3 reasons why the REN price has risen 340% since the July low

Interoperability has become one of the factors driving the cryptocurrency market, and as the blockchain ecosystem grows into an interconnected network of Layer 1 protocols, the importance of communication and efficiency between decentralized applications (dApps) will also increase.

Ren (REN), a blockchain protocol designed to provide interoperability and liquidity between different blockchain platforms, began to gain interest last month as it is active in this space.

Data from TradingView shows that after reaching 0.41 on August 9, the REN price rose 185% to a daily high of $ 1.16 on September 15, when the 24-hour trading volume rose 443% $ 673 million soared.

1-day frame REN price table | Source: TradingView

The three reasons for the REN price boom are a steady increase in network activity and Total Value Locked (TVL) on RenVM, the introduction of a cross-chain bridge with arbitrum and the development of Run RenVM Greycore in the network’s test network.

REN’s trading volume and TVL have risen sharply

The upward momentum of REN can be found in the data on total trading volume on the network and TVL.

Total trading volume on the network and TVL on Ren | Source: Ren Project

In 2021, new chains were added to the list of supported bridges, which currently include Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche and Arbitrum.

Each new bridge has helped increase the volume of transactions and TVL on the Ren network, which is in line with movements at REN.

The REN price went up immediately after a bridge was made to Arbitrum

The massive REN price spike on September 15 was mainly due to the release of a bridge to Arbitrum, a Layer 2 scaling solution for Ethereum designed to host popular dApps at higher speeds and lower fees.

The Ethereum network has been plagued by high transaction fees and delayed transaction times, which has hampered the ability of many users to use DeFi or NFT related protocols on the network.

Arbitrum’s low-cost environment has proven to be an attractive DeFi environment for Bitcoin holders who can now switch to a Layer 2 solution and interact with renBTC on the network.

The TVL on Arbitrum via the Ren Protocol as of September 15 was $ 7.75 million as indicated by the green line on the value curve above.

REN is becoming more and more decentralized

The third reason the REN price increased was the release of RenVM Greycore on the network’s test network on Aug.

Greycore is a series of semi-decentralized validation nodes operated by renowned DeFi projects and adds an extra layer of protection to the protocol.

The first to join Greycore was BadgerDAO, a DeFi project that focuses on building projects that bring Bitcoin to DeFi.

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According to Cointelegraph

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