The price of the THORChain Coin (RUNE) rebounded strongly today after the THORChain network processed over $320 million in swaps within 24 hours. This comes after rumors about insolvency surfaced when the platform paused Bitcoin and Ether withdrawals.
The THORChain team shared this update with their followers on X early on Saturday, January 25. They noted that the network handled $320 million in swap volume over the last 24 hours, showing it still functions well. Despite the rumors causing fear and uncertainty, all operations, including swaps and RUNE transfers, are working smoothly.
RUNE Price Struggled Amid Insolvency FUD
THORChain is a decentralized exchange infrastructure allowing users to swap assets across blockchains. It uses its native token, RUNE, which becomes more valuable as more assets are deposited on the network.
However, on January 24, THORChain paused withdrawals for Bitcoin (BTC) and Ether (ETH) in its lending and savers programs to avoid a risk of insolvency.
While THORChain’s main service of cross-chain swaps continues to function, crypto enthusiast Erik Voorhees provided updates about the situation, confirming details shared in THORChain’s Telegram groups. Network node operators voted to pause operations for 90 days, starting early Friday morning, to develop a plan for resolving debts.
An insolvency risk could arise if all loans and savers accounts were closed and repaid simultaneously, coupled with a market drop in the RUNE price.
THORChain meets its lending commitments by creating RUNE coins and selling them in liquidity pools. Because of growing concerns about this risk, deposits were stopped a year ago.
To deal with the current situation, THORChain is exploring ways to restructure its debt. One option may be turning claims into tokens and allowing debt holders to sell their claims in an auction. This would stabilize the platform and preserve its value.
Due to fear, uncertainty, and doubt (FUD) surrounding the incident, the THORChain coin price fell more than 30%, dropping from over $3 to around $1.90. In just the last seven days, it decreased by 29.29%, with a total decline of 44.13% over the past month.
THORChain Coin Returns with a 30% Price Surge
Today, THORChain (RUNE)’s price has increased by 29.75%, trading at $2.71 at press time. This RUNE price increase makes it one of the best-performing coins in the top 100 by market cap. As of now, THORChain has a market capitalization of $951 million and a 24-hour trading volume of about $760 million, per Coinmarketcap data.
However, some believe this recent situation could be similar to what happened with the Terra blockchain in May 2022, when its stablecoin, TerraUSD (UST), and LUNA crashed to nearly zero, leading to an almost $45 billion loss.
On the other hand, many others in the community think that the recent THORChain issues are good for the $RUNE token.
They think it might resemble the massive crash in the Solana (SOL) price, which fell from its all-time high of $258 in November 2021 to under $10 in December 2022 but then recovered strongly.
Since that crash, the Solana price has risen impressively, reaching new highs of $294.33 on January 19, 2025, a 2870.7% increase from the price crash. It is now one of the top 5 largest coins in the world.
The future price of THORChain Coin (RUNE) will depend on how the project handles its debt restructuring and finds ways to rebuild trust in the protocol.
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