There are lots of vaporware tokens trading at much larger valuation but a $100 million+ revenue generating cross-chain swap protocol shouldn't trade at a $17 billion marketcap?
Thorchain(RUNE) has always been a long-term bet of mine and it's insane how grossly undervalued it is it terms of broader adoption(maybe it needs to introduce cross-chain Perps?).
A $20,000 investment into Thorchain’s RUNE is the easiest $1 million in profits anyone can make in the next decade. That's 5,000% ROI from current market valuation and I frankly expect it to happen much sooner than a decade.
To support that argument, consider RUNE, Thorhains native token’s previous peak market valuation of $20.
If RUNE reclaims that price level in the current bull market, a $17 billion market valuation milestone would require just 2.5x jump from there.
For those who don't know, Thorchain is a cross-chain swap solution that enables anyone to move and swap natives assets through multiple blockchains without needing to utilize centralized exchanges.
To date, Thorchain has enabled $83.6 billion in crypto assets to flexibly move cross-chain and has earned over $35 million just last year in pool revenue.
RUNE fair market value, sometimes called “deterministic value” , managed to stay above $1 throughout last year, which effectively means that it maintained over $300 million pooled on the protocol in non-RUNE assets.
What I find interesting about this particular metric is that the trend could be a unique signal of price levels that could indicate trend reversal or a potential extreme bottom for the asset in any market cycle.
But of course, since these values are determined by secondary asset values present on the protocol, it can also be misleading and should only be used as a piece of a larger dataset for analysing the health of RUNE, as a tradable asset.
RUNE Burns: Over $286k Torched Monthly
In the last 30days, over 58.93k RUNE worth over $286k, have been burned by the protocol.
Evidently, this may be considered a low burn rate that will take years to amount to something significant, token-sum-wise. Notwithstanding, judging by RUNE’s total supply of 416.54 million, having previously eliminated millions of its token supply to drop its max supply from 1B to 500M via proposal burns, as per several reports, a burn rate as such noted above, helps significantly reduce available tokens for trade.
Over 106 million RUNE are already boned by network nodes and over 33 million pooled by users. So there's essentially barely 205 Million tokens available for trade and idle in wallets.
This means that approximately 40% of RUNE’s circulating supply is actively contributing to the protocol’s growth.
Back To RUNE’s Deterministic Value
Having looked at all the data, if we consider RUNE’s deterministic value, which is currently about $1.79, the non-RUNE assets locked in the protocol acts as some sort of price protection for 37% of RUNE’s real circulating supply marketcap.
Essentially cutting down RUNE’s volatility by proxy.
Now, we are very much making bold conclusions here comparing these different on-chain data, but we cannot be too far off with our estimates.
Thorchain is a highly valuable protocol as it solves the over-reliance on centralized exchanges problem for moving value cross-chain.
Generating $35 million pool revenue(alone) in the last 365 days shows that there's indeed a market willing to pay the cost to operate through decentralized and non-KYC solutions, even if it costs more than going the traditional route.
If Thorchain’s non-RUNE assets locked grows by 10x, essentially reaching $3.16 billion, which is very achievable. RUNE’s deterministic value would be around $17.9, putting its market price above $50.
Posted Using InLeo Alpha