THOR-WETH Potential Bottom
THORSwap is a cross-chain DEX aggregator built on THORChain. Synths should be launching on THORChain soon, which should align with a general pump of the THORChain ecosystem. THORSwap has been in a slow decline in line with the rest of the market since around start/mid December.
The reasoning behind the long is that THOR has a tiny market cap (~$18-20 million) and so should outperform THORChain in the event that synths are actually launched in the coming 2-3 weeks. Essentially it is a bet on volume coming to THORChain, and considering that THORSwap is currently the main frontend for THORChain this should also positively affect THOR price action.
Why WETH, you ask? THOR is an ERC-20 token and so naturally the goal is to outperform ETH. Additionally, the vast majority of the liquidity available on THORChain is ERC-20 tokens and so the dominant ecosystem within THORChain is Ethereum.
The reasoning behind the long is that THOR has a tiny market cap (~$18-20 million) and so should outperform THORChain in the event that synths are actually launched in the coming 2-3 weeks. Essentially it is a bet on volume coming to THORChain, and considering that THORSwap is currently the main frontend for THORChain this should also positively affect THOR price action.
Why WETH, you ask? THOR is an ERC-20 token and so naturally the goal is to outperform ETH. Additionally, the vast majority of the liquidity available on THORChain is ERC-20 tokens and so the dominant ecosystem within THORChain is Ethereum.
Note
Synths took a bit longer than anticipated, but the thesis was correct
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.