The price of the original asset of the decentralized cross-chain exchange THORChain (RUNE) rose by 34% the day after the activation of synthetic assets on the network.
At the time of writing, the price has re-established with a 21% increase over the last 24 hours to $ 5.27.
Synthetic cryptocurrencies or counterfeits are tokens derived from other digital assets that are linked to the value of an underlying secure asset such as bitcoin (BTC) or ether (ETH). In the THORChain variant, the project decided to support the combinations of 50% of the underlying asset and 50% of RUNE. Activation took place earlier today, and synthetic assets such as synthetic BTC (sBTC) and synthetic ETH (sETH) can now be traded on the network.
THORSwap Finance highlighted the benefits of synthetic assets in a blog post on Thursday, noting that “synthetic assets have significant benefits for traders and accountants, as they can be executed almost immediately and at a fraction of the cost compared to original L1 swaps.”
“In the future, this will also allow THORChads to generate synth revenue through storage and provide other exciting opportunities for THORFi,” the post states.
The activation took place earlier today and it is now possible to trade synthetic assets such as sBTC and sETH on the network. The price of RUNE reacted positively, climbing more than 20% to $ 5.27.
Earlier this week, the team charted the way forward, promising to make “decentralized liquidity 10 times greater” than centralization. After spinning synthesizers off the list, other important milestones for the future include decentralized finance (DeFi) – called THORFi – services such as lending and savings.
Another highlight is the long-awaited mainnet launch on THORChain, which is nearing completion, but no launch date has yet been set. As Cointelegraph previously reported, the recent increase in RUNE, which also shows an increase of more than 48.4% in the last 14 days, may also be due to the full integration of Terra (LUNA) into the THORChain protocol in early March.
Chad Bruford, lead developer of THORChain, stressed the importance of the recently launched syndication via Twitter earlier today, and suggested that e-commerce volume may soon increase:
“Synthetic trading on THORChain has half the exchange fee, which makes the exchanges cheaper, the gas fees cheaper and faster for traders. You can make almost instant trades with high volume.”