THORChain (RUNE) staged a strong comeback yesterday, surging 26% after a steady run that saw the token rise a total of 51% over the past week. Over the last few days THORChain has drawn increasing attention from crypto traders and enthusiasts.
At the time of writing, RUNE is trading at $5.57 after reaching an intraday high of $5.77 and a low of $5.25.
What is THORChain (RUNE)?
Before examining the drivers behind RUNE’s recent rally, it helps to recap what THORChain actually is. THORChain is a decentralized liquidity protocol that enables users to swap cryptocurrency assets while retaining full custody of their funds. Its native token is called RUNE.
Why is RUNE’s price rising?
Several factors appear to be contributing to RUNE’s recent price surge. Two of the most significant are the integration of Terra and ongoing efforts to eliminate intermediary bridges.
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Terra integration
On March 1, 2022, THORChain announced via a tweet that the Terra integration was ready for general release. The Terra Smart Contract Auditor collaborated with THORChain developers to ensure the integration functions correctly ahead of mainnet launch.
Once the integration is complete, users on the chains connected to THORChain will be able to swap Terra stablecoins and LUNA tokens. In addition to the Terra integration, THORChain is supporting DeFiSpot, a decentralized multi-chain project built on top of THORChain that is also preparing for launch alongside Terra.
To encourage participation, the project is offering boosted APYs on certain integrated chains: recent communications highlight potential returns such as 17% for Bitcoin, 19% for native Ethereum, and up to 60% for Binance USD on specific pools. These attractive yields have likely helped draw liquidity and attention to the protocol.
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Removing intermediary bridges
Another important focus for THORChain is minimizing reliance on intermediary bridges. By enabling users to transfer assets directly across blockchains without trusted middlemen, the protocol aims to reduce points of centralization and counterparty risk—factors that appeal to users seeking more secure and permissionless cross-chain swaps.
Combined, the Terra integration and the push to remove intermediaries strengthen THORChain’s value proposition as a decentralized, cross-chain liquidity solution. These developments have helped attract liquidity and market interest, contributing to the recent price gains in RUNE.