Router Protocol’s Native Token ROUTE Bounces: Time to Buy?

• Router Protocol launches Nitro, enhancing cross-chain interoperability with diverse blockchain support.
• Clarifies deflationary token supply amid community concerns, emphasizing transparent governance process.

Router Protocol, an L1 chain utilizing the Cosmos SDK and designed for interoperability, unveiled its latest cross-chain solution, Nitro, on the mainnet. This intent-based cross-chain bridge, built on the router chain, boasts broad support for EVM, non-EVM, and zkEVM chains, along with additional security modules and Oracle security.

However, the community was thrown into some FUD regarding the token supply. Responding to concerns, the Router team clarified the tokenomics in a detailed summary. The overall ROUTE supply is 20 million, remaining a deflationary token. 

They also acknowledged the confusion, attributing it to a placeholder number used during the Cosmos chain launch, aligning with the narrative of other L1s/L2s with a 1 billion total supply. And emphasized that the 1 billion token number is merely a placeholder, offering multiple future options for tokenomics changes through proper community engagement.

Moreover, Router Protocol released a tokenomics proposal for Router Chain. Their tweets urged the community to engage in constructive discussions to shape the future of chain abstraction and interoperability.

ROUTE Bulls to Gain Strength?

Amidst these developments, the native token ROUTE experienced a dip. It hit a monthly low of $4 after reaching a two-year high of $10 earlier in January. However, it has shown resilience, recovering by surging 18% in the past 24 hours and currently trading at $5.22.

Analysis of Route’s price movements paints a precarious picture. The daily chart shows a bearish trend, with the 9-day exponential moving average (EMA) currently positioned below the trading price at $4.981. However, the daily relative strength index (RSI) suggests an oversold condition, standing at 37.