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REN Price Prediction

Author Author Maria Kozlovskaia
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11 minutes
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500
Updated
16.01.2023

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While the cryptocurrency space today has narrowed significantly in terms of annual turnover - which has been impacted by many negative factors - cryptocurrencies as a whole have not lost their appeal to crypto investors and traders. There are many enthusiasts who continue to believe that the future is in digital assets. And because of this, the decline in the value of large digital coins can be a great investment opportunity. While Bitcoin and Ethereum - as it may seem today - have already hit their ceiling and bounced back temporarily, there are plenty of young crypto projects with coins that have good potential for further growth.

Those involved in trading have probably encountered the various challenges of off-exchange trading many times. In 2018, Ren came onto the scene, a crypto project aimed at enabling blockchains of different cryptos to interact by allowing users to conduct secure and permissionless transactions. In simple terms, Ren is a decentralized finance (DeFi) platform that aims to create its own ecosystem providing privacy and functional liquidity between different blockchains. We are here to tell you about the history of the project, what features and benefits it has, and to give you Ren price prediction for the near future so that you can make informed investment decisions (an analysis based prediction of what average price will reach).

How the Ren Project Came to the Crypto Scene

The incredible success of Bitcoin and its closest competitors such as Ethereum or Tether has prompted experts and enthusiasts to create numerous crypto projects. Although Bitcoin saw the light of day just over 10 years ago, many digital coins have emerged since then, with many of them proving to be just a means to raise money and outright fraudulent projects. Today investors are much more careful when it comes to choosing a project to put their money into. That's why we want to talk about Ren in more detail and also look at where it all started.

The founders of Ren are Taiyang Zhang and Loong Wang, two Australian students who started working at the same start-up after graduation. They then started their own software company. After founding his own crypto hedge fund (later called Virgil Capital), Zhang asked Wang to write a trading algorithm for him. During the course of working on their own hedge fund, the young experts noticed several important problems. First was the lack of support for over-the-counter trading. The second was the lack of ability to buy a large number of digital assets. The latter problem stemmed from a basic property of blockchain - the transparency and public availability of transactions. By tracking large transactions with specific software solutions, speculative traders could influence the price, thereby benefiting from the volatility of crypto assets. Popular primarily with major crypto investors, over-the-counter trading of strong cryptos like Bitcoin was virtually impossible without the involvement of centralized third parties. In addition, Zhang and Wang concluded that the lack of interoperability between blockchains was also a very serious problem for the cryptocurrency space.

So, in 2017, what experts have called the Republic Protocol was born. It is a new crypto protocol capable of decentralizing over-the-counter (OTC) trading as well as enabling blockchain interoperability between different crypto projects. The new crypto project had its own currency called Ren. As an ERC-20 digital asset (Ethereum network standard), Ren first became available for purchase in January 2018, when the first phase of the initial coin offering (ICO) was held. At the start of the sale, anyone could purchase a Ren coin at a price of around $0.05. At the time of writing, the Ren coin price is around $0.0634 with a daily trading volume of just over $10 million. In our Ren crypto price prediction (analysis based prediction of what average price it will reach), we considered both the intrinsic value of the digital asset and how its price has changed historically.

Features of the Ren Project

Ren is a decentralized dark pool protocol that enables large volumes of OTC trading without the involvement of centralized parties. Originally named Republic, it was renamed Ren in 2019. While the technology behind this crypto project is quite difficult to understand, we have tried to explain all the most important points in the simple language below. The main advantage of Ren is that it provides access to OTC transactions while ensuring anonymity. The core issue with OTC trading (conducting large crypto transactions bypassing cryptocurrency exchanges) is that traders can influence the market price, and the Ren protocol eliminates this disadvantage. Typically, OTC transactions are made by large crypto investors and traders who are disinterested in unpredictable price movements. However, before we talk about the main features of Ren (which undoubtedly affect Ren price prediction), it is worthwhile to find out what the dark pools are.

Understanding Dark Pools

In simple terms, dark pools are order books that allow over-the-counter trades to be made anonymously because they are hidden from the market. Dark pools were introduced to ensure the confidentiality of large market players conducting large volumes of OTC trading. With minimum liquidity levels set, dark pools establish restricted access. The first dark pool was introduced by Kraken in 2015. It was created to help large crypto traders get ahead of the market. As for Ren, this project also has its own dark pool (hidden order book) so that large transactions are not reflected in the public books and do not affect the value of crypto assets. Being secure and autonomous, the dark pool eliminates the need for a KYC approach. However, the problem with Ren was that this platform was built on Ethereum, which still had access to private order books.

Ren Platform

So, the basic idea behind Ren is to allow major crypto investors to trade over the counter without worrying about potential price spikes and identity exposures. Ren is a protocol based on a network of dark pools. At the heart of the protocol is the Shamir-Secret-Sharing mechanism that divides each order into non-grouped bits of information that are distributed to the network nodes. Ren also benefits from the use of smart contracts, once introduced by the creators of Ethereum. Thus, the platform has a judge and a registrar, two decentralized applications that verify the transaction and prevent the reconstruction of bits of order information, respectively.

In 2020, the creators of Ren also unveiled the RenVM virtual machine with its own OTC order book and blockchain. Using its own dark pools, RenVM provides support for ERC-20-compliant coin exchange transactions. Notably, RenVM wraps tokens from other projects into a shell with their intermediate conversion into ERC-20 tokens. For example, to work with Bitcoin, a BTC coin is converted into RenBTC. Equipped with the GatewayJS and RenJS features, RenVM has robust protection from attackers.

What is a Ren Coin

Ren is an ERC-20 digital asset operating in the Ren ecosystem. According to its creators, it has two main functions. First, the it is used to pay trade commissions for the execution of any orders made on RenVM. Secondly, it is used to pay a bond to a smart contract called Registrar. In simple words, the Registrar is a decentralized application that ensures the stable operation of the Ren protocol as well as decentralization. So, for example, anyone wishing to run their own dark node on the RenVM platform has to transfer 100,000 REN to Registrar. So, this digital asset does have intrinsic value, which provides a more optimistic Ren price prediction (analysis based prediction of what average price it will reach).

Strengths and Weaknesses of the Ren Protocol

So, presented to fix several worrying problems of crypto exchanges, Ren proved to be a very promising project, and hence Ren price prediction (analysis based prediction of what average price it will reach) was very optimistic at the start of the project. However, this project was based on the Ethereum network, which leads to some problems that it has to solve. So, before we delve into Ren price prediction, let's look at a few advantages of the protocol:

  • Investors have access to the liquidity pools of various crypto exchanges.
  • Investor privacy through the use of closed order books.
  • High transaction security through the use of an advanced mechanism.
  • Lower impact on the liquidity market due to the anonymity of major crypto investors and traders carrying out OTC transactions.
  • Fast and smooth execution of financial transactions on the platform.

Unfortunately, the Ren project has also encountered some problems (which have affected Ren price prediction) that have hampered its development. First, the Ren platform lacks support for fiat money (national currencies). In addition, because Ren is capable of linking different blockchains, there is a high probability of compounding risk.

What Makes Ren Stand Out from the Crowd

Ren was conceived as a platform that removes barriers to entry and investment for DeFi projects. The platform made it possible to exchange tokens from different blockchains without intermediaries and in-between steps. RenVM is a network of virtual nodes called Darknodes. The fee charged for transactions conducted within the network is used to pay for the work of the miners. The team behind Ren aims to unite the entire crypto community by providing support for the blockchains and tokens of most major crypto projects. The main purpose of the Ren was originally to pay fees for transactions made within the protocol. To launch a single Darknode, a fee of 100,000 tokens is required as a way to counteract malicious activity. By launching their Darknodes, users are able to receive a commission on transactions in other cryptocurrencies such as Bitcoin. And this feature attracts users to the Ren platform, ensuring its continued growth. Thus, as the platform scales, the value of the token should increase (according to prediction from experts). And that makes Ren price prediction more optimistic. However, does it really work? To see how the project has evolved and to make a correct Ren price prediction, you need to look at how the price of the digital asset has changed historically.

Ren Crypto Price Prediction

Launched to power Ren Protocol, the Ren became available to crypto investors in January 2018. The coin's initial price was around $0.05. Thanks to a favourable Ren price prediction, the digital asset was in quite high demand from investors and crypto enthusiasts, allowing it to rise to $0.08 in price. However, a slow decline followed, and 3 months after the start of the project, Ren's price was at $0.03 per coin. Subject to market volatility, Ren did not rise above $0.13 in 2018.

In 2019, there was a cryptocurrency boom and cryptocurrency market pioneer Bitcoin rose significantly in value. The cryptocurrency trend has also had a positive impact on altcoins, including the Ren. The coin's price reached its all-time high of $0.15 and continued to rise (and the prediction was optimistic). However, Ren price prediction was not too optimistic as many alternative options for investing in Bitcoin, the digital gold which has always enjoyed the highest level of trust from users, appeared. After another price ceiling of $0.30 was reached, the Ren token fell again and traded at $0.22 to $0.24 per coin in 2019. However, in the following years, a downtrend in price emerged, and at the time of writing, Ren was worth just $0.063, just 1 cent above its starting price.

Factors That Keep Ren from Becoming the New Great Currency

The price of cryptocurrencies is vulnerable to market sentiment and movements, and Ren is no exception to this rule. Despite high levels of volatility, Ren has shown good momentum over the months. According to the optimistic Ren price prediction, the coin still has a chance to overcome the psychological barrier of $1. However, there is a pessimistic Ren price prediction, which is based on the fact that the real value of the coin is much lower than the one that the creators of the project are trying to impose using various marketing tricks. In simple words, this virtual coin needs more than just interoperability to succeed. So, when making a Ren price prediction, there are several important factors to consider, as listed below:

  • Reducing supply can have a positive impact on the value of Ren, as the rarer the asset, the higher its price.
  • Possible security concerns. Although Ren positions itself as a robust protocol for enabling anonymous OTC trading, it may have some security issues that could lead to a reduction in the price of the coin.
  • Popularization of decentralized applications (dApps). If the demand for decentralized finance continues to grow, this will have a positive impact on the Ren price.
  • Price dynamics over the last 50, 100 and 200 days (and how it correlates with the prediction). Traders prefer to use a simple tool like the 50/100/200-day moving average to determine crypto's resistance and support levels. Should the price rise relative to these averages, it could make Ren an attractive option for traders and investors in an instant.

Unfortunately, the very optimistic Ren price prediction for 2022, according to which the coin could trade at around $0.60, did not justify itself. The Russian military invasion of Ukraine and a host of other world events that have negatively impacted the global economy have caused the cryptocurrency market to collapse. Reaching a record high of around $70,000 per coin, Bitcoin was only worth around $17,000 at the time of writing. Of course, all these things are bound to have an impact on the price of Ren. And while the cryptocurrency world is going through its bad times today, Ren continues to show signs of a crypto project staying afloat.

F.A.Q.

1. What is Ren?

Created by Australian crypto experts, Ren is a decentralized dark pool protocol that allows anonymous over-the-counter crypto transactions to be conducted anonymously and confidentially.

2. What is the goal of the creators of the protocol?

The main goal of the platform is to provide blockchain interoperability between different platforms, allowing users to lock crypto from different projects into the Ren software platform by minting equivalent tokens based on the ERC-20 standard and using them as products of a decentralized financial network.

3. Where can I buy Ren tokens?

This token is listed on many cryptocurrency exchanges, including Binance. You can buy Ren tokens by exchanging your Bitcoins or other digital assets for them. Alternatively, you can buy Ren tokens with fiat money.

4. What is a Ren token?

It is an ERC-20 token based on the Ethereum platform. It went on sale in January 2018, when the creators of the project held an ICO.

5. What intrinsic value does Ren have?

First, the token is used as a means of paying for computational fees within the protocol. Second, Ren is used to registering and running Darknodes. As the Darknodes network scales, the price of Ren should theoretically increase.

6. Is Ren a good investment?

Until early 2022, we had an optimistic Ren price prediction (an analysis based prediction of what average price will reach) looking at how this project is developing. However, 2022 has brought many unpleasant surprises that have negatively impacted both the global economy as a whole and the digital asset market. Now, with digital gold itself going through its worst times, it is hard to predict the price of altcoins, especially low-value ones like Ren. At around 6 cents a coin, Ren can be both a great investment and a waste of your hard-earned money. Before deciding to invest in this crypto project, do your own research on the blockchain interoperability-related cryptocurrency market.


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