Crypto researcher DEEBS DEFI published an article that the launch of Bitcoin ETF may benefit Thorchain ($RUNE). The article analyzes Thorchain's unique positioning of allowing Bitcoin native exchange and earning income, as well as the increase in trading volume and impact on $RUNE price that Bitcoin ETF may bring. Shenchao compiled the full article.
$BTC ETF has the potential to bring billions of dollars on-chain and send other altcoins to Valhalla. Here are six charts to explain why $RUNE could be one of the first beneficiaries. Why $RUNE could be the first to benefit
The correlation between Thorchain ($RUNE) and Bitcoin is very strong:
Over $60 Million Worth of Bitcoin Stored on Thorchain
Over 22% of trading volume on Thorchain DEX comes from Bitcoin and Ethereum users
Why is this happening? The reason is simple:
Thorchain is one of the few DEXs that can:
Ability to swap native Bitcoin with native tokens (such as ETH)
Deposit native Bitcoin to earn yield
This puts Thorchain in a unique position to benefit from a BTC ETF.
Thorchain’s Volume Surges Following ETF Launch
The recent surge in trading volume could be the result of users switching from other altcoins to Bitcoin. The last time we saw such high trading volumes was in October last year.
$RUNE saw a massive rally shortly after that, and for good reason.
Volume on Thorchain will provide a buying push for $RUNE
The graphic below illustrates this in detail. It is easy to imagine a phenomenon where ETF liquidity leads to increased trading volume, increased BTC deposits, and higher RUNE prices. But how do we know if this phenomenon is currently reflected by the market?
$RUNE’s price lags
Not only is $RUNE’s price lagging, its Total Value Locked (TVL), revenue, and CEX purchases are all hovering around weekly or monthly averages.
However, this may soon change as ETF trading volumes surge.
How do I know Thorchain will have more volume?
I'm not sure. But consider these facts:
Thorchain receives a large amount of transaction volume from BTC and ETH every day
It’s one of the few places in DeFi where you can earn yield on BTC ($63 million deposited)
WBTC accounts for less than 1% of BTC, people want native Bitcoin
I don’t doubt this, I believe Thorchain will have more trading volume.
