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THORChain (RUNE), the decentralized liquidity network, closed the month of August with the highest monthly volume in the past year, surpassing $1 billion. The increase in volume was attributed to the launch of a new feature called “Flow Swaps,” which allows protocol users to split a single transaction into multiple sub-transactions over time.
New Feature for THORChain
This feature was initially launched to help reduce slippage, which is the difference between the expected price and the actual price at which a transaction is executed. In addition to Flow Swaps, THORChain also expanded to include some major networks such as Cosmos (ATOM) and Avalanche (AVAX).
Furthermore, the protocol announced the launch of a lending protocol that allows users to lend their native Layer 1 assets such as Bitcoin (BTC) and Ethereum (ETH) to THORChain and borrow USD during the month of August.
The Future of RUNE Coin
While the rest of the market experienced a downward and sideways trend in August, RUNE recorded gains due to its low positive correlation with BTC. According to data from CoinMarketCap, the token’s value increased by 66% over a 31-day period.
However, the token price reached $1.7 on August 22 as profit-taking activities began. As of writing, the price of RUNE has declined by 17% since then, currently trading at $1.4.
Values derived from the Moving Average Convergence Divergence (MACD) indicator on the daily chart revealed that sellers initiated a new bear cycle on August 22. The MACD line crossed below the trend line and the indicator has since been marked by downward-facing red histogram bars.
Furthermore, the reappearance of bearish sentiment resulted in a decline in momentum indicators for RUNE. For instance, the Money Flow Index (MFI) fell below the centerline and remained at 34.06 as of the time of writing.
Additionally, RUNE’s Relative Strength Index (RSI), which was at 51.61, appeared poised to move below the 50-neutral line, indicating a decrease in token accumulation. This suggests that investors who entered the market in August began to sell their holdings for profit.
Despite numerous feature updates and price increases throughout the month, funding rates for RUNE in cryptocurrency exchanges’ futures markets remained negative. However, as the price of RUNE increased, these short positions faced liquidation.
