THOR surges over 300%: Exploring reasons behind the supercharged bulls
- THOR delivers an impressive bullish performance.
- Thorswap’s token burns and incentives to attract whales are the main catalysts.
We’re halfway through August and the market is already starting to show some excitement, albeit in an isolated few coins. THOR, not to be confused with Thorchain, is among the digital currencies that have performed exceptionally well recently.
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THOR is the native token on the Thorswap DEX. It has lately been commanding a lot of attention, especially after its impressive performance. THOR traded as low as $0.076 on 6 August which happens to be its lowest price in roughly six weeks. It peaked at $0.87 on Monday (14 August) after an impressive 1017% rally from its monthly low.
THOR and its thunder
THOR exchanged hands at $0.38 at press time, after pulling back from its peak of 14 August. Some selling pressure was expected since the price was already deep in overbought territory. Despite that, the press price still represented a 400%+ gain from its recent monthly low.
Now that we have observed THOR’s robust rally, it is time to look into the reasons why. A bit of research revealed that the network offers incentives.
For example, most of the network’s recent activity involved a lot of whales. This is not surprising considering that the Thorswap DEX recently introduced a 50% whale tier discount.
Introducing @THORSwap Whale Tier ?
Swaps over $1m USD value now receive a 50% exchange fee discount! ?
— THORSwap ⚡ #BetterThanCEX (@THORSwap) August 14, 2023
Of whales and token burns
Most DEXes tend to be pricier than their centralized counterparts. Nevertheless, whales need and use DEXes to bypass transaction size restrictions. Such a hefty discount was bound to attract a significant amount of whales and as such, fueling demand for the THOR token. However, this was not the only reason for the rally.
How many are 1,10,100 THORs worth today
Thorswap has been ramping up its deflationary characteristics through token burns. It recently revealed that its August volume burn surpassed the 300% mark. The DEX plans to burn as much as 7.5 million THOR tokens as part of a governance-approved proposal.
Great job #THORChads! The August volume burn target has exceeded 300%, and it’s only half way through the month! ?
— THORSwap ⚡ #BetterThanCEX (@THORSwap) August 15, 2023
The burnt THOR volume is enough to have an impact on both the sentiment as well as the price. But can these factors support more upside or is the token headed for more upside? Well, Thorswap’s real volume has already pivoted after a double top with a lower high.
Note that the same volume metric was previously dormant in the last four weeks before the excitement observed in the last few weeks. Heavy profit-taking may curtail the upside but not necessarily by much given that the token burns will still continue in the second half of August.