- THOR delivers an impressive bullish performance.
- Thorswap’s token burns and incentives to attract whales are the main catalysts.
We are halfway through August and the market is already starting to show some excitement, albeit in a few isolated coins. THOR, not to be confused with Thorchain, is one of the digital currencies that has performed exceptionally well recently.
Is your wallet green? Check out the THOR profit calculator
THOR is the native token on the Thorswap DEX. It has been attracting a lot of attention lately, especially after its impressive performance. THOR traded from $0.076 on August 6, which happens to be the lowest price in about six weeks. It peaked at $0.87 on Monday (Aug. 14) after an impressive 1017% rally from its low in the month.
THOR and his thunder
THOR switched hands at $0.38 at the time of writing, after pulling back from its August 14 peak. Some selling pressure was expected as the price was already deep in overbought territory. Despite this, the press price still represented a gain of more than 400% from its recent monthly low.
Source: TradingView
Now that we’ve observed THOR’s robust rally, it’s time to examine the reasons behind it. After some research, it turned out that the network offers incentives.
For example, many of the network’s most recent activities have involved whales. This is not surprising considering that the Thorswap DEX recently introduced a 50% whale level discount.
Introduction @THORSwap Whale layer ????
Swaps worth over $1 million USD now receive a 50% discount on the exchange rate! ????
????Calling All Whales: Don’t Trust CEXs With Your Valuables, Take Self-Storage and Try DeFi With #BetterthanCEX prices today????https://t.co/7acpIvFWDP pic.twitter.com/jxboRasKDD
— THORSwap ⚡ #BetterThanCEX (@THORSwap) August 14, 2023
Of whales and symbolic burns
Most DEXs tend to be more expensive than their centralized counterparts. Nevertheless, whales need and use DEXs to get around transaction size restrictions. Such a hefty discount would no doubt attract a significant number of whales and as such fuel demand for the THOR token. However, this was not the only reason for the rally.
How much are 1,10,100 THORs worth today
Thorswap has ramped up its deflationary characteristics through token burns. It recently revealed that volume burn passed the 300% mark in August. The DEX plans to burn a whopping 7.5 million THOR tokens as part of a board-approved proposal.
Good job #THORChads! The volume burn goal for August has passed 300%, and it’s only halfway through the month! ????
According to proposal [TIP-003]: a multiplier of 3x is applied to 3x emissions to burn. This means ~7.5 million $THOR will be burned at the end of the month ????#THORBurn pic.twitter.com/O1RmvPJLYL
— THORSwap ⚡ #BetterThanCEX (@THORSwap) August 15, 2023
The THOR volume burned is enough to influence both sentiment and price. But can these factors support more benefit or is the token moving towards more benefit? Well, Thorswap’s true volume has already turned after a double top with a lower high.
Source: Messari
Note that the same volume metric was more likely to be dormant in the last four weeks before the excitement observed in recent weeks. Heavy profit-taking may limit the upside, but not necessarily to a large extent, given that the token burns will still continue in the second half of August.