I believe the market is currently failing to fundamentally price $RUNE.
@THORChain
should be viewed as an asset with L1 like potential, and there exists a massive upward re-rating oppt. should the market realize this.
$RUNE is a 40% position for me.
Here’s why I am excited 🧵
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Before we begin, here is one of the best papers published on
@THORChain
to give you a brief reminder of what they do:
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It is obvious at this point that Layer 1s have been attracting a ton of flows recently with most up >150% over the last few weeks.
I am a massive fan of investing in L1 like assets given their favorable asymmetric R/R profiles.
In L1 like assets i.e. $SOL, $LUNA, $ETH, $DOT, $RUNE the WTP factor can be extremely high given:
1) Chance of becoming the internet reserve currency and accrues a monetary premium as a result
2) They can potentially have large MOATS at scale and accrue 50%+ market share LT
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Looking at the last 30D, we see $LUNA, $SOL, $FTM leading the L1's, with a majority of those returns coming from multiple expansion.
The strength across L1’s was also broad based, which tells me it was general sector beta.
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As a result, if $RUNE was to be categorized as a L1 like asset, there would be 70%+ upside on a beta driven re-rate alone to catch up with it’s peers in the near term.
I think this is possible and highly likely.
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Most think that THORchain is just a cross chain exchange, but it is so much more.
For example, THOR-FI will bring cross chain lending and synths etc... to every single chain in the future.
This signals the oppt. for stand-alone applications to be built on THORchain.
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But wait …. applications are already being built on top of THORchain 🤯:
xdefi - Crosschain metamask
Brokkr - Asset management/synthetics
Nine realms - liquidity
Thorswap - Thorchain liquidity seaps
This is just the beginning and there will be more in the future.
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Applications want to build on top of THORchain because it allows them to integrate on day 1 with every single chain that THORchain supports.
This is a massive bootstrapper for growth as applications have access to a much larger TAM from day one.
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Therefore, as crypto becomes more multi-chain, the chance that THORchain becomes a base layer for apps to be built on as well as critical infrastructure for is almost certain.
The market is not there yet and there is massive upside in the short & LT if I am correct.
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The Layer 1 of Layer 1’s, that’s what I am playing for.
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@HighCoinviction
@THORChain
loving the hate in the comments. folks do have plenty to be salty about. if thorchain pulls it off, they’ll buy back higher. I’m willing to take a sizeable risk they do. lots of smart people hyper focused on getting this right
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@HighCoinviction
@THORChain
One issue with trying to capitalize on speculation between L1 smart contract systems is the fact that they can create their own bridges.
@Solana
has Wormhole, $LUNA has Terrabridge,
#Avalanche
has a bridge, etc. Thorchain can connect UTXO chains to others, but so can
@renprotocol
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@HighCoinviction
@THORChain
Rune moves with DEFI. Watch defi perp chart to bust thru previous overhead resistance.
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@HighCoinviction
@THORChain
31% here now, been up to 50% and looking forward to see it explode again anytime soon!
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