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Most people don’t realize that blockchains operate in isolation, like islands separated by vast oceans. Moving assets between them—say, from Bitcoin to Ethereum—isn’t straightforward and often requires complex workarounds. That’s the problem THORChain (RUNE) set out to solve back in 2018. Today, it enables seamless cross-chain asset swaps between major networks like Bitcoin, Ethereum, and BNB Chain, all without relying on wrapped tokens or centralized intermediaries.
Want to know all there is to know about THORChain? In this THORChain overview article, we provide you with a simple explanation of ‘what is THORChain’. You will also learn all there is to know about its native token, RUNE, and understand what makes RUNE unique. We will also go through some of the best RUNE wallets in the market today.
THORChain offers something rare in the crypto world: native cross-chain swaps. For anyone who self-custodies their assets and uses decentralized finance (DeFi) regularly, you’ll know how frustrating it is to swap tokens between incompatible chains, like Bitcoin and Ethereum, without relying on a centralized crypto exchange. For years, I’ve had to go through those centralized routes myself. Now, THORChain provides the most decentralized alternative available for making those swaps. That said, the platform isn’t the most beginner-friendly. The unfamiliar interface and fee model can be intimidating for new users. Still, I’d argue that THORChain has found product-market fit, especially among users who value decentralization and anonymity above all else. Just ask the North Korean hackers who used it to launder funds (but more on that later).Our Take on THORChain Crypto Project
THORChain (RUNE) Review: Summary
In this article, we will first discuss the technical terms you need to know to better understand THORChain. Note that THORChain can be a difficult concept to understand, so we urge readers not to skip the technical terms section. Thereafter, we will explain what THORChain is, the vision behind the project, and its history, and we will tell you all the details about its development team.
The second half of the article will dive deep into the utility, supply, and distribution of THORChain’s native token RUNE. We will also analyse key on-chain metrics such as the number of RUNE holders and overall transactions to assess the adoption of the THORChain blockchain. Lastly, you will find a note on THORChain staking and recommendations of the best crypto wallets that support the RUNE crypto project.
Key Takeaways
- THORChain is an L1 blockchain that specialises in cross-chain token swaps. The protocol allows users to trade native tokens between different blockchains.
- This blockchain uses a technique known as a continuous liquidity pool, where all liquidity pool tokens are paired with the RUNE token.
- A dynamic incentive mechanism called the Incentive Pendulum balances protocol rewards between validators and liquidity providers.
- A systematic failure caused by the unfavorable market performance of the RUNE coin caused THORChain’s lending program to become insolvent in 2025.
- Bybit hackers used THORChain to launder stolen ETH in February 2025.
Terms You Need to Know Before Understanding THORChain
What is THORChain (RUNE)?
THORChain is a layer one (L1) blockchain specializing in cross-chain token swaps. THORChain operates a decentralized exchange (DEX) that allows users to trade native tokens between different blockchains, eliminating the need to use wrapped tokens. The blockchain has a native token called RUNE.
THORChain is developed using the Cosmos SDK and Tendermint consensus protocol. This design allows THORChain to be application-specific and performance-focused. Having said that, the ethos of decentralization is a core part of THORChain. The blockchain project was first conceptualized in 2018 to facilitate token swaps without the need to depend on centralized exchanges and third-party intermediaries.
In 2023, THORChain expanded its DeFi offerings and introduced crypto lending on its platform. However, a systematic failure caused by the unfavorable market performance of the RUNE token made THORChain’s lending program insolvent. THORChain suspended its decentralized lending program in 2025.
History of THORChain Crypto
The idea of creating THORChain—a DEX that specializes in cross-chain swaps—was first conceived in 2018 by a team participating in the Binance Dexathon competition. In July 2018, THORChain’s development team published the first whitepaper, which discussed a decentralized exchange protocol that aimed to offer the high throughput and performance of centralized crypto exchanges while maintaining decentralization and censorship resistance.
The following year, THORChain’s core development team created the RUNE token as a BEP-20 token on the Binance Smart Chain (BNB Chain). The team conducted an initial DEX offering (IDO) of the RUNE token on July 20, 2019.
In 2020, THORChain launched its first public testnet. The project offered RUNE token rewards to developers and users who built products and tested the blockchain. In April 2021, THORChain announced the release of its “Multichain Chaosnet (MCCN)” blockchain that enabled cross-chain swaps between Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Binance Chain.
Most notably, the launch of MCCN saw the introduction of native RUNE on THORChain. Original RUNE tokens minted on Binance and Ethereum were slowly phased out. Four years after publishing its whitepaper, THORChain network finally announced the achievement of its mainnet in June 2022. According to THORChain’s blog post,
“THORChain is now a mature and battle-tested cross-chain Defi protocol. Over the past 4 years, THORChain has transitioned from a centrally controlled project to a community-driven project whose network is solely controlled by 100 decentralised nodes.”
About the THORChain Team
Initially, THORChain’s team had chosen to remain anonymous. The team even took to Twitter to say that the anonymity of its founding and development team will ensure that the project will remain decentralized. However, in 2024, John-Paul Thorbjornsen, aka JP Thor, revealed himself to be the founder of the THORChain project. Since 2018, Thorbjornsen had been operating THORChain under the pseudonym “Leena.”
THORChain later revealed that the project was founded by a group of contributors, among whom Chad Barraford was a member. The project added that a team called “Nine Realms” has publicly taken over the management and maintenance of THORChain operations. Nine Realms, led by Gavin McDermott, has a team of around nine developers. In addition, about 40 other developers and community members contribute to building and supporting the THORChain ecosystem.
Who is the Founder of the THORChain Project?
John-Paul Thorbjornsen is the founder of THORChain. He was born in Bathurst Island, Australia. After being homeschooled, Thorbjornsen joined the Air Force and studied Aeronautical Engineering. He graduated with honours in 2009, according to his official website.
In 2013, Thorbjornsen’s interests were directed towards the crypto industry. In 2018, He brought together a team of five engineers to build a decentralized exchange called THORChain.
Vision of the RUNE Blockchain Project
THORChain was built to enable decentralized, non-custodial trading of tokens across multiple blockchains. THORChain looks to offer an alternative to centralized crypto exchanges (CEX), which prioritize features, performance, and ease of use, but retain power to freeze accounts, censor transactions, and restrict access to user funds.
Over the past decade, the collapse of several CEXs—most notably FTX in 2022—has left countless investors unable to recover their assets. THORChain addresses this risk by offering a decentralized exchange where users maintain full control over their tokens at all times.
THORChain also looks to improve on the existing decentralized trading solutions. It looks to offer an optimized infrastructure to offer high performance capable of matching its centralized counterparts. Most importantly, THORChain was created to allow users to swap native tokens across incompatible blockchains. When THORChain was conceptualized in 2018, crypto investors depended on wrapped tokens to gain exposure to cryptocurrencies that existed on different blockchains—THORChain, in its first whitepaper, said,
“The market needs a decentralized exchange that adheres to the core tenets of decentralization and still provides a world-class exchange experience that meets the features and performance standards set by centralized exchanges.”
What Problems Does THORChain Solve?
Here are the main problems that THORChain solves: RUNE is the native token on THORChain. It is at the centre of THORChain’s functionality, acting as a bridging and settlement asset that enables DeFi cross-chain swaps. In this section, we explain everything you need to know about RUNE. The maximum supply of the RUNE token is 500 million. In October 2018, all 500 million RUNE tokens were created at Genesis and placed into a smart contract for distribution and emissions. THORChain offers block rewards known as “Protocol Reserve emissions” to its node operators and liquidity providers. It has a set emission schedule, where the number of new RUNE tokens emitted every block depends on two parameters: the emission curve and the amount of RUNE remaining in the Reserve. In March 2024, THORChain passed a proposal to burn 60 million RUNE tokens held in its Standby Reserve. The token burn was implemented to scale THORChain’s lending protocol as the lending cap is based on the total amount of RUNE burned from its total supply. The total supply of RUNE tokens is about 425.64 million. Meanwhile, the circulating supply of the THORChain crypto is over 351.5 million, which represents about 70% of RUNE’s maximum supply. Here is a table showing how RUNE coin was distributed: The main use case of RUNE is its role as a bridging and settlement asset. When liquidity pools are created on THORChain, assets are paired with RUNE. This system allows RUNE to be the base token on THORChain’s continuous liquidity pool, allowing two assets to be swapped easily. Here are the other use cases of RUNE: THORChain uses a dynamic incentive mechanism called the Incentive Pendulum to balance protocol rewards between validators and liquidity providers. For context, THORChain depends on validators to secure the network and verify transactions. Meanwhile, liquidity providers supply cryptocurrency assets required to facilitate cross-chain token swaps and lending. Validators are required to deposit RUNE (aka Bonded RUNE) while liquidity providers stake RUNE token pairs (aka Pooled RUNE). Incentive Pendulum targets a ratio of Bonded RUNE to Pooled RUNE to be 2:1, which means that the THORChain network essentially wants the amount of Bonded RUNE to be double the amount of Pooled RUNE. Now we already know that THORChain rewards validators and liquidity providers with block rewards. Whenever the Bonded-RUNE-to-Pooled-RUNE ratio falls below 2, the Incentive Pendulum kicks in and more block rewards are sent to validators. When the ratio rises above 2, more block rewards are sent to liquidity providers to incentivize the inflow of liquidity to the THORChain ecosystem. THORChain aims for minimal governance. Therefore, the governance power of RUNE holders is mainly restricted to listing and delisting of tokens and chains. Here is a summary of on-chain governance on THORChain: Here are the key market and external forces that affect the price of RUNE: In this section, we will discuss the blockchain architecture that powers THORChain’s ecosystem. By the end, you will have a clear understanding of how THORChain facilitates cross-chain swaps across incompatible blockchains. Here are the key components of THORChain, which will help you understand the architecture behind the interoperability protocol: THORChain is built using the Cosmos software development kit (SDK), a framework designed for creating custom blockchain networks. Blockchains developed with the Cosmos SDK are typically application-specific—THORChain, for instance, is purpose-built to facilitate cross-chain token swaps. According to THORChain, the use of the Cosmos SDK allows several benefits, which include: THORChain’s application layer is Rujira, which deploys decentralized applications on its blockchain. Meanwhile, this blockchain uses a smart contract platform called CosmWasm to program smart contracts for applications and tokens. According to THORChain, using CosmWasm enables cross-chain interoperability and allows developers to write contracts in popular languages such as Rust. THORChain is an application-specific blockchain designed for high scalability and performance. According to its whitepaper, the network can handle up to 10,000 transactions per second (TPS), with an ambitious target of reaching 1 million TPS. At its peak, THORChain has processed up to 100,000 swaps in a single day. Let’s summarize the standout feature of THORChain: Smart contract audit firm Cyberscope gave THORChain a score of 88 out of 100, placing it in the top 10% of all crypto projects audited by the firm. THORChain received particularly high marks—over 90%—in three of the six assessment categories: Security, Vitals, and Market. CertiK also rated THORChain highly, giving it a score of 89.75 out of 100. Its real-time evaluation system, Skynet Score, assessed the project across six key categories: code security, market performance, governance, operational risk, community, and fundamentals. Pros: Cons: In this section, we talk about THORChain’s performance in the crypto market before proceeding to analyze key on-chain metrics and the project’s social media reach. Early market data on CoinMarketCap showed THORChain’s native token RUNE trading at a price of $0.017 in July 2019. It was during the bull run of 2020-2021 that RUNE would see a big price increase. The token eventually hit an all-time high price of $21.26 on May 19, 2021. During the bull run of 2023-2024, RUNE was unable to set new all-time highs as the token peaked just over $10 in March 2024. In 2025, RUNE saw enormous selling pressure after THORChain was forced to suspend its decentralized lending program due to insolvency concerns. On-chain metrics compiled by THORCharts showed the THORChain has been on a strong growth trajectory over the last four years, with cumulative trading volume increasing from $33 million in April 2021 to over $104 billion in April 2025. Cumulative new wallet addresses on THORChain increased from about 1.8K in April 2021 to over 131K in April 2025. THORCharts data also showed that THORChain’s smart contracts and liquidity pools held total value locked (TVL) of over $270 million. THORChain has official channels on X, Reddit, and Telegram. THORChain’s X profile has over 282.1K followers. In comparison, rival DEX project Uniswap has over 1.4 million, PancakeSwap has over 2.1 million, and dYdX has about 277K. THORChain’s Reddit channel boasted over 13K members, while the project’s Telegram channel had nearly 14K members – of course, all of this at the time of this writing. Well, this data clearly shows that while THORChain has an active and growing community, its social media presence is relatively smaller compared to major decentralized exchange (DEX) competitors. The crypto community regards Thorchain as an “OG” blockchain project that offers unique solutions such as native cross-chain swaps. However, the 2025 debacle of its decentralized lending program, THORFi, has hurt its reputation. Crypto research firm Messari wrote in a report that the unwinding of THORFi was a “painful chapter” for THORChain. Still, it also demonstrated the protocol’s resilience—showcasing its capacity to self-correct through decentralized governance and practical reforms. The crypto community also criticised THORChain after Bybit hackers used it to launder stolen ETH in February 2025. It was later revealed that the Bybit exchange hackers were members of the notorious North Korean hacking group Lazarus. A report by blockchain security firm Nefture highlighted that the Bybit hack started a heated debate about censorship. It said, “ThorChain found itself at the center of the money laundering storm, leading to internal strife between proponents of maintaining censorship resistance and those advocating for incorporating censorship at the protocol level, or at least temporarily, to stop North Korean threat actors.” Uniswap is the most popular decentralized exchange in the world, with a market cap of over $3.7 billion (at the time of writing), making it the 28th most valuable crypto project in the world. Let’s see how THORChain compares to this on-chain trading juggernaut. Your decision to invest in RUNE ultimately depends on your risk tolerance, market conditions, technical analysis, and personal investment goals. Here is a quick summary of RUNE’s market performance to help you in your token analysis. THORChain’s RUNE token has not been able to breach its all-time high of $21, last hit in May 2021. The token failed to test its record high during the recent bull run of 2023-2024 despite seeing the likes of Bitcoin and Solana scale multiple peaks. Meanwhile, the controversy and bad sentiment related to the Bybit exploit laundering on THORChain and the failure of THORChain’s lending program have soured investor sentiment for the RUNE token. According to a price prediction by crypto exchange MEXC, RUNE is expected to rise to over $1.60 by 2026 and reach $1.70 by 2030. Looking further ahead, MEXC forecasts the token could trade at $2.80 by 2040. You can buy RUNE coins on centralized exchanges such as Binance, Bybit, Bitget, MEXC, Gate.io, and KuCoin. DeFi users may find it difficult to get their hands on RUNE as THORChain operates on a standalone blockchain. This means that the RUNE token is unavailable as a native asset on popular DEXes such as Uniswap and PancakeSwap. On-chain traders will have to use the DEX app on THORChain to buy and sell native RUNE tokens. To know the step-by-step method of buying RUNE, check out our guide on “How to Buy THORChain in 2025.” Here are the top non-custodial crypto wallets that support THORChain and RUNE. Below, you will find a mix of software and hardware wallets. If convenience and ease of use are your priorities, we urge you to use hot wallets. Those looking for security can opt for cold wallets. THORChain doesn’t have traditional staking like proof of stake chains. Instead, you earn yield on your RUNE tokens by providing liquidity to THORChain’s pools. Here are the steps you need to follow: Looking forward, I see the competition in the blockchain interoperability solutions sector heating up. Lately, the crypto industry has been on a mission to simplify the on-chain user experience. In this regard, liquidity fragmentation and blockchain isolation have been identified as two key challenges. THORChain, while currently a leader in native cross-chain swaps, may find its position challenged as more players enter the space. Uniswap, for example, has already introduced native token cross-chain swaps, offering a familiar interface that could appeal to a broader user base. In the near term, THORChain has to regain investor confidence following the collapse of its decentralized lending operation. Blockchain interoperability has long been a key challenge in the crypto space. THORChain has positioned itself as a leader in tackling this issue, carving out a niche in native cross-chain swaps. Since 2018, it has been developing its own standalone layer-1 blockchain, enabling the protocol to fine-tune its infrastructure for better performance and efficiency. THORChain is currently providing interoperability solutions you won’t find anywhere else. If you’ve ever had to rely on centralized exchanges to swap ETH for BTC or the other way around, you’re not alone. With THORChain, you can skip those platforms entirely and make your swaps directly—helping you stay aligned with the decentralized spirit of crypto. Now that you understand what is THORChain, you’re better equipped to find out its potential and make informed decisions. However, no matter how promising the blockchain may seem or how optimistic the token’s future appears, always invest only what you can afford to lose. See Also: What is THORChain in crypto? THORChain is an L1 blockchain that specializes in cross-chain swaps. THORChain operates a decentralized exchange that allows users to trade native tokens between different blockchains, eliminating the need to use wrapped tokens. What is the RUNE token used for? RUNE is the native token on THORChain. The token is central to THORChain’s functionality as it acts as a bridging and settlement asset that enables cross-chain swaps. Why is THORChain unique? Features such as native cross-chain swaps, continuous liquidity pools, and the Incentive Pendulum mechanism make THORChain unique. Can I earn rewards on THORChain? You can earn rewards by providing liquidity to THORChain’s liquidity pools. Is THORChain the same as a bridge? No, THORChain is an L1 blockchain that specializes in cross-chain swaps. It operates a decentralized exchange that allows users to trade native tokens between different blockchains, eliminating the need to use wrapped tokens. Which wallets support THORChain? Trust Wallet, THORWallet, and Ledger hardware wallets are among the crypto wallets that support THORChain. How does THORChain avoid using wrapped tokens? THORChain avoids wrapped tokens by managing vaults that hold native BTC, ETH, and other assets on respective blockchains. How does THORChain compare to Uniswap or PancakeSwap? THORChain is a purpose-built blockchain designed specifically for cross-chain swaps. In contrast, Uniswap and PancakeSwap are decentralized exchange protocols that operate on top of existing layer-1 blockchains. Where can I buy RUNE? You can buy RUNE coins on centralized exchanges such as Binance, Bybit, Bitget, MEXC, Gate.io, and KuCoin. Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days. Weekly Research Monthly readers Expert contributors Crypto Projects Reviewed
THORChain Tokenomics
RUNE Token Supply
RUNE Coin Distribution & Allocation
Distribution
Number of tokens
Percentage of max supply
Seed
25 million
5%
Initial DEX Offering (IDO)
80 million
16%
Team of developers
50 million
10%
Users – Bootstrap participation
120 million
24%
Protocol Reserve
220 million
44%
RUNE Utility & Use Cases
Economic Model & Incentives
Governance & Protocol Control
RUNE’s Market Dynamics & External Factors
How Does THORChain Work?
Architecture Behind the RUNE Coin
RUNE’s Blockchain Structure
Token Standards & Smart Contracts
Scalability & Performance
THORChain’s Standout Features
RUNE’s Audit Report
Benefits and Drawbacks of RUNE Coin
THORChain Coin’s Analytics
RUNE’s On-Chain Metrics
Social Media Analysis
What Do Experts Think About RUNE?
THORChain vs. Uniswap
Feature
THORChain
Uniswap
Type
Cross-chain DEX with a standalone L1
DEX protocol on various blockchains
Blockchain
THORChain L1
Built on top of Ethereum, Polygon, Base, Avalanche, and more. Has an L2 chain called Unichain.
Native Token
RUNE
UNI
Market cap and rank (As of this writing)
$481 million, 119th most valuable in the world
$3.7 billion, 28th most valuable in the world
Native Cross-Chain Swaps
Yes
Yes, via Across Protocol
Smart Contracts
Yes
Yes
Liquidity Model
Continuous Liquidity Pools
Automated Market Maker
Gas Fees
Network-dependent
Paid in ETH or respective native tokens
Wallet Compatibility
Native wallets like XDEFI, Trust Wallet, etc.
MetaMask, Coinbase Wallet, etc.
Yield Opportunities
Liquidity provisioning and node operation
Liquidity provisioning fees, concentrated liquidity
Governance
Minimal token governance
UNI token-based governance
Privacy
Pseudonymous, no KYC
Pseudonymous, no KYC
Decentralization
High (no wrapped assets or centralized bridges)
High (though reliant on Ethereum infrastructure)
Is RUNE a Buy?
How to Buy RUNE Coins?
Best RUNE Wallets
How to Stake THORChain (RUNE)?
THORChain’s Future: What To Expect?
Conclusion: What is THORChain?
References
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