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3 reasons why REN price is up 340% from its July swing low

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Interoperability has change into one of many driving themes throughout the crypto market and because the blockchain ecosystem evolves into an interconnected internet of layer-one protocols, the significance of communication and effectivity amongst decentralized functions (dApps) may even enhance.

Ren (REN), a blockchain protocol designed to supply interoperability and liquidity between completely different blockchain platforms, has began gaining traction over the previous month and a half as activity in the decentralized finance (DeFi) sector has been on the rise.

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Knowledge from Cointelegraph Markets Pro and TradingView reveals that after reaching a low of $00.41 on Aug. 9, the worth of REN has climbed 185% to a every day excessive at $1.16 on Sept. 15 as its 24-hour buying and selling quantity spiked 443% to $673 million.

REN/USDT 1-day chart. Supply: TradingView

Three causes for the worth development seen in REN embrace the steadily rising exercise and whole worth locked on RenVM, the launch of a bridge to Arbitrum and the discharge of RenVM Greycore on the community’s testnet.

Rising quantity and whole worth locked

REN’s bullish momentum may be found within the information for the entire community quantity and whole worth locked (TVL).

Complete community quantity and whole worth locked on Ren. Supply: Ren Undertaking

As 2021 progressed, new chains had been added to the listing of bridges supported, which now consists of Ethereum, Binance Good Chain, Solana, Polygon, Fantom, Avalanche and Arbitrum.

Every new bridge has helped to extend the amount and TVL on the Ren community, which has coincided with strikes seen in REN p.

REN value follows the Bridge to Arbitrum

The spike in value seen on Sept. 15 was due, largely, to the discharge of the Arbitrum bridge, an Ethereum (ETH) layer-two scaling solution Arbitrum, which is designed to host common decentralized functions in a quick, low-fee atmosphere.

The Ethereum community has been affected by excessive charges and delayed transaction instances, which have hampered the power of many customers to make use of DeFi or nonfungible token (NFT) associated protocols on the community.

Arbitrum’s low-cost atmosphere has confirmed to be a sexy DeFi atmosphere for BTC holders who are actually capable of migrate to the layer-two resolution and work together on the community with renBTC.

The overall worth locked on Arbitrum through the Ren protocol was $7.75 million as of Sept. 15 and is represented by the inexperienced line within the worth locked chart above.

Associated: Solana and Arbitrum knocked offline, while Ethereum evades attack

REN marches towards decentralization

A 3rd purpose behind the rise in exercise for REN was the discharge of RenVM Greycore on the community’s testnet on Sept. 13, a transfer that was finished because the venture works towards its aim of full decentralization.

Greycore is a semi-decentralized validator set of nodes which might be operated by respected DeFi initiatives and it helps so as to add an extra layer of safety for the protocol.

The primary venture to affix Greycore was BadgerDAO, a DeFi venture targeted on constructing initiatives that deliver BTC to DeFi.

In line with information from Cointelegraph Markets Pro, market situations for REN have been favorable for a while.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, current value actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. REN value. Supply: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ Rating for REN turned inexperienced on Sept. 13 and climbed to a excessive of 71 on Sept. 14 simply as the worth of REN started to extend 72% over the subsequent two days.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your individual analysis when making a choice.