Following the announcement of the new feature, Rune tokens have risen by double digits in the last 24 hours, as we saw today in our latest cryptocurrency news.
DeFi Project ThorChain launched a new update and rUNE tokens rose immediately after the announcement. Thorchain has gained 18% in the last 24 hours after the DeFi project launched its synthetic assets and announced the release date of a series of features called ThorFi. The project's token has enjoyed a healthy uptick in activity, with RUNE trading at $4.73 today, touching a high of $5.85 by coin market cap and up as much as 24 percent over the past week.
SYNTHETICS is now available on @THORChain1 synthetic #Bitcoin on THORChain can always be exchanged for 1 #Bitcoin from the liquidity pool.
Built on top of Cosmos, Thorchian is a cross-chain cryptocurrency platform that allows users to trade cryptocurrencies from different networks without the need for third parties such as Coin and Coinbase. The latest update continues to build on a mix of incompatible cryptocurrencies such as BTC and ETH to create new derivatives with the latest price increases, which can be attributed to various new updates introduced or heavily advertised by Thorchain. Synthetic assets allow users to create derivative versions of other popular cryptocurrencies, such as BTC and ETH, with a trading volume of $7 million on DEX Thorswap.
Synthetic assets are backed by a liquidity mining pool in the Thorchaine ecosystem and unlike inventory assets such as Wrapped Bitcoin, where cryptocurrency assets are pegged and backed 1:1 to the price of BTC and ETH, synthetic assets are minted with a 50% blend of RUNE tokens and 50% of the target assets. These assets are similar to liquidity pool tokens, where DEFI users receive a receipt and deposit the liquidity into a pool with Uniswap or Curve Finance. As with LP tokens, synthetic asset holders can exchange synthetic tokens 1:1 for something real, such as Bitcoin, or exchange synthetic ETH for a synthetic version. Chad Barraford, a core developer, pointed out a new initiative called Thorfinance that could bring most DEFI tools under the ThorChain umbrella.
As recently reported, the cross-chain protocol ThorChain went live with the trading of synthetic assets on the platform, causing the price of RUNE to rise 37% from Wednesday's low to Thursday's peak of $5.56. Blockchain-based representations of synthetic assets or other assets such as cryptocurrencies are backed by half of the value of the underlying asset and half of RUNE, which allows users to hold and trade Layer1 or a representation of the underlying asset at a lower cost.