THORChain RUNE price has surged by more than 13% today to hit a daily high of $2.29 today.
At the time of writing, the coin has slightly pulled back to $2.28 although the bullish momentum seemed to be gathering momentum every minute.
Today’s price surge comes after a tough week that had seen THORChain RUNE price drop from a high of $2.0197 to a low of about $1.76.
Why is THORChain RUNE price rising?
The main reason for today’s surge in the price of RUNE, the native token of ThorChain, was the successful launch of THORChain’s mainnet on seven different networks.
In a nutshell, THORChain enables decentralized exchanges and its users to move crypto assets seamlessly, and launching its mainnet on different blockchains expands the DEX’s reach.
Currently, there is a little over $300 million in total value locked (TVL) on THORChian.
THORChain is currently the only blockchain network that is capable of facilitating decentralized swaps across multiple blockchain networks without using smart contracts. And according to the DEX, it is able to accomplish this without compromising the security of the users’ assets.
In a recent interview with a news outlet, the Technical Lead at THORChain, Chad Barraford, said that although cryptocurrencies are normally decentralized, the majority of trades take place in centralized exchanges and THORChain was out to ensure that cryptocurrencies are traded in a decentralized peer-to-peer manner.
How THORChain functions
Instead of using smart contracts for the swaps, THORChian runs liquidity pools between various blockchains thus avoiding using wrapped tokens, which are mainly associated with smart contracts and mostly expose users to hacking risks.
Currently, THORChain supports the swapping of tokens across Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, Binance, Litecoin, and Itself.
Notably, despite the steps that THORChain has taken to ensure security, the network has been a victim of a number of hacks with the most recent being a hack that took place in July 2021 leading to a loss of about $8 million.
Moving to its own mainnet has not only impacted the THORChain RUNE price but will also enhance the security of the network and avoid future attacks.