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The cryptocurrency market has corrected slightly from the rally witnessed earlier this week. However, not all tokens have given in to the market recession. RUNE, the native token for THORChain, is still bullish due to increased buyer support.
Over the past 24 hours, RUNE has rallied by around 3.5%. RUNE has rallied by more than 63% during the past week alone.
THORChain prepares for Terra integration
Several factors are triggering RUNE's rally and enabling the token to outperform the rest of the cryptocurrency market. One of these factors is that THORChain plans its integration with the Terra network. Through this integration, users will have a chance to swap LUNA tokens for UST stablecoins.
These token swaps will be done directly for assets supported on other chains integrated with THORChain. This integration is expected to happen sooner than later. According to Nine Realms, the team that works on boosting “institutional liquidity”, the integration with Terra is already complete.
The integration is currently in the stage where the developers are working with the SCV auditor of the Terra smart contract to review the integration before it is launched on the mainnet. The integration is driving RUNE's prices because it will boost the interactions between THORChain and the second-largest decentralized finance (DeFi) network, Terra.
Terra is currently ranking second after Ethereum in total value locked (TVL). Its TVL currently stands at around $23.36 billion, according to DeFiLlama, surpassing giant networks such as Binance Smart Chain and Solana.
Besides the integration with Terra, RUNE is also rallying because of the highly anticipated launch of DeFiSpot. DeFiSpot is a decentralized multichain exchange created on top of the ThorChain network.
The DeFiSpot multichain exchange is planning to offer “boosted APYs.” The project promises that the annual percentage yields (APYs) paid out to investors will be higher than the current yields offered by the projects offering liquidity to chains integrated with ThorChain. Currently, users earn a 60% APY on investment on Binance USD and a 19% Yield on native Ethereum. A 17% APY is also paid out on Bitcoin.
The ThorChain network has many users because it functions as a cross-chain bridge by facilitating interactions across different blockchains. The network allows users to swap their assets directly across different blockchains. This can be done without the user rerouting the funds to cross-chain bridges or centralized exchanges.
The ThorChain network has already integrated with some of the industry's largest blockchains, including Bitcoin, Bitcoin Cash, BNB Chain, Ethereum and Dogecoin. Terra will be the latest addition to this long list, with the integration expected to continue offering major benefits to users on ThorChain.
As the seventh network to be integrated with ThorChain, Terra will be joining a long list of networks working together to create the future of blockchain. The integration of Terra will also open up opportunities for ThorChain to integrate other networks, given that Terra is created using Cosmos SDK. Therefore, Cosmos SDK blockchains could soon be integrated with ThorChain.
RUNE records a major rally
RUNE has created a bullish flag due to these developments happening on the ThorChain network. During the past 24 hours, the global cryptocurrency market cap has dropped slightly, but RUNE is still up with a 3.5% gain in 24 hours.
During the past seven days, RUNE has gained by over 60%. A strong bullish rally is expected once the Terra integration is finalized and with the launch of DeFiSpot. RUNE is currently 72% below its all-time high. Its market cap stands at $1.7 billion, making it the 68th largest cryptocurrency by this metric.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.