Researching Render Network (RNDR) : Blockchain Expansion and New Token Issuance

The DePin or Decentralized Physical Infrastructure narrative has been one that has managed to drive several coins and tokens to appreciate significantly.

In this category, the majority of projects prioritize the principle of sharing computing capabilities in terms of CPU, GPU, and Memory, to facilitate the "rental" of computers indirectly, through the internet or cloud computing.

One project that stands out in this narrative is Render Network, a project from 2017 that continues to actively develop its product today.

What is Render Network?

Render Network is an application platform that facilitates the rental of GPUs or Graphics Processing Units from individuals who do not use them intensively to other individuals who need them.

The use and rental of GPUs in this context is for rendering videos and images that require higher power than the average computer, such as 3D images, complex Motion Effect videos, and other animated videos.

The main focus is on artists and content creators, where Render Network provides an application for artists and content creators who cannot render high quality images or videos, so that they can use the application to connect to other computers with high GPUs that other individuals rent out for rendering.

Currently, the Render Network application is still tied to a Web2 platform called Otoy, so to become a user, a fee of 19.99 Euros or around 22 Dollars must be paid per year to use the application and connect the Web3 wallet.

The application also uses a native token from the Render Network ecosystem, RNDR, which is used for payment of GPU rental services for artists and content creators who want to render videos or images.

The application is open to the public, from users to GPU providers, so individuals around the world can also register their unused computers or GPUs for rent in this application.

The idea has been in development since 2009 and was officially launched through a whitepaper and official website launch in 2017. A full explanation of Render Network can be accessed on the official website.

Development of Render Network in 2023

Please note that the Render Network system works by renting GPUs per project where each project is considered a job. The number of projects created on the Render Network has reached a significant number, where there is only an average per quarter in 2023, about more than 40,000 projects per quarter.

The number of GPU renters on the Render Network platform has also increased significantly, with more than 1,000 GPU nodes or providers available to users in the second quarter of 2023.

The amount of funds generated from the Render Network platform is also seen to increase significantly in 2023, where to date there is around 1 Million RNDR that has rotated on the Render Network platform as transaction fees.

All of this data was obtained from an official Medium Article from the Render Network Team, which shows that in 2023, the platform is still increasing in terms of users and activity.

This increase has had a positive impact on Render Network's notoriety, which has sparked the potential for wider adoption.

The Render Network team looks to build on this potential by making several updates in 2023. There are two main updates being implemented in 2023 through several Render Network Proposals or RNPs.

Platform Updates

The first update made and one of the catalysts for the price appreciation that has occurred for the RNDR token is the blockchain expansion.

Following the vote on proposal RNP-006, which was originally conceived as RNP-002, Render Network has unveiled plans to expand to the Solana Blockchain.

This expansion is considered important because it is the first step to higher adoption because initially Render Network itself moved on the Ethereum Blockchain.

This migration or expansion is considered a step to lower transaction costs and speed up data movement because the Solana Blockchain is more efficient than the Ethereum Blockchain at this time.

This move came as a surprise to RNDR investors who seemed to be in favor of migrating to Solana, because there was actually another option, namely Layer 2 adoption from Ethereum to lower transaction fees and speed up data movement.

However, the Render Network team seems to prefer to migrate to Solana, which until now was still strong enough to stand alone without the need for Layer 2 assistance.

This migration process has started since November 2023, where currently RNDR investors can use tools to migrate RNDR Tokens from Ethereum to Solana through the tools provided by the Render Network Team here.

For now, the RNDR transaction fee for migration from Ethereum to Solana is still free because it is subsidized by the team until January 2024.

Plus there will be rewards for investors who migrate earlier than others, but it is still unknown whether there will be an unpredictable airdrop or not.

This uncertainty is due to the fact that in the publication article, the team informed that there will be rewards, but in a tweet on the official Twitter (X), it was said that Render Network will not conduct an unprecedented airdrop, so at the moment the information related to the airdrop is still uncertain.

With the migration to Solana, Render Network will have a new token called RENDER which is an SPL or Solana Program Library Token for all transaction tools in the Render Network ecosystem that moves on the Solana Blockchain.

According to the publication from the Render Network Team above, along with this migration there will be a burn and mint mechanism through the launch of RENDER where everything is formalized through the RNP-006 proposal coupled with the formalization of RNP-007.

In RNP-007, Render Network will involve more Artificial Intelligence in its platform so that more projects involve AI and expand its adoption.

Through the launch of RENDER to Solana, it is rumored that there will be 4,563,402 RENDERs that will enter the Solana ecosystem in the first year of launch.

The schedule and allocation are listed in the table above which can be accessed in the official publication from Render Network on Medium.

The main focus of the RENDER launch is likely to be through GPU or node renters as well as liquidity providers locking in RNDR on decentralized token or coin trading venues (DEXs) and on other Render Network-related platforms.

The launch of RENDER has been implemented along with the migration process in November 2023 through the token migration tool stated above.

There is a good chance that with this migration the Render Network ecosystem on Ethereum will be shut down, but for now both ecosystems on Solana and Ethereum are still moving.

So for now the main focus is the launch of RENDER along with the burn and mint mechanisms that will be implemented and the inauguration of the migration from the Ethereum Blockchain to the Solana Blockchain for all Render Network users.

Price Condition

In terms of price, it can be seen that since September 2023, RNDR is still seen moving up until now, indicating strong interest which is the result of active updates and transaction volume on the Render Network platform.

RNDR/USD Monthly Chart

On the monthly chart, it can currently be seen that the price is still moving up after recovering from its significant correction, forming a cup and handle pattern from a technical perspective which generally gives a projection of high price appreciation.

In addition, RNDR is currently still not in the overbought zone in terms of RSI on the monthly chart, signaling that there is still potential for price appreciation in the long term, especially reaching its highest price in the $8 area.

But on the weekly chart, it can be seen that RNDR is currently in the overbought zone, which is a sign of a potential correction in the medium term, especially if January 2024 the crypto market decides to move down due to unprecedictable negative sentiment.

Fundamentally, currently the transaction volume is still moving up as seen from the volume conditions in the spot market according to data from Messari.

It can be seen that the transaction volume is still in an appreciation movement since the initial launch into the market, indicating that as time goes by, the transaction volume of RNDR continues to increase, which is proof that interest continues to increase.

The volume of futures transactions related to RNDR-based contracts is also seen to have increased dramatically according to data from Coinglass, which is a sign that traders are becoming interested in this asset.

Generally, if volume is seen to rise based on data from Open Interest, it can be considered a positive sign for price appreciation in the spot market. However, keep in mind that if it is too high there is a possibility of a temporary correction due to the potential for excessive leverage from traders.

On the social front, according to Messari and the official Render Network publication, Twitter, Telegram, and Reddit have seen a significant increase in followers and are still moving upwards.

This indicates that interest in Render Network is still on the rise which could be a sign that many new investors are interested in the project.

Conclusion

Overall when looking at platform activity in terms of transaction volume, price, and users, currently the Render Network and RNDR itself have good potential in the long run.

This potential will also increase if the era of content creation continues to grow coupled with education regarding decentralized computing systems or sharing computing power so as to facilitate all aspects of creativity.

The thing to worry about is the strong increase in interest around RNDR, which has the potential to fade quickly if you reflect on the history of projects in the crypto market that suddenly rose but then also fell suddenly.

Another thing to keep an eye on is Render Network's migration and implementation of burn and mint mechanisms for the RENDER Token along with its move to the Solana Blockchain from Ethereum.

In the event of a technical glitch that harms users of its platform, there is a possibility that the phenomenon of interest will drop, making its potential appreciation dim.

Moreover, if there is a sudden allocation of new tokens to the detriment of general investors and excessive favor to the team, then there is a possibility of suspicion starting to arise, thus dimming confidence in the project and dimming the potential for long-term price appreciation.

But for now, these risks are still not visible, so in the future, RNDR and RENDER still have significant potential.

Risk and financial management is necessary if you want to buy RNDR or RENDER tokens for the long term, given that uncertainty is still very strong, especially in the migration process.

If you already own RNDR, it is better for investors to migrate to Solana to get RENDER tokens and collect points for potential rewards.