3 reasons why REN price is up 340% from its July swing low

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Interoperability has change into one of many driving themes inside 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 functions (dApps) will even enhance.

Ren (REN), a blockchain protocol designed to offer interoperability and liquidity between completely different blockchain platforms, has began gaining traction over the previous month and a half as activity in the decentralized finance (DeFi) sector has been on the rise.

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Information from Cointelegraph Markets Pro and TradingView reveals that after reaching a low of $00.41 on Aug. 9, the value of REN has climbed 185% to a every day excessive at $1.16 on Sept. 15 as its 24-hour buying and selling quantity spiked 443% to $673 million.

3 reasons why REN price is up 340% from its July swing low
REN/USDT 1-day chart. Supply: TradingView

Three causes for the value development seen in REN embody the steadily growing 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 found within the information for the whole community quantity and complete worth locked (TVL).

3 reasons why REN price is up 340% from its July swing low
Complete community quantity and complete worth locked on Ren. Supply: Ren Challenge

As 2021 progressed, new chains had been added to the listing of bridges supported, which now consists of Ethereum, Binance Sensible Chain, Solana, Polygon, Fantom, Avalanche and Arbitrum.

Every new bridge has helped to extend the quantity and TVL on the Ren community, which has coincided with strikes seen in REN p.

REN worth follows the Bridge to Arbitrum

The spike in worth seen on Sept. 15 was due, largely, to the discharge of the Arbitrum bridge, an Ethereum (ETH) layer-two scaling solution Arbitrum, which is designed to host common decentralized functions in a quick, low-fee setting.

The Ethereum community has been stricken by excessive charges and delayed transaction occasions, which have hampered the power of many customers to make use of DeFi or nonfungible token (NFT) associated protocols on the community.

Arbitrum’s low-cost setting has confirmed to be a pretty DeFi setting for BTC holders who are actually in a position to migrate to the layer-two answer and work together on the community with renBTC.

The overall worth locked on Arbitrum through the Ren protocol was $7.75 million as of Sept. 15 and is represented by the inexperienced line within the worth locked chart above.

Associated: Solana and Arbitrum knocked offline, while Ethereum evades attack

REN marches towards decentralization

A 3rd motive 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 completed because the challenge works towards its objective of full decentralization.

Greycore is a semi-decentralized validator set of nodes which are operated by respected DeFi tasks and it helps so as to add a further layer of safety for the protocol.

The primary challenge to hitch Greycore was BadgerDAO, a DeFi challenge centered on constructing tasks that deliver BTC to DeFi.

In accordance with information from Cointelegraph Markets Pro, market circumstances for REN have been favorable for a while.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, latest worth actions and Twitter exercise.

3 reasons why REN price is up 340% from its July swing low
VORTECS™ Rating (inexperienced) vs. REN worth. Supply: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ Rating for REN turned inexperienced on Sept. 13 and climbed to a excessive of 71 on Sept. 14 simply as the value of REN started to extend 72% over the subsequent two days.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you need to conduct your individual analysis when making a choice.