As per Coin Bureau, Ren Protocol is one of the “strongest foundations in the DeFi ecosystem.” However, it is yet to receive major traction in the market. The DeFi venture, established in 2017, could witness a sharp increase as it resolves a major problem among blockchains, which is cross-chain interoperability.
Trading of Bitcoin (BTC), Bitcoin Cash (BCH), Zcash on Ethereum and several more blockchain tokens can be traded with Ren. This was accomplished by one of the covenant’s features – the Ren Virtual Machine (RenVM), which permits the covenant to mint a particular quantity that users wish to trade, for instance Bitcoin Cash.
Therefore, users will be able to trade Bitcoin minted using the ERC-20 standard in the form of renBTC. To attain that, the covenant utilizes a plethora of “dark nodes” that function with the state-of-the-art privacy algo “Shamir’s Secret Sharing.” The algorithm paves way for users to function on the covenant without a need to distribute any personal info, as Coin Bureau’s analyst pointed out:
“Ren is one of the few cryptocurrency projects that’s been tackling interoperability head-on. The market cap of Ren’s wrapped Bitcoin token on Ethereum (renBTC) has grown to over $1 billion over the last few months. And the Ren protocol has expanded to support other chains…”
The covenant has strengthened crucial collaborations. This includes partnership with Acala Network that enables users to mint Bitcoin on Polkadot. Furthermore, the team backing Ren also announced an overhaul for supporting multi-chains, including Binance Smart Chain, Digibyte, Avalanche, Dogecoin, and Filecoin, among others. Additionally, the REN token was listed on Coinbase platform in recent times.
Another crucial partnership was inked between Ren and Alameda Research. This crypto firm is also the promoters of Solana blockchain and FTX exchange. Hence, Coin Bureau anticipates a likely integration of Ren with the aforesaid blockchain in the months ahead. Such factors have contributed to the increase in the price of REN to $10.50 in 2021, from $0.15 in July 2020. The analyst further clarified:
“It’s not just enthusiasm that has driven up the price of REN. Quite the contrary, the REN token has robust tokenomics. For example, REN has a maximum supply of 1 billion. This supply is evenly distributed across 45,000 wallets (…).”
With respect to REN’s future price prospects, the analyst opined that the crypto token could rally as per comparatively low Total Value Locked (TVL). Nevertheless, a major portion of demand originates from users of Ethereum’s blockchain, which is currently recording huge transaction processing (gas) fees due to network congestion. The analyst trusts that when “small investors” begin utilizing the covenant in an increasing manner, the value of crypto token will increase in a steep manner:
“As I mentioned earlier the distribution of REN is incredibly and much of its supply is in circulation. This means there won’t be any whales pouring their REN tokens into new investors when the price goes up as with other cryptocurrencies. REN also has a low market cap, this means it would not require much capital to push it higher.”
