Interoperability between blockchains is quickly becoming one of the buzzwords when it comes to decentralized finance. and the currencies most likely to rise during an altcoin bull run.
DeFi’s rapid growth, steadily growing total value and rising ETH gas prices underscore the need for a layer 2 option for the sector This also supports the ability to transfer values across different networks.
The open protocol of REN was specially developed to meet this need by providing interoperability and liquidity between major blockchains, including those of Bitcoin, Ethereum and Zcash.
In the past three weeks The REN price is up more than 200%, rising from $ 0.251 on December 27th to a new all-time high of $ 0.778 on January 20th powered by a record $ 369 million per day.
Three reasons for the recent increase in the REN price are: the announcement of a collaboration with Google, the continuous increase in the total value locked on the platform and the possibility of generating passive income in several cryptocurrencies by operating a dark node.
Google Software Pivot increases confidence and addresses RENvm scaling issues
On January 19th, the REN team tweeted::
Ren researched and built on @Asylodev, an open and flexible @ Google framework. @GCPCloud Confidental Computing eases the financial constraints of RenVM and enables an unlimited scale solution. #RenVM “.
Not long after the tweet, REN’s price soared to a new all-time high. As mentioned in the tweet, Asylo is an open and flexible framework from Google that can be used to create portable applications that run on the hardware of Secure Enclave (secure enclave hardware).
With secure enclave hardware, users can run general purpose applications in a secure environment where neither the data nor the application itself can be compromised by anyone. including users. This provides a safer experience for everyone involved and protects against malicious code and backdoor attacks.
Asylo also makes it possible to port an application from one hardware type to the next. This means that developers can support multiple implementations with relative ease, including Intel implementations, AMD implementations, and other future implementations. The variety of options that this enables is an important feature to ensure decentralization in the network.
The entire locked value is raised to a new high
Community engagement and value are key factors for the long-term success of a blockchain project.
Since the start of the mainnet Ren virtual machine (RenVM) in May 2020, Participation in the platform has increased steadily. As Bitcoin holders, they now had another option to get their BTC to Ethereum and the growing DeFi space.
As seen in the table below, The total value locked on the Ren platform hit a new all-time high of $ 653.6 million on January 20th, and a total of 14,670 BTC are locked on the platform to create renBTC.
The list of assets supported by RenVM continues to grow with BTC, Bitcoin Cash (BCH), Zcash (ZEC), Filecoin (FIL), Terra (LUNA), Dogecoin (DOGE) and Digibyte (DGB). Currently available for transactions with the Ethereum and Binance blockchains.
It is currently being developed to enable interaction in the Polkadot (DOT), Solana (SOL) and Cosmos (ATOM) networks. This would further improve interoperability.
Darknodes: passive income and a decreasing supply
The third driving force behind the recent REN price hike It relates to the use case of the Ren token and how it can help users generate passive income. RenVM is a network of virtual machines that make up a virtual machine, also known as Darknodes.
Holders of REN tokens who want to operate a dark node have to block 100,000 REN so that they can process transactions in the network and earn a commission in the form of a traded token. Therefore, a Darknode operator has the opportunity to earn passive income in the form of several different cryptocurrencies from one location.
As can be seen in the graphic aboveCurrently, 17.13% of REN’s total offering is tied to the platform and it supports the operation of dark nodes.
During the last completed cycle The entire network earned $ 839,128 in commissions in the form of BTC, ZEC, FIL, and BCH. The total number of network commissions earned since the RenVM was launched is USD 2,975 million.
The continued addition of new tokens and interoperability with new blockchains will likely result in increased network usage and an increase in the number of fees earned. At the current price of $ 0.6157, a Darknode costs $ 61,570 to run.
With increasing activity in the network, the number of commissions generated also increases, which makes it even more lucrative for token holders to operate a dark node.. This can lead to a further appreciation of the REN price, since each new Darknode leads to a direct decrease in its circulation offer.
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