology, decentralized governance and thriving global ecosystem, currently the exchange supports 40 crypto assets. In the future, it is designed to support more than 1,000 crypto assets.

Trading volume on Thorswap since it was launched has increased from 1 million USD to a peak of 47 million USD on 11/03/2021 and is averaging 10-20 million USD/day. If compared with other decentralized cryptocurrency exchanges such as Uniswap or Pancakeswap with a volume of up to billions of USD per day, it is still quite a modest number. However, Thorswap is still developing very stably and sustainably. 

Thorswap's liquidity also increased strongly in the period between October and early November from 174 million USD to 406 million USD. This proves that the need to provide liquidity for RUNE is very large. However, after that point, Thorswap's liquidity needs fell by nearly 165%. And now the liquidity is around 150 million USD.

Identify

If THORChain's solution works effectively and is adopted by many people, it will significantly contribute to stabilizing and balancing the price of the market. That will make the market gradually accept digital currency as a payment method for mainstream transactions. With the launch of the Thorswap product, the project created a huge buzz.

In the future, THORChain is aiming for the widespread deployment of a payment network, allowing cryptocurrency payments between customers and service providers. Therefore, many people think that THORChain will also have a very strong growth in the coming time.

At this point, TraderH4 hopes you have updated with more useful information about the project. Follow TraderH4's other project analysis here .

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