Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Can Ren (REN) make money from Darknodes and Multichain Transactions?

Ren (REN) is a protocol that allows users to move tokens and other assets between blockchains. For example, they claim you can use a feature they the RenBridge to wrap Bitcoin (BTC) to make it available on the Ethereum (ETH) blockchain.

For instance, they claim you can use RenBridge to wrap Bitcoin, Bitcoin Cash, Digibyte, Dogecoin, Filecoin, Luna, and Zcash. Users can use RenBridge to send those assets to the Binance Smart Chain (BNB), Ethereum, Polygon, Fantom, Avalance, Solana and Aribtrum blockchains.

Developers can integrate Ren with decentralized apps (DApps). Similarly, the Ren Explorer allows users to track cross-chain transactions in real time.

What is Ren?

Ren’s ecosystem comprises a virtual machine (VM) that conducts transactions and mints assets across several blockchains and Darknodes. The Darknodes are the servers that Ren operates on.

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A virtual machine (VM) is the digital computer that runs a blockchain. Ren cliams its VM operates across several blockchains, including Ethereum and the Binance Smart Chain. The VM turns assets such as Bitcoin (BTC) into synthetic assets, it can transfer between chains. The VM then conducts the transactions.

Ren claims the total market volume of transactions made via the RenVM was $11.459 billion as of 9 June 2022. Additionally, Ren claimed to have $287.167 million in locked value on 9 June 2022. They claim the value of Ren assets processed by the Ren VM was $201.9 million on 9 June 2022.

Ren Darknodes

Ren pays computer owners and users to operate the Darknodes. Ren claimed Darknode owners were receiving a Ren-Bonded an annual percentage yield (APY) of 20.19% on 9 June 2022. Ren reported the Darknodes had earned $16.759 billion in Total Network Fees, a community fund of $442.795 million, and $623.961 million on 9 June 2022.

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To explain, Ren is trying to build an alternative infrastructure to the cloud and the internet through the Darknodes. This infrastructure resembles the Onion Router or TOR. TOR uses private computers to build an alternative internet to avoid tracking and surveillance. The difference between Ren’s Darknodes and TOR is that Ren pays node operators while TOR relies on volunteers.

One of the goals at Ren appears to be creating an alternative internet or blockchain for Web3. Ren uses several integrators (apps) to connect its Darknodes and Web3. Those integrators include the zeroDAO, Catalog, RenBridge, Varren Decentralized Finance, MEW, CODEFI Activate, and Badger.

The Ren Ecosystem

They claimed Ren was connecting eight blockchains and supporting 28 assets with one underlying blockchain on 6 June 2022. They wrap the assets one-to-one tokens similar to stablecoins that make purchases in cryptocurrency.

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For example, Ren’s wrapped Bitcoin (BTC) can make purchases on Ethereum in Bitcoin. Similarly, Ren’s wrapped Zcash could make purchases or deposits on the Binance Smart Chain.

What Value does Ren (REN) offer?

Mr. Market thinks Ren (REN) offers some value. For instance, Ren was CoinMarketCap’s seventh-most-trending cryptocurrency on 6 June 2022.

Similarly, CoinMarketCap estimates Ren was the 161st largest cryptocurrency, with a Coin Price of 15.26₵ on 9 June 2022. CoinMarketCap gave Ren a $152.490 million Market Capitalization, a $152.649 million Fully Diluted Market Cap and a $35.957 million 24-Hour Market Volume on 9 June 2022. They based those numbers on a Circulating Supply of 999.038 million REN, a Maximum Supply of one billion REN, and a Total Supply of 999.999 million REN.

In contrast, Coinbase gave Ren (REN) a 15₵ Coin Price, a $152million Market Cap, and a 24-Hour Market Volume of $36.1 million on 9 June 2022. They based those numbers on a Circulating Supply of 999 REN. Ren is an unstable cryptocurrency with an all-time high Coin Price of $1.83, according to Coinbase.

I think Ren is an interesting DeFi protocol that could solve a real problem. The problem is the difficulty people have moving assets between blockchains. However, Ren’s potential value could small because the demand for multichain transfers could low.

Still, Ren could make money from DeFi. Thus I think it is worth an examination by speculators.