RUNE Price Drops Despite THORChain (RUNE) Hard Fork Upgrade

THORChain, a decentralized exchange platform based on Cosmos technology, carried out a major hard fork on September 4. This highly anticipated upgrade was aimed at improving system efficiency and strengthening the robustness of the decentralized exchange (DEX).

THORChain, a decentralized exchange platform built on Cosmos technology, underwent a major hard fork on September 4.

This highly anticipated upgrade aimed to enhance system efficiency and bolster the robustness of the decentralized exchange (DEX).

Reminder: Software upgrade is scheduled tomorrow, September 4th at 4pm EDT

Countdown: https://t.co/EZW2keRu3V

No need for any user to perform any action

Validators should be online to upgrade. Interfaces, exchanges, and wallets should be prepared. Details below & on discord https://t.co/TftVqiJKpV

— THORChain (@THORChain) September 3, 2024

However, despite the fanfare surrounding the update, the price of RUNE, THORChain’s native cryptocurrency, has taken a substantial hit.

Since reaching highs in March, RUNE has seen an approximate 70% decrease in value and continues to show a downward trend.

According to CoinMarketCap, THORChain (RUNE) is currently trading at $3.68.

It has seen an increase of 1.66% in the last 24 hours, though a drop of 9.90% over the past 7 days.

Despite these short-term losses, the token has registered a 16.11% increase in the last month.

The daily chart analysis suggests that RUNE price is following a downward trajectory, with immediate support located near $3 and resistance around $5.

Traders and analysts are keeping an eye on how prices react at these critical levels.

If buyers manage to gain control, there could be a possibility of recovery in the coming months, though RUNE’s future performance will be largely influenced by market factors and how the broader cryptocurrency market unfolds.

The decentralized finance (DeFi) market also saw a slowdown after expanding in the first quarter of 2024.

While the total value locked (TVL) across all DeFi protocols is over $80 billion, THORChain has seen a decline in its TVL, dropping from $396 million in May to just over $266 million today.

This contraction in the value locked reflects a tightening in the DeFi market and could be contributing to the pressure on RUNE’s price.

Impact of the fork on THORChain

Despite the present difficulties, THORChain is continuing to advance with its upgrade.

The recent fork included notable improvements to system efficiency, such as upgrading the Cosmos SDK from version 45.1 to 45.16, and removing redundant modules to optimize performance.

Additionally, support for Bitcoin Taproot addresses was introduced, enhancing interoperability with the Bitcoin mainnet.

The THORChain ecosystem remains active and strong, despite the drop in prices.

Recently, on September 1, the platform facilitated the largest trade in its history, handling an $8 million transaction worth of BTC for USDC, generating $26,000 in fees.

This event showcases how THORChain continues to play a vital role in the cryptocurrency space and maintaining its relevance despite unfavorable market conditions.

Although the THORChain fork was meant to enhance the platform and address efficiency concerns, the impact on RUNE’s price has been adverse.

Continued market pressure and contraction in locked value present challenges for the broader DeFi ecosystem.

However, technological improvements and activity on the platform could set the stage for a possible recovery in the future.

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