Interoperability has become one of the driving themes in the crypto market. As the blockchain ecosystem evolves into an interconnected first-layer protocol network, the importance of communication and efficiency between decentralized applications (dApps) Will also increase.
Ren (REN), a blockchain protocol that aims to provide interoperability and liquidity between different blockchain platforms, has begun to gain attention in the past month and a half. Decentralized financial activities (DeFi) The department has been on the rise.
Data from Cointelegraph Markets Pro with Transaction view It shows that after hitting a low of US$00.41 on August 9, the price of REN rose by 185% to a daily high of US$1.16 on September 15, and its 24-hour trading volume soared 443% to US$673 million.
The three reasons for the price increase of REN include steadily increasing activity and locking in the total value of RenVM, launching the bridge to Arbitrum, and launching RenVM Greycore on the network testnet.
Rising volume and total value are locked
REN’s bullish momentum can Established In the data are the total network volume and the total locked value (TVL).
As 2021 progresses, new chains are added to the list of supported bridges, which now include Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche, and Arbitrum.
Each new bridge helps increase the volume and TVL of the Ren network, which coincides with the actions seen in REN p.
REN price follows the bridge of arbitration
The price spike on September 15 was largely due to the release of the Arbitrum Bridge, an Ethereum (Ethereum) The second layer of scaling solution Arbitrum, Designed to host popular decentralized applications in a fast, low-cost environment.
The Ethereum network has been plagued by high fees and delayed transaction times, which hinders the ability of many users to use DeFi or non-fungible token (NFT) related protocols on the network.
Arbitrum’s low-cost environment has proven to be an attractive DeFi environment for BTC holders, who are now able to migrate to the second-layer solution and interact with renBTC on the network.
As of September 15, the total value locked on Arbitrum through the Ren agreement was $7.75 million, which is indicated by the green line in the value lock chart above.
REN moves towards decentralization
The third reason for the increase in REN activities is the release of RenVM Greycore on the network’s testnet on September 13, which was completed in the process of the project’s efforts towards the goal of complete decentralization.
Greycore is a semi-decentralized validator node set operated by a reputable DeFi project, which helps to add an extra layer of protection to the protocol.
The first project to join Greycore is BadgerDAO, a DeFi project that focuses on building projects that bring BTC to DeFi.
According to the data from Cointelegraph Markets ProFor some time, REN’s market conditions have been favorable.
Cointelegraph’s unique VORTECS™ score is an algorithmic comparison of historical and current market conditions. These data points include a combination of market sentiment, trading volume, recent price changes and Twitter activity.
As shown in the figure above, REN’s VORTECS™ score turned green on September 13 and climbed to a high of 71 on September 14, when the price of REN began to rise 72% in the next two days.
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