Thorchain: The $BTC ETF Rotation

The $BTC ETF has the potential to bring billions of dollars on-chain and send altcoins to Valhalla. 6 charts on why $RUNE may be the first to benefit.

The $BTC ETF has the potential to bring billions of dollars on-chain.

And send altcoins to Valhalla.

6 charts on why $RUNE may be the first to benefit.

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The connection between Thorchain ($RUNE) and Bitcoin is deep.

• Over $60M worth of Bitcoin is deposited on Thorchain.

• Over 22% of volume on Thorchain DEX comes from Bitcoin and Ethereum users.

Why?

There's a very simple reason for this. 👇

Thorchain is one of the ONLY DEXs you can:

• Swap NATIVE Bitcoin for NATIVE tokens (ie ETH) and vice versa.

• Deposit native Bitcoin to earn yield.

This makes Thorchain uniquely positioned to benefit from the BTC ETF.

And we're already seeing signs of it...

Volume on Thorchain spiked with the ETF announcement.

Likely as users rotated out of Altcoins into $BTC.

The last time we saw volume this high was back in October.

And $RUNE had a massive rally shortly after.

There's a reason for this. 👇

Volume on Thorchain creates buy pressure on $RUNE.

The graphic below details this.

It's very easy to imagine a scenario where ETF liquidity leads to increased trading volume, $BTC deposits, and a higher price of $RUNE.

But how do we know this is not already priced in?..

$RUNE price is lagging.

Additionally, TVL, revenue, and CEX purchases are all hovering at their weekly or monthly averages.

With a surge in volume from the ETF though, this could very quickly change.

How do I know more volume will come to Thorchain?

I don't.

But consider these facts:

• Thorchain gets massive volume from BTC & ETH every day.

• It’s one of few places in DeFi to earn yield on $BTC (63M deposited)

• Less than 1 % of BTC is WBTC. People want NATIVE BTC.

I’m not betting against it.

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Love

Deebs