Try Quests to earn cryptoIn the last 12 weeks, the price of RUNE fell by 72 %. Falling prices mean there is less demand for RUNE as traders sell the asset.
In this post, I measure the weekly demand for RUNE on THORchain. To do so, I show the weekly volume of all assets swapped to RUNE on Thorchain. I then group the volumes by blockchain, and then by pool. From this data, we see the weekly demand for RUNE, as well as changing trends in which assets are swapped for RUNE.
- The Data includes the last 12 weeks of THORchain swaps.
- Double-swaps* are excluded.
- Pools and blockchains with under 5000 USD of total weekly swap volumes are excluded.
*A double-swap is a trade where RUNE is used as the medium of exchange between two assets. For example, a swap of ETH -> RUNE -> DOGE.
The chart appears to show reduced demand for RUNE by traders and investors.
It shows weekly swaps to RUNE denominated in USD. Let's visualize the volumes in RUNE instead of in USD.
Total swaps to RUNE remained stable in the last twelve weeks, with the exception of the week of May 9 which saw increased volumes of swaps to RUNE.
We can learn a lot from the chart above:
> * The Binance chain facilitates the highest weekly volumes of RUNE purchases on THORchain. > * Swaps from TERRA assets to RUNE have stopped. > * For some chains, native asset swaps to RUNE appear to have been replaced by Synthetic Asset swaps to RUNE. This is particularly stark for Ethereum, where trading fees are the highest. Synthetic asset swaps to RUNE are shown in blue on the chart.
> Insight: THORchain trading activity has not decreased during the last twelve weeks. Because of falling crypto prices, swap volumes measured in USD are lower.
It is interesting to group the data by Blockchain. Then we can see which chain drives the highest volumes of swaps to RUNE.
The previous insights remain valid when weekly swap volumes are measured in RUNE. Again, we see that THORchain swaps to RUNE remained stable when measured in RUNE (and not USD).
Finally, let's group swaps to RUNE by individual pool.
RUNE is most often purchased using Binance BUSD.
Twelve weeks ago, native ETH was the second most utilized asset to purchase RUNE. Today, native Bitcoin has taken its place.
For a while, Terra UST facilitated large volumes of swaps to RUNE. Now, Terra trading has stopped.
> 1. When measured in USD, the demand for RUNE has decreased in the last twelve weeks. > 2. The quantity of RUNE purchased has remained stable during this period. > 3. THORchain trading activity remains vibrant. Reduced volumes are due to falling crypto prices (and not reduced network usage).
What did we learn from visualizing weekly swaps to RUNE on THORchain?
We also learned a few things about which chains and pools are used to purchase RUNE.
> 4. A substantial portion of native asset swaps to RUNE were replaced with Synthetic Asset swaps to RUNE. Weekly native ETH swaps to RUNE decreased as Synthetic Asset swaps to RUNE increased. > 5. Before its spectacular collapse, Terra UST had its moment in the sun. In the week of April 4, over 10 million UST were traded for RUNE, making it the second most utilized asset to buy RUNE. > 6. The Binance chain drives the highest volumes of swaps to RUNE, with BUSD as the number one asset used to buy RUNE.
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