RUNE Spikes By 34% Following THORChain’s Activation Of Synthetic Assets

RUNE token inflates by 34% with $40.2 million volume in 24 hours, after activating synthetic assets.
RUNE Spikes By 34% Following THORChain’s Activation Of Synthetic Assets
RUNE Spikes By 34% Following THORChain’s Activation Of Synthetic Assets

RUNE price, the THORChain native token, has risen by 34%. This is due to the network’s activation of synthetic assets. Crypto synthetics, often known as synths, are digital asset derivative tokens that are tied to the value of the underlying collateralized asset, such as Bitcoin (BTC) or Ether (ETH).

THORChain, on the other hand, has chosen to back its synthesizers with a 50/50 split between the underlying asset and RUNE. Synthetics like BTC and sETH are now ready to trade on the network after the synthesizers activation went live earlier today. As a result, the RUNE price has increased by more than 20% to $5.27.

Furthermore, THORSwap Finance underlined the benefits of synthetic assets. Synthetics are particularly useful for traders and arbitrageurs since they may be transacted almost immediately and at a fraction of the cost of native L1 swap.

On Twitter earlier today, THORChain core developer Chad Barraford underlined the importance of newly available synths. Barraford predicted that the network’s trade volume will quickly increase.

Earlier last week, the team unveiled their strategy, promising to produce decentralized liquidity ten times greater than centralized liquidity. Following the elimination of synths from the list, other important future monuments include decentralized finance (DeFi) – nicknamed THORFi in this case – and lending and saving services.

The highly anticipated main net launch on THORChain, which is getting closer to completion but still lacks a firm launch date, will be another key source of interest.