Thorchain – Is there a correlation between RUNE token price and currency swaps?

ThorChain is a decentralized liquidity network with an interoperable blockchain that allows users to exchange tokens across multiple chains in a non-custodial way. There is no asset peg or asset wrapping in this project; instead, users are able to exchange tokens across various Layer 1 blockchains. ThorChain offers seamless trading between several digital assets such as Bitcoin, Ethereum, Polkadot, etc. without the need to register for an exchange or go through KYC, as in the case of CEXs. This reduces the risk of exposure to counterparty and custody risks to an absolute minimum. 

We are going to explore in this post how RUNE Price is impacting TVL, cryptocurrency swap volume and transactions and the impact RUNE Price has on those. The following chart shows the volume of transactions on Thorchain as well as the price of RUNE. As you can see, the transactions started picking up starting from Oct 21st, 2021, and it coincides with the increase in price of RUNE tokens over the same period.

Here is a chart showing the number of transactions that are done on Thorchain per day. It also shows the price of the RUNE token per day.

Let us now look at the liquidity provider actions (adding liquidity, removing liquidity, etc. ), as well as the price of RUNE tokens.