DeFi surge, rising TVL and new partnerships underpin Ren’s 100% rally

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Interoperability between blockchains is quickly turning into one of many buzz phrases being thrown round when discussing decentralized finance and the cash almost definitely to rally throughout an altcoin bull run. 

The speedy development of DeFi, its ever increasing complete worth locked and hovering ETH gasoline charges additional spotlight the sector’s want for a layer 2 possibility that additionally helps the flexibility to transact worth throughout totally different networks.

REN’s open protocol is designed particularly to fill this want by offering interoperability and liquidity between the highest blockchains together with Bitcoin, Ethereum and Zcash.

Over the previous three weeks the worth of REN has elevated by greater than 200%, going from $0.251 on Dec. 27 to a brand new all-time excessive of $0.778 on Jan. 20 pushed by a document $369 million in 24-hour quantity.

REN/USDT 4-hour chart. Supply: TradingView

Three causes for the current value surge within the value of REN embody the announcement of a collaboration with Google, the continued enhance in complete worth locked on the platform and the flexibility to earn passive revenue in a number of cryptocurrencies by means of the operation of a darknode.

Google software program pivot boosts sentiment, addresses RENvm scaling points

On Jan.19 the REN workforce tweeted:

Ren has been researching & constructing on @Asylodev, an open and versatile framework by @Google. @GCPCloud confidential computing relaxes RenVM’s financial constraints, permitting for an unbounded scaling resolution. #RenVM.”

Not lengthy after the tweet, REN value started to rally to a brand new all-time excessive. As talked about within the tweet, Asylo is an open and versatile framework from Google designed to assist construct transportable purposes that run on Safe Enclave {hardware}.

The safe enclave {hardware} permits customers to run general-purpose purposes in a safe surroundings the place each the information, and the appliance itself, can’t be compromised by anybody, together with the consumer. This makes for a safer expertise for all events concerned and helps defend in opposition to malicious code and backdoor assaults.

Asylo additionally makes it potential to port an software from one sort of {hardware} to the following, that means that builders can assist a number of implementations with relative ease, together with Intel implementations, AMD implementations, and any others that seem sooner or later. The range of selection this permits is a crucial function to make sure decentralization on the community.

Complete worth locked soars to a brand new excessive

Group engagement and added worth are key components in relation to the long-term success of a blockchain challenge.

Because the launch of the Ren digital machine mainnet (RenVM) in Might 2020, engagement on the platform has steadily elevated as Bitcoin holders now had one other technique to deliver their BTC to Ethereum and the rising DeFi house.

As seen within the chart under, the full worth locked on the Ren platform reached a brand new all-time excessive of $653.6 million on Jan. 20 and a complete of 14,670 BTC are locked on the platform to create renBTC.

Complete worth locked in RenVM. Supply: DeFi Pulse

The listing of belongings that RenVM helps continues to develop with BTC, Bitcoin Money (BCH), Zcash (ZEC), Filecoin (FIL), Terra (LUNA), Dogecoin (DOGE) and Digibyte (DGB) at the moment obtainable to transact on the Ethereum and Binance blockchains.

Improvement is at the moment underway to make it potential to work together on the Polkadot (DOT), Solana (SOL) and Cosmos (ATOM) networks as nicely, which might additional improve the interoperability supplied.

Darknodes, passive revenue and a reducing provide

The third driving power behind the current value appreciation of REN pertains to the Ren token use case and the way it will help customers earn passive revenue. RenVM is a community of digital computer systems that make up a digital machine, that are additionally known as Darknodes.

REN token holders who want to function a darknode have to lock up 100,000 REN which wiil allow them to course of transactions on the community and earn a charge within the type of the token transacted. Thus, a darknode operator has the chance to earn passive revenue within the type of a number of totally different cryptocurrencies from one location.

Ren Darknode Statistics. Supply: Renproject

As might be seen within the above graphic, 17.13% of REN’s complete provide is at the moment bonded on the platform and helps the operation of darknodes.

Throughout essentially the most lately accomplished cycle, the community as a complete earned $839,128 in charges within the type of BTC, ZEC, FIL and BCH. The full community charges collected for the reason that launch of the RenVM equals $2.975 million.

The continued addition of latest tokens and interoperability with new blockchains will doubtless see elevated utilization of the community and a rise within the quantity of charges earned. On the present value of $0.6157 it prices $61,570 to function a darknode.

RenVM complete customers over time. Supply: Dune Analytics

As exercise on the community will increase, the quantity of charges generated may also enhance, making it much more profitable for token holders to function a darknode. This has the potential to result in additional value appreciation from REN as each new darknode ends in a direct lower in its circulating provide.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a choice.