Interoperability has turn out to be one of many driving themes throughout the crypto market and because the blockchain ecosystem evolves into an interconnected net of layer-one protocols, the significance of communication and effectivity amongst decentralized purposes (dApps) may even improve.
Ren (REN), a blockchain protocol designed to supply interoperability and liquidity between totally different blockchain platforms, has began gaining traction over the previous month and a half as exercise within the decentralized finance (DeFi) sector has been on the rise.
Data from Cointelegraph Markets Pro and TradingView reveals that after reaching a low of $00.41 on Aug. 9, the price of REN has climbed 185% to a each day excessive at $1.16 on Sept. 15 as its 24-hour buying and selling quantity spiked 443% to $673 million.
Three reasons for the price development seen in REN embody the steadily rising exercise and complete worth locked on RenVM, the launch of a bridge to Arbitrum and the discharge of RenVM Greycore on the community’s testnet.
Rising quantity and complete worth locked
REN’s bullish momentum could be discovered within the information for the entire community quantity and complete worth locked (TVL).
As 2021 progressed, new chains have been added to the record of bridges supported, which now contains Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche and Arbitrum.
Each new bridge has helped to extend the amount and TVL on the Ren community, which has coincided with strikes seen in REN p.
REN price follows the Bridge to Arbitrum
The spike in price seen on Sept. 15 was due, largely, to the discharge of the Arbitrum bridge, an Ethereum (ETH) layer-two scaling resolution Arbitrum, which is designed to host in style decentralized purposes in a quick, low-fee atmosphere.
The Ethereum community has been tormented by excessive charges and delayed transaction occasions, which have hampered the flexibility of many customers to make use of DeFi or nonfungible token (NFT) associated protocols on the community.
Arbitrum’s low-cost atmosphere has confirmed to be a sexy DeFi atmosphere for BTC holders who at the moment are in a position to migrate to the layer-two resolution and work together on the community with renBTC.
The complete worth locked on Arbitrum by way of the Ren protocol was $7.75 million as of Sept. 15 and is represented by the inexperienced line within the worth locked chart above.
Related: Solana and Arbitrum knocked offline, whereas Ethereum evades assault
REN marches towards decentralization
A 3rd purpose behind the rise in exercise for REN was the discharge of RenVM Greycore on the community’s testnet on Sept. 13, a transfer that was achieved because the mission works towards its objective of full decentralization.
Greycore is a semi-decentralized validator set of nodes which might be operated by respected DeFi tasks and it helps so as to add a further layer of safety for the protocol.
The first mission to affix Greycore was BadgerDAO, a DeFi mission targeted on constructing tasks that convey BTC to DeFi.
According to information from Cointelegraph Markets Pro, market circumstances for REN have been favorable for a while.
The VORTECS™ Score, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, current price actions and Twitter exercise.
As seen on the chart above, the VORTECS™ Score for REN turned inexperienced on Sept. 13 and climbed to a excessive of 71 on Sept. 14 simply because the price of REN started to extend 72% over the following two days.
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