THORChain Releases Key Bitcoin Update: Time for RUNE Crypto to Shine?

THORChain Bitcoin update cuts confirmations from 3 to 2, and may boost RUNE crypto. Will it spark a recovery after the January 2025 crash?

When RUNE, the token that powers THORChain, began surging in early November, no one expected the rally to stall in mid-December. Later, the collapse in January 2025 came as a sucker punch. The sell-off was brutal, a dent to RUNE holders and THORChain.

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The RUNEUSDT Crash

From November to December, RUNE rose nearly 60%.

However, after peaking at around $7.465 in December, prices crashed below $4.275 and slid further to below $1 by early February.

(RUNEUSDT)

The result? An 85% drop from December highs and RUNE holders in panic.

Many worried that a LUNA-style collapse was inevitable.

It hasn’t been the same for THORChain since.

Although the team intervened by announcing the TCY airdrop, RUNEUSDT prices remain stagnant, moving sideways.

Claiming @THORChain's $TCY will be smoother than butter

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Tap, claim & auto-stake in @Thorwallet — done in seconds$TCY = @THORChain Yield → 10% of system revenue to… pic.twitter.com/B36PsZPsxC

— THORWallet (@Thorwallet) April 23, 2025

On the RUNE daily chart, the local resistance is $1.70, with support at $0.96. A bull market is unlikely to form unless buyers step in aggressively and close above the liquidation line.

The good news is that the broader crypto market recovery may catalyze demand. Additionally, the team is working to enhance its ecosystem and user experience.

Will This THORChain Bitcoin Confirmation Update Boost Prices?

Notably, THORChain is planning a game-changing update that may make RUNE one of the best cryptos to buy in 2025.

Subject to validator approval, the platform aims to reduce Bitcoin confirmation requirements from three to two.

This change could bring RUNE into the spotlight, as Bitcoin deposits on the DEX would process 33% faster, reducing latency.

In a post on X, THORChain developers explained that Bitcoin deposits currently require three confirmations, taking roughly 30 minutes.

Reducing this to two confirmations would cut the time to approximately 20 minutes.

The impact would be immediate. Not only would BTC swapping speeds increase, but the update would also reduce arbitrage opportunities and boost liquidity provision.

Faster processing speeds give traders a competitive edge in the crypto market, where milliseconds can determine profits or losses. Thus, the 10-minute gain in capital efficiency is substantial for THORChain DEX users.

From a liquidity provision perspective, trading volume will likely rise due to stronger liquidity loops, driving demand.

Will Validators Support the Proposal?

While the update is promising, safety concerns remain.

The Bitcoin network typically processes a block every 10 minutes, and some consider six confirmations necessary for a transaction to be deemed safe and irreversible.

THORChain developers argue that data supports reducing confirmations from three to two. Their findings suggest that the risk of blockchain reorganization is extremely rare, even with two confirmations.

They further note that exchanges like Binance and Coinbase, where some of the best Solana meme coins are listed, operate with two confirmations and process billions in BTC without security issues.

In the unlikely event of a reorganization, the THORChain governance system, Mimir, would immediately roll back transactions without compromising decentralization.

The community is closely monitoring validator responses. Of the 110 validators, 74 must agree for the proposal to pass.

(Source)

So far, 61 support the proposal, believing it will improve user experience and even boost prices.

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