THORChain Hard Forks: Why Is RUNE Down 70% And Still Dumping?

Dalmas Ngetich

Last Updated: September 6, 2024 4:30 am

3 mins read

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THORChain, a cross-chain decentralized exchange using Cosmos technology, successfully conducted a hard fork yesterday, September 4. However, while the update was highly anticipated, sellers still needed to press on, looking at the formation in the daily chart.

RUNE Slumps, Drops 70% In 6 Months

According to CoinMarketCap data, RUNE, the native currency of the THORChain ecosystem, remains under pressure, losing 12% at press time. The drop over the last 24 hours means the token is down nearly 70% from March highs and continues to trend lower.

At press time, the path of least resistance remains southwards. The immediate support lies at August lows at around $3. Conversely, buyers have resistance at approximately the $5 mark. RUNE traders can closely monitor how prices react at these levels as the coin moves sideways in a possible distribution.

RUNE price trending downward on the daily chart | Source; RUNEUSDT via Binance, TradingView — RUNE price trending downward on the daily chart | Source: RUNEUSDT via Binance, TradingView

If buyers take over, RUNE may peel back losses, possibly doubling in the coming months. The pace at which the token will expand largely depends on market-related factors and how the broader crypto market performs.

If Ethereum prices, for example, recover, breaking $3,500 in a buy trend continuation formation, it could rejuvenate the slump in DeFi. This would positively spark activity on the THORChain ecosystem, lifting sentiment and possibly RUNE prices.

DeFi Slumps, THORChain Hard Fork For System Efficiency

Overall, DeFi is flat, slumping after the expansion of early Q1 2024. According to DeFiLlama data, the total value locked (TVL) across all DeFi protocols is over $80 billion.

Ethereum remains the choice network for DeFi developers. Meanwhile, THORChain has a TVL of over $266 million, down from $396 million registered in late May.

Despite the general contraction, THORChain is actively building. The recent hard fork sought to improve user experience and make the DEX more robust. Changes made in this upgrade include the improvement of the Cosmos SDK from version 45.1 to 45.16.

Developers also remove unnecessary Cosmos modules to improve efficiency. At the same time, there were changes to the node state, increasing synchronization time. THORChain also introduced support for Bitcoin Taproot addresses, enhancing their interoperability with the Bitcoin mainnet.

Largest ever swap on THORChain | Source: @rykcrypt via X

Amid this, the THORChain ecosystem remains robust and active even as crypto prices fall. Analysts note that on Sunday, September 1, THORChain enabled the swapping of the largest-ever transaction size on the platform. On this day, the DEX helped swap $8 million worth of BTC for USDC, netting $26,000 in fees.

Feature image from Shutterstock, 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.

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