news 
THORChain Struggles Deepen as RUNE Drops 82 Percent Amid Debt and Validator Backlash
The cryptocurrency market is no stranger to dramatic price swings, but the recent decline of RUNE (Thorchain) has left many investors reeling. The token has plummeted by a staggering 82 percent since December 10, 2024, sparking concerns over the platform’s financial viability.
RUNE’s debt crisis continues to deepen as THORChain faces backlash from its validator community. In an effort to address its financial woes, the platform recently proposed reducing validator rewards, which has been met with widespread disapproval. This move has only added fuel to the fire, further eroding investor confidence in THORChain.
The token’s sharp decline can be attributed to a combination of factors, including RUNE’s debt obligations and a bearish trend that shows little signs of abating. Technical indicators suggest a prolonged downward trajectory for RUNE, with no clear reversal in sight.
As the market struggles to find stability, analysts are sounding the alarm over the unsustainable inflationary risks embedded within THORChain’s financial model. This echoes concerns surrounding Luna’s collapse and raises questions about the sustainability of the platform’s debt structure.
The latest technical analysis indicates a strong bearish trend for RUNE, with two key resistance points hindering any potential upward momentum. The token has failed to break through these barriers, leading to a sharp decline that shows no signs of slowing down.
Market sentiment remains firmly in the red as trading volume continues to soar, signaling sustained selling pressure. With its market structure now exhibiting strong bearish momentum, many investors are questioning THORChain’s ability to recover from this financial crisis.
The proposed reduction in validator rewards has only exacerbated concerns over the platform’s debt obligations and the token’s overall viability.
Source: cryptonewsland.com
