The crypto industry is still deep in the bear market, and any hopes that the arrival of September will bring a notable change has — so far, at least — led to disappointment. Historically, the end of summer meant a significant change in the crypto market’s behavior, and this time, the bear market is seemingly not ending but rather continuing to push prices further down.
This is also true when it comes to Render Token (RNDR), which is quite an interesting project with great potential for the future of visual art in the digital world. Today, we decided to take a look at the project, what it is about, and also its performance, and forecasts for the future.
What is Render Token?
Render Token (RNDR) is a distributed GPU rendering network. The project is built on Ethereum’s blockchain, and its aim is to connect artists and studios who require large amounts of GPU computing power with its mining partners. The idea is that the project’s community would rent out their excess GPU capabilities and receive payments in exchange.
Meanwhile, artists and studios that require rendering power would be able to use it quickly, cheaply, and efficiently in order to render their artwork and other forms of content.
The project emerged as an idea all the way back in 2009, but it was only launched in 2017. It held its public token sale in October 2017 and a private sale that lasted from January 2018 to May 2018. In total, it sold 117.8 million RNDR at a price of $0.25 per token, raising a total of $29.4 million.
The project launched in beta around the time when the private sale took place, and it started building a community which, in turn, helped build its testnet. The project was finally ready for public launch in late April 2020.
In essence, RNDR is an ERC-20 token that is used by artists within the Render Token’s network. Artists can use the tokens to get GPU power from node operators, who act as GPU providers. The project uses a combination of manual and automatic PoW system, which they named proof of Render.
The system is used to verify whether art has been successfully rendered prior to the payment disbursal and art release. The project also has access to Ethereum blockchain’s security properties, being a member of its network, which allows it to hash all proprietary assets. Furthermore, all assets rendered on the network are watermarked until the payment is delivered by the artists. At that point, the watermark gets removed, and the rendered artwork becomes available for download.
Render Token historical price performance
The earliest RNDR price data comes from mid-June 2020, when the token emerged with a price of $0.053 per unit. The price rose steadily over the summer, reaching its peak on August 28th, 2020, at a price of $0.26. After that, it corrected back to around $0.1, and it remained relatively stable for the remaining months of the year.
RNDR price started seeing a massive surge in early 2021, after the previous Bitcoin bull run started pulling the altcoin market up, as well. In the initial surge, RNDR skyrocketed until it reached resistance at $2.50 in mid-April 2021. However, while the rest of the crypto market crashed about a month later, RNDR prices started dropping immediately after reaching this particular level.
By the time May 11th came and caused the industry-wide correction, RNDR was already near its bottom. It did slightly recover only to correct again, and so it seemed like it has not been impacted too strongly. However, all of this performance, slight fluctuations, and even the surge to $2.5 that happened previously was just a small sample of things to come.
RNDR started accumulating price again in late June 2021, and while it did experience another smaller correction in late august, it shot up on November 1st. For the next three weeks, the token’s price was skyrocketing pretty much non-stop until it finally reached its peak and an ATH that is its highest point to this day — $7.782. After this achievement, which took RNDR nearly 4 times higher than its previous ATH, the project finally surrendered to the bear market that took over the industry on November 11th and started crashing.
By December 10th, its price was cut in half, and while it did recover back to $6.1 just before Christmas last year, it then dropped again, leaving it at $4.6 as the year came to a close.
Render Token price performance in 2022
Render Token’s price did not have a particularly good time in 2022. Throughout the year, the token has been seeing almost nothing but price drops. In the first week of January, the bear market actually let go for a bit, and so the token started the year with a surge that nearly took it back up to $5.5. After that, however, a sharp drop took it to the price of $1.85 by January 24th, which was only about three weeks later.
After that, the bear market took another small break which Render used to shoot up to $4, only to be stopped by resistance at this level. It then dropped again to a support at $2.5, which actually managed to hold it from dropping deeper down until mid-April.
But, after the support cracked, the token kept spiraling down until mid-June, which finally took it to $0.3.
Following this massive price crash, RNDR seemingly found itself too undervalued, as it recovered back to $0.65 in late June and then dropped again to $0.5. The project found its true bottom here, and this level has served as its support ever since, not allowing it to venture further down after that. It did attempt multiple surges, and in August, the bearish influence even let go for a bit since it managed to go all the way up to $0.8. In fact, for the first half of August, the project kept trying to breach this resistance, but around August 15th, the bear market returned, and with a tight grip, it dragged RNDR back down to $0.5, which is where it finds itself right now.
The market sentiment
Many expected the project to shoot up on September first, similarly to what happened on November 1st last year. The crypto winter of 2022 has now been holding strong for about 10 full months, and many were hoping to see its grip weakening, especially after being given hope in early August.
But, as September 1st arrived, the only thing that happened is that the bear market squeezed the token’s price again, pulling it down by 4%, from $0.52.6 to $0.50.4. Still, the project has started recovering yet again, and at the time of writing, it sits at $0.5169.
Still, there is some positivity surrounding RNDR for several reasons. It has taken every opportunity and every weakness of the bear market to start quite a sharp and strong recovery, which means that it is ready to take its price back up at the moment’s notice. It is also one of a few tokens that are currently being considered for listing on Coinbase, as well as one of the 10 to be listed on Binance.
A few weeks back, IvestorsObserver also gave it a bullish rating based on its Sentiment Score, which measures the performance of the token over 5 days by volume and price movement, which shows that the community is definitely buying this token and moving its price around whenever possible. All of this shows that there is positive, bullish market sentiment surrounding the token, and that RNDR is a valuable investment, especially now when its price has been so badly damaged and is only waiting for an opportunity to recover.
What will happen next?
So, what happens next for RNDR? For the time being, we expect to see the token recover slightly from $0.5 only to be brought back down, as it has happened several times already. It is likely that this support will continue to hold unless the market gets hit with another bearish wave and it turns out that $0.5 is still not the bottom for the token.
Meanwhile, many in the financial industry’s top names have lent their weight to the token’s prognosis. There have been numerous collaborations and events in the crypto sector that demonstrated that users are confident in crypto, and RNDR itself. The only thing that investors are waiting for now is for the bear market to start losing its footing, and since it did not happen on September 1st, users expect to see it in the final months of the year. Once it happens — and it should happen, based on historical data — RNDR should receive a tremendous boost that might even take it back up to $1.52. In fact, it is expected for its price to land anywhere between $1.45 and $1.68. Then, in 2023, the average price of RNDR should continue to increase, with expectations for it to be between $1.83 and $2.01. This increase will then speed up in years to come, with the final prediction saying that the average RNDR price should reach $4.18 by 2030, which is likely a very modest forecast.
Still, with this being the crypto industry, almost anything is possible, so all that anyone can do is keep an eye on the market and hope for the best. This is especially true when it comes to Render Token, which has shown that it has the potential to shoot up, as well as that it is currently heavily undervalued. A surge will happen as soon as the bearish market lets go for a bit, and the only real questions are when it might happen, and how much will the coin go up.
To learn more about Solana, visit our Investing in Render Token guide.
The post Render Token (RNDR) sinks to $0.50 on the first day of September 2022 appeared first on Securities.io.
