THORChain Faces Bearish Pressure Despite Surge in Swap Volume
THORChain’s token,RUNE,is showing signs of a bearish trend. It’s currently trading at $1.3050, down 82% from its November peak. The token is near its lowest point as November 2023 and is 90% below its all-time high.
Despite this, the network has seen a massive increase in swap volume. Third-party data reveals that THORChain recorded one of its best weeks ever. Swap volume surged 640% to $3.3 billion over the past seven days.This makes it the sixth-largest player in the decentralized exchange industry.
TokenTerminal data shows that weekly active addresses nearly quintupled to 5,000. however,this surge is linked to the recent Bybit hack. According to Arkham, Lazarus Group transferred over $240 million worth of Ethereum through the network. The group laundered the stolen Ethereum by converting it to Bitcoin.
THORChain is facing major challenges. In January, it paused Ethereum and Bitcoin lending due to liabilities exceeding $200 million. A core developer, Pluto, resigned after a vote to block North Korean hacker-linked transactions failed.
The weekly chart shows a steep downtrend sence December. RUNE has fallen below key support levels. It’s now forming a bearish flag pattern, a typical bearish continuation signal. A further breakdown could be confirmed if the price drops below $0.7790.
