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Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

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2024-01-24 09:51:19 601browse

Crypto researcher DEEBS DEF wrote that the launch of a Bitcoin ETF may be beneficial to Thorchain ($RUNE). The article analyzes Thorchain’s unique positioning to allow native exchange and earning of Bitcoin, and points out the increase in trading volume and impact on $RUNE price that a Bitcoin ETF could bring. The full text has been compiled by Shenchao.

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

#$The BTC ETF has the potential to bring billions of dollars on-chain and drive other altcoins to Valhalla. The following five charts explain why $RUNE may be one of the first beneficiaries. Why $RUNE might be the first to benefit? 1. $RUNE is a cross-chain protocol that enables seamless interaction between different blockchain networks. 2. $RUNE has the characteristics of high security and decentralization, which can attract the attention of more investors and institutions. 3. $RUNE Market Cap and Transactions

Thorchain ($RUNE) is very closely connected to Bitcoin:

  • Over $60 million worth of money is stored on Thorchain Bitcoin

  • Over 22% of trading volume on Thorchain DEX comes from Bitcoin and Ethereum users

Why is this? The reason is simple:

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

Thorchain is one of the few DEXs that can do the following:

  • Be able to swap native bits Coins and native tokens (such as ETH)

  • Deposit native Bitcoin to earn income

This gives Thorchain a unique advantage to benefit from Benefit from BTC ETF.

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

Thorchain’s trading volume surges with ETF launch

The recent surge in trading volume may be users switching from other altcoins to embracing Bitcoin result. The last time we saw such high volumes was in October last year.

And $RUNE saw a large-scale rally shortly after that. There is a certain reason for this.

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

#Trade volume on Thorchain would create a buy push for $RUNE

The graphic below details this. It’s easy to imagine a phenomenon where ETF liquidity leads to increased trading volume, increased BTC deposits, and rising RUNE prices. But how do we know whether this phenomenon is currently reflected by the market?

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

$RUNE’s Price Lags

Not only is $RUNE’s price lagging, its total value locked (TVL), revenue, and CEX purchases are all hovering around the weekly or monthly average.

That could soon change, though, as ETF trading volumes surge.

Thorchain: After the launch of Bitcoin ETF, why will it benefit first?

How do I know Thorchain will have more transaction volume?

I am not sure. But consider the following facts:

  • Thorchain gets a lot of daily trading volume from BTC and ETH

  • It is one of the few in DeFi that can make One of the places to take BTC earnings (deposit $63 million)

  • WBTC accounts for less than 1% of BTC, people want native Bitcoin

I don’t have any doubts about this, I believe Thorchain will have more transaction volume.

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