The cryptocurrency sector has emerged as a sizzling subject on the worldwide stage in 2021 thanks largely to the expansion of decentralized finance and non-fungible tokens which have caught most of the people’s consideration.
All through the sector there’s a want for interoperability between networks as lots of the hottest tasks are on siloed blockchain networks and excessive Ethereum charges stop builders and traders from interacting throughout chains.
One challenge centered on fixing this challenge is Ren, which revealed on March 31 that Solana and Fantom had turn into the most recent tokens supported by the interoperability-focused protocol.
March Improvement Replace
— Ren (@renprotocol) March 31, 2021
These additions mark the third new token supported by the protocol over the previous week, which has coincided with a 40% rally within the price of REN as group members from the newly supported tokens uncover a newfound curiosity within the Ren ecosystem.
REN/USDT 4-hour chart. Supply: TradingView
As extra NFT and DeFi tasks proceed to emerge on separate blockchain networks, the necessity for tasks like Ren is probably going to enhance because the cryptocurrency ecosystem as a complete seems for methods to enhance its interconnectedness.
REN price soars as its ecosystem expands
2021 bought off to a sizzling begin for Ren thanks to the explosion in development of decentralized finance and the protocol’s capability to carry tokens from different blockchains onto the Ethereum (ETH) community the place a majority of the lively decentralized functions exist.
Momentum for Ren actually began to construct on Jan. 26 after it was introduced that Dogecoin (DOGE) could possibly be transacted on the Ethereum community by the renDOGE bridge.
The announcement of a partnership with Alameda analysis on Feb. 2 adopted by the protocol’s integration with the Binance Sensible Chain on Feb. 18 helped push Ren to an all-time excessive of $1.84 on Feb. 19 earlier than the general market correction that started on Feb. 20 dropped the price again beneath $1.
Following the downturn, Ren has continued to broaden its ecosystem by integrations with DeFi protocols like 1inch (1INCH), PancakeSwap (CAKE) and BadgerDAO (BADGER), in addition to by the addition of latest cross-chain property together with Digibyte (DGB), Terra (LUNA), Solana (SOL) and Fantom (FTM).
A collaboration that was fashioned with Polkadot (DOT) again in June 2020 has additionally been paying off for Ren of late as DeFi tasks just like the Acala community put together to launch on the Polkadot community as soon as the upcoming parachain auctions are full.
In accordance to the latest ecosystem replace, the RenVM surpassed $3 billion in whole quantity on the finish of February and has paid out over $5,500,000 to node holders since its inception. The group has additionally launched an replace for Ren Bridge 2, which is now absolutely open-source and could be accessed on GitHub.
Indicators of rising fundamentals
Alongside the latest integration with a number of DeFi platforms and the addition of Solana, Fantom and Luna to the Ren ecosystem, the VORTECS™ Rating, an algorithm comprised of present and historic market sentiment, buying and selling quantity, latest price motion and Twitter exercise, has risen as excessive as 78 over the previous week as fundamentals for the challenge enhance.
VORTECS™ Rating (inexperienced) vs. REN price. Supply: Cointelegraph Markets Professional
As seen within the chart above, the VORTECS™ Rating flipped inexperienced on March 26 and has remained on this zone for a majority of the time since then. Earlier backtesting of the Markets Professional system has proven that larger VORTECS™ scores trace that the present market circumstances are comparable to circumstances prior to now when the asset rallied over the subsequent a number of days.
With the momentum of nonfungible tokens beginning to wane, merchants may quickly be wanting to rotate into the subsequent sizzling sector and there are indicators that exercise on DeFi platforms is once more on the uptick.
As blockchain expertise will increase its presence within the mainstream monetary markets, Ren is one altcoin traders are clearly watching due to the truth that interoperability will stay a serious focus in serving to to unify what’s at the moment a disjointed cryptocurrency ecosystem.
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