THORChain’s $219M Trading Volume: A Bullish Signal for the Future?

• THORChain’s daily trading volume has rebounded significantly, signaling renewed investor interest.
• The successful resolution of the bad debt issue is crucial for unlocking THORChain’s full potential and driving price appreciation.
• A sustained increase in trading volume could trigger a significant price surge for the RUNE token.

THORChain, the decentralized cross-chain liquidity network, has bounced back with a significant surge in trading volume. This resurgence in activity is a positive indicator of the long-term health of the THORChain ecosystem and could lead to a significant price increase for the native RUNE token.

The recent increase in trading volume indicates that investors are regaining confidence in THORChain’s future. However, the successful resolution of the bad debt issue is essential to unlock the full potential of the network. A clear and comprehensive plan for addressing this issue will be essential for restoring investor confidence and driving further growth.

Following its impressive rebound, RUNE gained approximately 30% from its low point this week. The recent panic selling, triggered by the platform’s halt of its savers/lending protocol, appears to have subsided. Ironically, the increased attention to the problem may have spotlighted THORChain’s significance as one of the most widely used swapping protocols in the crypto space.

THORChain's $219M Trading Volume: A Bullish Signal for the Future? 3

With over 86,000 transactions and $219 million in swaps in the past 24 hours, RUNE is demonstrating resilience and a strong community following.

THORChain Echoes Bitcoin’s Bear Market

Notably, RUNE’s current price action shares a strong similarity to Bitcoin’s 2019-2021 bear market. The recent sharp decline mirrors the COVID crash, marked by a potential period of consolidation followed by a significant breakout. Just like Bitcoin during a bear market, RUNE appears to be forming a descending triangle pattern, which historically indicates a period of accumulation before a bullish breakout.

This analysis highlights the potential for a significant price increase in RUNE, similar to the bullish breakout that followed Bitcoin’s 2019-2021 bear market.

THORChain announced halting loans and savers for not more than 90 days. The move was aimed at stabilizing its network and protect liquidity providers (LPs). While swaps remain fully operational, the team stressed the need for a community-driven proposal to revamp its economic structure.

Once a viable solution for the bad debt issue is implemented and accepted by the community, THORChain is poised for a significant resurgence. The increased trading volume could serve as a catalyst for a price surge, potentially unlocking significant value for early investors.