THORChain Chooses Marketing Over Burning: Can RUNE USD Exceed $2?

THORChain stands as one of the foremost DeFi platforms, excelling in cross-chain coin exchanges. Although it boasts a crypto market capitalization in the hundreds of millions and facilitates weekly trades amounting to millions of dollars in assets, its native token, RUNE, has experienced difficulties. Following an impressive conclusion to 2024, RUNE USD came under significant selling pressure. The prices not only retraced most of the Q4 2024 gains but also dipped below 2024’s low points, plummeting to levels seen in September 2023.

(Source: TradingView RUNEUSDT)

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RUNE Crypto Has Plummeted 93% From Its Peak: Will Buyers Return?

According to Coingecko data, RUNE ▼-0.83% crypto has dropped 93% from its peak of approximately $21. Nevertheless, early investors have seen a remarkable 155x increase from an all-time low of $0.008513 in late September 2019. While current prices have steadied, RUNE USD remains pessimistic from a macro perspective. An effort to recover in early May 2025 was unsuccessful as the upward momentum diminished.

Chartists identify the local price ceiling level around $2.5 as critical for buyers to overcome to maintain upward momentum. In contrast, local support levels are approximately at $1.3 and $0.90.

A drop beneath the April 2025 low might trigger further sell-offs, potentially exacerbating losses from Q1 2025 to below 2023 lows. Such a scenario could severely impact holders and incite panic, accelerating the downturn that might hinder capital influx into some of the premier meme token ICOs.

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THORChain Proposes a Marketing Fund, Abandons RUNE Crypto Burning

The developers at THORChain understand the stakes, prompting them to propose the establishment of a Marketing Fund via ADR021. RUNE holders will vote on this initiative, and if accepted, it will introduce crucial changes to strategically promote RUNE and THORChain in both crypto and traditional media. As outlined in the proposal, 5% of the protocol’s revenue that was previously intended for RUNE burning will now be redirected to this marketing fund.

ADR021 – MARKETING FUND ALLOCATION

ADR021 has been submitted. Check it out and join the discussion in Discord to share your thoughts.

PROPOSAL
Allocate 5% of protocol revenue to a Marketing Fund to enhance adoption and brand recognition for THORChain.

FUND USE CASES… https://t.co/FRYqkMIqE4 pic.twitter.com/raBx16RHVa

— THORChain (@THORChain) August 18, 2025

The initiative aims to elevate adoption and brand visibility. To launch this effort, the fund will begin with a $250,000 allocation from the treasury. The distribution will be determined by RUNE holders through Mimir, THORChain’s governance system driven by nodes.

Once it becomes active, the fund will prioritize SEO to enhance traffic towards the platform via frontends like THORSwap and AsgardX. Additionally, initiatives will be taken in PR and media outreach to secure coverage on leading platforms, accentuating the protocol’s primary value propositions, such as its capability for cross-chain exchanges. Plans are also in place to accelerate frontend integration and broaden the cross-chain DEX ecosystem.

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Consequences of Halting RUNE Burning: Will RUNE USD Exceed $2?

While the proposal for the marketing fund is appealing, especially in the face of fierce competition within DeFi, THORChain also intends to cease the practice of burning 5% of the protocol’s revenue. The initial purpose of this burning was to decrease RUNE’s circulating supply.

Given that burning can stabilize prices through supply reduction, this proposal implies that additional tokens will circulate. Moreover, channeling funds to third parties increases the likelihood of RUNE being liquidated for cash, exerting further pressure on the token.

Learning from previous challenges is crucial. During the January 2025 crisis, an excessive minting of RUNE for THORFi debt repayments outstripped burning, leading to a drop in RUNE crypto prices. To curb the decline and stabilize prices, the team launched TCY, alleviating some minting requirements.

ADR021 introduces new dynamics that could prompt a short-term dump if approved. However, in the long run, THORChain might draw in more users, leading to increased trading volumes and revenue, potentially pushing RUNE crypto prices in the secondary market up to $2.

THORChain $RUNE could further consolidate before experiencing a optimistic upward movement towards $2. pic.twitter.com/9hQjzMgJgn

— Ali (@ali_charts) August 16, 2025

The potential for RUNE to bounce back from this transitional phase should not be dismissed. THORChain has been actively working to rebuild trust, as evidenced in May 2025 when they launched TCY, addressing THORFi’s obligations without increasing RUNE supply. Following TCY’s release, RUNE USD prices surged, with gains exceeding 60% in May 2025.

Additionally, there are ambitions to incorporate more blockchains, supporting some of the top cryptos to acquire, such as Tron, TON, and the XRP Database. This strategy aims to broaden trading activities, in line with the increasing total value locked (TVL), which currently exceeds $80 million.

(Source: DefiLlama)

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