THORChain Forgoes Burning for Marketing: Will RUNE USD Break $2?

THORChain is one of the largest DeFi platforms and a leader in cross-chain token swapping. Despite commanding hundreds of millions in market cap and enabling weekly trading of millions worth of assets, its native token, RUNE, has faced it tough. After a spectacular end to 2024, RUNE USD came under immense selling pressure. Prices not only reversed gains from most of Q4 2024 but also fell below 2024 lows, sinking to September 2023 levels.

(Source: TradingView RUNEUSDT)

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RUNE Crypto Down 93% From All-Time Highs: Will Buyers Make a Comeback?

Based on Coingecko data, RUNE ▼-0.83% crypto is down 93% from its all-time high of around $21. However, for early investors, the token is up an impressive 155x, rising from an all-time low of $0.008513 in late September 2019. Although prices are stable at current rates, RUNE USD remains bearish from a top-down perspective. While there was an attempt to push higher in early May 2025, the upside momentum faded.

For this reason, chartists view the local resistance at around $2.5 as a critical level that buyers must break to sustain upward momentum. Conversely, local support levels are at approximately $1.3 and $0.90.

A drop below the April 2025 low could trigger further sell-offs, possibly extending losses from Q1 2025 to below 2023 lows. Such a drop could devastate holders and spark panic, accelerating the downturn that might slow down capital inflow to some of the best meme coin ICOs.

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THORChain Proposes a Marketing Fund, Forgoes RUNE Crypto Burning

THORChain developers are well aware of the stakes, which is why they have proposed creating a Marketing Fund via ADR021. RUNE holders will vote on the proposal, and if it passes, it will introduce key changes to aggressively market RUNE and THORChain in crypto and traditional media channels. According to the proposal, 5% of protocol revenue previously allocated to RUNE burning will be redirected to a 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 drive adoption and brand awareness for THORChain.

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

— THORChain (@THORChain) August 18, 2025

The team aims to boost adoption and brand awareness. To kick things off, the fund will be seeded with $250,000 from the treasury. Its allocation will depend on what RUNE holders decide via Mimir, THORChain’s node-driven governance system.

Once operational, the fund will focus on SEO to drive traffic to the protocol via frontends like THORSwap and AsgardX. Additionally, efforts will be made in PR and media to secure coverage on top platforms, highlighting the protocol’s core value propositions, including its cross-chain swapping capabilities. There will also be initiatives to fast-track frontend integration and expand the cross-chain DEX’s ecosystem.

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Impact of Canceling RUNE Burning: Will RUNE USD Break $2?

While the marketing fund proposal is attractive and welcomed amid intense competition in DeFi, THORChain also plans to stop burning 5% of protocol revenue. Initially, burning this allocation aimed to reduce RUNE’s circulating supply.

Since burning can stabilize prices by reducing supply, this proposal means more tokens will enter circulation. Additionally, as funds are channeled to third parties, there is a high probability of RUNE being liquidated for cash, adding more pressure on the coin.

There are lessons to be learned from the past. During the January 2025 crisis, excessive RUNE minting for THORFi debt repayments outpaced burning, causing RUNE crypto prices to fall. To slow the decline and stabilize prices, the team launched TCY, reducing minting needs.

ADR021 introduces new dynamics that, if passed, could lead to a short-term sell-off. However, in the long term, THORChain may attract more users, increasing trading volume and revenue, lifting RUNE crypto prices in the secondary market to as high as $2.

THORChain $RUNE may consolidate further before a bullish breakout to $2. pic.twitter.com/9hQjzMgJgn

— Ali (@ali_charts) August 16, 2025

There is no discounting the possibility of RUNE recovering from this trade-off. THORChain has been rebuilding trust, and in May 2025, for example, they released TCY, addressing THORFi’s liabilities without minting more RUNE. Days after TCY’s distribution, RUNE USD prices rose, gaining over 60% in May 2025 alone.

There are also plans to integrate more blockchains, powering some of the best cryptos to buy, including Tron, TON, and the XRP Ledger. The goal is to diversify trading activity, aligning with the rising total value locked (TVL), which currently stands at over $80 million.

(Source: DefiLlama)

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