RUNE Soars 687% in 24 Hours Amid Network Upgrades and Analyst Optimism

On May 31, 2025, RUNE, the native token of the ThorChain decentralized liquidity network, surged 687.48% over 24 hours to reach $1.6995. Despite this sharp short-term gain, the token declined 1,167.58% week-over-week and 6,189.99% year-over-year, reflecting volatile market conditions. Over a month, however, RUNE climbed 2,631.38%, indicating prolonged interest in the asset.

Network Upgrades Drive Immediate Rally
The rapid price increase coincided with the announcement of a significant upgrade to ThorChain’s protocol. Developers revealed improvements to the network’s atomic swap functionality, which facilitates cross-chain asset transfers. These changes aim to reduce transaction fees by 50% and enhance liquidity pool efficiency. Analysts highlighted that such technical enhancements often correlate with increased demand for RUNE as institutional and retail investors seek exposure to high-performance decentralized finance (DeFi) infrastructure.

Analysts Highlight Structural Improvements
Analysts project that the upgrade could stabilize RUNE’s long-term value by addressing scalability concerns. A technical report noted that reduced fees may attract larger liquidity providers, potentially narrowing the token’s price volatility. However, these predictions remain speculative, as market adoption of the upgrades has yet to be demonstrated.

Market Sentiment Contrasts Short-Term Volatility
While the 24-hour surge drew attention, traders emphasized the token’s wider fluctuations. Year-to-date figures show RUNE’s value has faced persistent downward pressure, with its all-time high of over $100 in 2023 now far surpassed. This divergence underscores investor focus on near-term catalysts rather than sustained performance.

RUNE vs. Competing Protocols
Comparisons to other decentralized exchange networks, such as Uniswap and SushiSwap, revealed mixed signals. RUNE’s price rebound outpaced peers in the short term, but its annual decline lagged behind broader DeFi sector gains. Analysts suggested this disparity reflects ThorChain’s niche focus on cross-chain interoperability, which may limit mass adoption but appeal to specialized users.

Challenges Ahead for ThorChain
Despite the recent gains, ThorChain’s ecosystem faces hurdles. The network’s uptime reliability has been cited as a concern, with past outages impacting user confidence. Additionally, the reduced transaction fees could strain liquidity pool incentives, potentially deterring long-term participation.

Investor Caution Amid Speculation
Market participants urged caution, noting that RUNE’s price swings often amplify during protocol updates. While the upgrade addresses key technical barriers, its real-world impact on trading volumes and user growth remains unproven.

The token’s performance since May 31 highlights the tension between short-term technical optimism and the broader DeFi market’s skepticism toward legacy protocols. RUNE’s trajectory will depend on execution of upgrades, adoption rates, and its ability to counteract prolonged declines.