It’s been a crazy couple of weeks in crypto. It also happens that it’s been a bit over 380 days since I ventured into ThorChain. I’ll like to share my thoughts so far. Last time I wrote about this, the price of Rune was around $8 and eventually peaked around 12$. Right after, UST’s death spiralhappened and nuked the entire market. Today RUNE is worth around $2.98.
Before you invest in $RUNE, Get THIS!
Before you invest in RUNE, what no one will tell you is that when the crypto market takes a hit, RUNE shoulders the burden, Bitcoin is paired to RUNE on ThorChain, RUNE is paired to Ethereum, BNB, LTC, BCH, UST, LUNA, etc. When Bitcoin dips and the rest of the market follows what do you think happens to RUNE.
Take for a practical example UST’s death spiral that led to the dump of LUNA and outward flow of billions that took the entire market with it. Bitcoin dumped from $40k to $29k, Ethereum to sub $2k.
You can bet RUNE took the hit thrice as hard with the price falling from 12$ to $2.97. Sad reality. But also, in a bull market when most cryptos are up, you can bet RUNE will also feel the impact thrice as hard.
Interesting thing is, RUNE doesn’t have to wait till a bull market to perform well. We all saw the impact of LUNA’s integration into the system, RUNE went from sub $5-$12, remember that for every 1dollar that enters the system is backed up by 3$ worth of Rune and that’s just one of the ways in which Rune accrues value.
Thorfi is also underway(though presently on hold), Thorfi will also bring collaterized lending all in attempt to drastically and pragmatically increase RUNE’s utility.
Impact of $UST death Spiral On $RUNE
I remember my first time buying RUNE was at $3,, how time flies, at this point I currently hold 320 RUNE from 164 which I started from. If the market keeps dipping, I’ll be able to increase that amount by just sitting in the pool. Right now, I’m up in Rune but down in dollar value.
RUNE took a huge hit from UST’s failure, just as we caught a glimpse of what it’s success could have achieved. I wrote about it in this post when Luna and UST were first integrated.It was supposed to be a really cool sink for RUNE.
But to think this is the end is an aberration, to think this is the end of an attempt at creating a widely accepted successful decentralized algo stable coin is an ultimate mockery and underestimation of the combined intelligence of open source community.
After UST happened, One thing we’ve learnt is how to not create an algo stable coin. Certainly there will be a dozen more coming down the pipeline with several value props, some will be successful and will find their way to Thorchain the only place where they can be natively traded against other apex assets in a fully decentralized manner.
Future is bright
Now imagine the impact they will have on the price of RUNE, we saw a glimpse of what could be achieved with UST, now do the maths with 10 other successful algo stables holding billions of dollars. Many people are not ready for what’s coming and are getting carried away with present price actions, not a good look.
Up until now, ThorChain remains the only amm DEX for trading native assets across L1 chains with strong fundamentals. If the price of RUNE drops further, I’ll start accumulating all over again. What tokens will you be DCA-ing into this bear market? Another token I’ve got my eyes on that is grossly undervalued and oversold is LEO.
Direction is much more important than speed, and many are going nowhere fast.
Thanks for reading