29. [Hard] $RUNE Price after Cap Raises

    During the chaosnet phase, THORChain has limited the amount of funds stored in liquidity pools to allow for gradual growth of the ecosystem and reduce downside risk in the case of a hack. They have now gone through several periods where the caps have been raised and additional liquidity is allowed to flow into the network (you have have noticed the #RAISETHECAPS battlecry of the THORChads in the ecosystem). Is there a noticeable pattern of the price of $RUNE during these times where the caps are raised?

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    Introduction

    I could only find 2 twitter messages saying the cap has been raised.
    https://twitter.com/thorchain/status/1301293896178098176?lang=en @ 03 sept 2020 -> 250k RUNE
    https://twitter.com/thorchain/status/1314360623635992576 @ 09 Oct 2020 -> 10M RUNE
    Not sure if I have missed any other twitter messages, but we can work with that assumption that this is correct as I have seen the RUNE cap only recently upgraded to 15M

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    As Flipside's data doesn't go back before April 2021, I will use coinmarketcap's chart instead.

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    Analysis 09 Oct 2021

    Look like it went up after the caps were raised before falling once again after a week.

    Recent Raise the Cap

    Recently, the caps were raised again on 03 Nov 2021. Price followed.

    Conclusion

    People do buy into the hype when caps are raised. However, a fall in price always happens afterwards.