• THORChain recently launched a lending protocol, allowing users to lend their Layer 1 assets such as Bitcoin and Ethereum and borrow a USD-denominated debt.
• RUNE’s price experienced a short term decline after the launch, but quickly regained its upward momentum.
• Despite the positive news, RUNE’s Relative Strength Index (RSI) was in an overbought zone, which was bearish.
THORChain Launches Lending Protocol
THORChain recently announced that its lending protocol went live on 21 August. This allows users to lend their native Layer 1 assets such as Bitcoin [BTC] and Ethereum [ETH], and borrow a USD-denominated debt named TOR. The debt can be repaid in any THORChain-supported asset, including stablecoins.
RUNE Price Reacts
RUNE’s price initially saw a slight dip after the launch, but quickly regained its bullish momentum. At press time, RUNE’s price had increased by more than 5% in the last 24 hours and was trading at $1.68 with a market capitalization of over $572 million. Additionally, Open Interest also rose while the token’s price went up, suggesting that the current trend might continue for some time.
RSI Overbought
Despite all this positive news surrounding RUNE’s performance following THORChain’s launch, CryptoQuant’s data showed that its Relative Strength Index (RSI) was in an overbought zone, which is typically seen as bearish by traders and investors alike.
Social Volume Spikes
The launch of THORChain’s lending protocol led to an increase in social volume surrounding the token as well; however it did not seem to have an impact on weighted sentiment which dropped slightly during that period of time.
Conclusion
Overall it appears that despite initial dip due to its RSI being overbought , RUNE has largely benefitted from THORChain’s recent launch as its price has gone up significantly since then ; additionally open interest has also increased .