The price of RUNE, the native token of THORChain, has climbed 19.7% to hit an intraday high of $1.65 today

This surge, however, comes amidst unsettling reports of illicit activity, as a hacker tied to the Bybit exchange reportedly exploited THORChain's infrastructure

The price of RUNE, the native token of THORChain, has surged by 19.7% to hit an intraday high of $1.65 today. This surge is accompanied by a 29.6% increase in trading volume to $1.268 billion.

However, this surge comes amidst reports of illicit activity. Yesterday, a hacker tied to the Bybit exchange exploited THORChain’s infrastructure to bridge over 70,000 ETH into Bitcoin (BTC).

THORChain’s surge in price and activity

THORChain is recognized for its role in enabling anonymous cross-chain swaps, a feature that empowers decentralized liquidity management across disparate blockchain networks. This functionality fuels its appeal.

The token’s market performance is a testament to this.

The recent 24-hour trading volume has dwarfed its market cap at $1.268 billion, showcasing a frenzy of activity. This has pushed the token’s price from a daily low of $1.34 to a high of $1.65.

Over the past week, RUNE has gained 37.7%, rebounding impressively from a 29.8% decline over the previous month. However, it remains far from its all-time high of $20.87 which was set nearly four years ago.

According to Rose Premium Signals, RUNE’s price rise is a result of a trend reversal after the token hit a bullish double-bottom pattern at key support.

But beyond the bullish double-bottom pattern, this price movement coincides with a broader uptick in THORChain’s network usage.

On February 25, the platform recorded 1.2 million transactions, a 20% increase from the prior day, signaling robust engagement.

Also, the total value locked in the protocol stands at $134.78 million according to DeFiLlama, testament to its utility in facilitating seamless asset exchanges.

Yet, this very utility draws scrutiny following the actions of the sophisticated Bybit exploiter, raising questions about the platform’s dual-edged nature.

The Bybit exploiter’s cross-chain manoeuvre

On February 25, at 14:30 UTC, blockchain analytics firm MistTrack_io reported a staggering transfer where a wallet linked to the Bybit exploiter bridged over 70,000 ETH, valued at approximately $161 million at the time, into Bitcoin (BTC) via THORChain.

Tracked via the MistTrack dashboard, this wallet, identifiable by its Ethereum address, had been active across multiple DeFi protocols, executing 10,000 transactions in the preceding week.

The cross-chain transactions coincided with palpable market turbulence, as Ethereum’s price dipped 3.5% to $2,300 in the hour before the transfer and slid an additional 1.2% to $2,270 within 30 minutes after.

The implications of this event ripple across the market.

The ETH/BTC trading pair on Binance saw a 15% volume surge to 5,000 BTC within an hour of the transfer, while the RUNE/BTC pair jumped 25% to 2,500 BTC, highlighting trader reactions to the news.

Analysts suggest the exploiter’s strategy may involve diversifying their holdings or obfuscating the trail of ill-gotten gains through Bitcoin (BTC), a more established asset.

THORChain’s anonymous swap mechanism, while a boon for privacy-focused users, amplifies its vulnerability to such laundering activities, spotlighting the platform’s role in the interconnected web of blockchain networks.

However, despite the shadow cast by this high-profile exploit, RUNE’s price has defied gravity, soaring nearly 20% in the subsequent 24 hours.

This resilience may stem from the market’s focus on THORChain’s underlying value proposition rather than its misuse.

The protocol’s ability to handle significant volumes, evidenced by the $1.268 billion traded in a single day, reinforces its position as a vital cog in the DeFi machine.

Traders appear to be capitalizing on the heightened volatility, with the RUNE/BTC pair’s surge indicating profit-taking opportunities amid the chaos.

However, whether this momentum can sustain itself remains uncertain, particularly as regulatory and ethical debates surrounding cross-chain platforms intensify.