Connect with us
Active Currencies 14355
Market Cap $2,749,024,587,679.70
Bitcoin Share 50.89%
24h Market Cap Change $8.26

Is Ethereum behind Render’s 18% rally?

3min Read

Increasing hype around DePIN-based projects makes RNDR one to watch.

Is Ethereum behind Render’s 18% rally?

Share this article

  • The token’s value increased, and so did ETH.
  • RNDR’s popularity grew among traders, suggesting a significant price hike in the long term.

Render [RNDR], the native token of the distributed GPU network built on Ethereum [ETH] jumped by an incredible 18.85% in the last 24 hours.

This performance made RNDR one of the top assets with the best recovery rate after the broader market experienced a drawdown. Interestingly, the bounce happened as ETH itself was able to reclaim $3,000 and rise above it.

However, there were other reasons the price of RNDR increased. The first thing AMBCrypto noticed was the increase in social dominance.

Did ETH “Render” help?

Analyzing data from LunarCrush, we observed that Render’s social dominance increased by a mind-blowing 116% within the same timeframe the value skyrocketed.

Render's social dominance

Source: LunarCrush

The increase in social dominance implied that the project’s popularity among traders surged. From our findings, traders were attracted to RNDR because of its fundamentals.

Anyone conversant with the market would have observed that many market participants are bullish on projects with the DePIN narrative. DePIN stands for Decentralized Physical Infrastructure Networks.

In the crypto space, projects built around this narrative like Render, use tokens to incentivize holders who utilize the protocol.

Furthermore, AMBCrypto observed another proof of the interest in RNDR. This time, it was the trading volume. According to Santiment, Render’s trading volume rose to 556.65 million on the 14th of April.

This increase represented a 37.72% jump from the value on the 13th. However, the volume decreased slightly at press time, indicating that RNDR might not have a solid backing to continue its upswing.

Render's rising volume and price action

Source: Santiment

Sentiment stays the same

Despite RNDR’s potential, it seemed traders were not yet convinced about its short-term performance. This was evident from the Weighted Sentiment analyzed on-chain.

The metric tracks the average positive or negative comment about a project. If the reading is positive, it means most market participants have a bullish view. On the other hand, a negative reading suggests a bearish perception.

At press time, Render’s Weighted Sentiment was -0.45. With this position, demand for RNDR might decrease in the short term. Should this be the case, the price of the token might fall below $9.

But that does invalidate the long-term optimism around the project. AMBCrypto concluded this after checking the amount of holders.

On the 25th of March, the total amount of RNDR holders was less than 80,000. However, that figure had increased to 85,600 at press time.

Data showing the increasing number of RNDR holders and bearish sentiment

Source: Santiment


Realistic or not, here’s RNDR’s market cap in ETH terms


An increase in the number of holders was a sign of traction on the network and adoption of the token. If this continues, RNDR’s price could head to new highs.

However, it is important to note that there might be corrections in the process. But as long as the DePIN narrative remains relevant in the market, the token might be destined for a higher value.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.