• ThorChain surpassed $1 billion in transaction volume in the last five days, a surge attributed to illicit activity.
  • RUNE price has seen an impressive increase over the past week before a 5% dip on the daily chart.
  • Long and Short liquidations appear to be balancing out. 

THORChain (RUNE) is exhibiting bullish price movement, but investors need to be cautious as the recent surge in trading activity could be linked to illicit transfers. THORSwap exchange said Friday that it has paused its swapping feature amid concerns it has been used to move illicit funds.  In the past week, RUNE experienced a price rally due to an uptick in trading volume, but the token price has dipped 5% in the daily frame. 

THORSwap pauses swaps 

THORSwap DEX confirmed in a tweet on Friday that it is currently being updated and cryptocurrency swaps are unavailable amid the news of illicit transfers. However, other activities on the platform like providing liquidity, earning interest, borrowing, and staking remain operational, as per the official statement on X. 
 

THORSwap entered maintenance mode on Friday after confirming that illicit funds are flowing through THORChain. It noted, “A pressing and persistent concern has recently come to light: the potential movement of illicit funds through THORChain and, specifically, THORSwap. Such activities have no place on the THORSwap platform, and THORSwap stands firmly against any and all criminal actions.”

Previously, Chinese journalist Colin Wu confirmed in a tweet that the sharp increase in transaction volume to $355 million on Thursday could be on the back of hackers exploiting this cross-chain capability. Especially since ThorChain surpassed $1 billion in cumulative transaction volume in just five days. Therefore, investors needed to exercise caution while interpreting such a spike.

THORChain's RUNE token is trading under $2 at the time of writing. Based on CoinGecko calculations, the 24-hour trading volume stands at $592 million with a circulating supply of 300 million. The last seven days saw a price increase of 1%, while the gain is nearly 9% in the last two weeks. 

While the price action seemed bullish, it was crucial to note that ThorChain is a decentralized liquidity network. It allows cross-chain token swaps, and facilitates non-custodial trading across blockchains. And bad actors can exploit this capability for transfers. 

THORChain’s Long, Short liquidations balance out

THORChain's derivatives data indicate Long and Short positions are balancing out. Based on Coinglass data, there is a 36% increase in trade volume of total derivative contracts. Open interest or contracts that are currently outstanding have risen by 8.34% to $51.49 million. The LongShort ratio in the last 24 hours is at 0.97. This metric is considered a barometer of investor expectations, and generally a high ratio indicates positive investor expectations as long positions outweigh short ones.

 

1-day RUNE price and volume chart
1-day RUNE price and volume chart

The position of traders show that almost equal bets are placed on RUNE price going up or down. 

Based on the fundamentals, ThorChain is currently at a block height of 12.8 million, with a total supply of 485 million RUNE tokens. The total historical volume on the blockchain amounts to $18 billion, with a total of 79,147 addresses involved.

THORChain maintains 94 active nodes at the time of writing. In terms of contribution to the Total Value Locked (TVL), the chain has $135.57 million locked as per Defillama figures.

Therefore, THORChain's recent price surge and trading volume that showcase bullish tendencies raise questions about the type of transfers. Investors need to practice caution while trading on figures with the expectation of a bullish trend. Meanwhile, amidst a surge in derivative trading activity, the Long-Short liquidations suggest that the market sentiment around price has balanced out. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum continues hinting at rally following reduced long liquidations

Ethereum continues hinting at rally following reduced long liquidations

Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.

More Ethereum News

HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera

HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera

Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera. 

More Hedera News

Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds

Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds

Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome. 

More Bitcoin News

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP