The price of a native asset for the cross-chain decentralized exchange THORChain (RUNE) jumped 34% in a day after the activation of synthetic assets on the network.
At the time of writing, the price is back up 21% over the past 24 hours to $5.27.
Synthetic or synthetic cryptocurrencies are derivative tokens of other digital assets that are pegged to the value of an underlying collateralized asset such as Bitcoin (BTC) or Ether (ETH). In the THORChain variant, the project decided to support its synths with 50% of the base asset and 50% of RUNE. The activation was launched earlier today and synthetic assets such as sBTC and sETH can now be traded on the network.
THORSwap Finance highlighted the benefits of synthetic assets in a March 10 blog post, noting that “synthetic assets are very useful for traders and arbitrageurs as they can be traded almost instantly and at a fraction of the cost compared to native L1 swaps.”
“In the future, this will allow THORChads to also profit from Synths through storage and provide other interesting THORFi utilities,” the post reads.
The activation was launched earlier today and synthetic assets such as sBTC and sETH can now be traded on the network. The price of RUNE reacted positively, climbing more than 20% to $5.27.
According to Messari, THORChain is currently the third largest project in DeFi after Uniswap and Maker and is ahead of well-known projects like Aave and PancakeSwap.
Earlier this week, the team revealed their roadmap, promising to increase “decentralized liquidity by 10x” compared to centralized liquidity. With synths delisted, other important future milestones include decentralized finance (DeFi) — in this case called THORFi — services such as lending and savings.
Thorchain made $40 million on synth launch day. Good start. Bullish forecast.
Another notable highlight will be the highly anticipated mainnet launch on THORChain, which is nearing completion but still has no specific launch date. As previously reported, the recent spike in RUNE, which also increased by over 48.4% in the last 14 days, could also be due to the full integration of Terra (LUNA) into the THORChain protocol earlier this month.
THORChain’s main developer Chad Barraford also highlighted the importance of the newly launched synths via Twitter earlier today, suggesting that online trading volume could pick up soon:
“Synthetics trading on THORChain is subject to half the swap fee, making swaps cheaper, cheaper gas fees, and faster for traders. You can make almost instantaneous high volume trades.”