Review of the 2600% rise of Render Network (RNDR), the leader of the AI ​​sector

The AI ​​track continues to be hot, and related concept currencies are still soaring. The NVIDIA GTC conference to be held on March 18 has further amplified the enthusiasm of AI investors.

In this round of AI market, Render Network (RNDR) is a leader in the field. Not only has the price of the coin risen to a record high of $10.784, but it has also ranked among the top in the sector with a 2,600% increase since last year.

For ordinary investors, a 26-fold return is still very impressive. Today, Golden Finance will review how the blue chip Render Network (RNDR) was created, and hope to find some commonalities among high-explosive coins.

Flying in the wind, RNDR staged a huge increase of 2600%

The AI ​​trend has been blowing since the beginning of 2023, when the AI ​​sector of the crypto industry also ushered in the first wave of explosions with the emergence of ChatGPT. After that, it experienced a volatile correction and continued to rise, and finally collectively achieved high returns in March this year.

Among them, RNDR's performance is the most eye-catching.

According to Coinmarketcap data, in early January 2023, the price of RNDR was about $0.4, and then reached stage highs in May and December. When many investors thought that the narrative of the AI ​​sector had come to an end, RNDR rose again, and finally reached a record high of $10.784 on March 7 this year, an increase of about 2,600% from the beginning of last year.

Currently, the market value of RNDR is approximately US$3.631 billion, and the circulating supply has reached 70.48%.

Render Network is a decentralized GPU-based rendering solution provider that aims to connect users who want to perform rendering jobs with people who have idle GPUs to process rendering. Owners can connect their GPUs to the Render Network to receive and complete rendering jobs using OctaneRender.

Supported by parent company OTOY, the RNDR team is headquartered in Los Angeles with team members around the world.

In terms of the project's operating principle, to put it simply, the target object uses RNDR to exchange the GPU computing power of the GPU provider (node ​​operator).

RNDR utilizes a combination of manual and automated proof-of-work systems, or in this case proof-of-rendering, to verify that all artwork has been successfully rendered before payment is made and the artwork is released. Using the inherent security properties of the Ethereum blockchain, proprietary assets are hashed upon upload and sent one by one to nodes for rendering.

All RNDR payments are stored in escrow during rendering and released to node operators after successful work is manually verified by the commissioned artist.

To protect against malicious actors in both user bases, all assets rendered on the network are watermarked until payment has been successfully made, at which point un-watermarked renders can be downloaded, and all payments are held in escrow until manually verified as correct renders.

The project raised US$1.16 million through ICO in 2018 and US$30 million in strategic financing in 2021. The current market value of the project is US$2.145 billion, and the coin price is US$5.63.

Behind the high returns: a combination of internal and external factors

There are multiple factors behind RNDR’s ability to gain a profit of about 26% in about a year.

First, the overall external environment is improving. The soaring price of Bitcoin has greatly boosted altcoins. At the same time, the main narrative in the financial market since last year has been the AI ​​sector. As an old AI project, RNDR has long-term project construction experience and mature business products. Therefore, it is easier to take off under the favorable external conditions.

The recent news that the founder of Render will attend NVIDIA's GTC24 conference and deliver a keynote speech has also given an additional positive stimulus to the price of the currency.

Secondly, the main test and commercial demand of AI is computing power. And RNDR's service function happens to help solve the huge demand for computing power. Render Network allows complex GPU-based rendering jobs to be distributed and processed on a large distributed peer-to-peer network. This enables creators to perform calculations at an unprecedented scale and price, and provides stronger privacy guarantees than any existing cloud provider.

In terms of the project's operating principle, the target uses RNDR to exchange GPU computing power from GPU providers (node ​​operators). RNDR uses a combination of manual and automated proof-of-work systems, or in this case, proof-of-rendering, to verify that all artworks have been successfully rendered before payment and artwork release. Using the inherent security properties of the Ethereum blockchain, proprietary assets are hashed when uploaded and sent to nodes one by one for rendering.

All RNDR payments are stored in escrow during rendering and released to node operators after successful work is manually verified by the commissioned artist.

To protect against malicious actors in both user bases, all assets rendered on the network are watermarked until payment has been successfully made.

Finally, the team’s continued construction of the project is also a major incentive. In November last year, Render Network officially announced that it had successfully completed the upgrade to Solana, which means that this leading company in the field of decentralized rendering has officially migrated from the Polygon ecosystem to the Solana ecosystem.

This migration involves the implementation of a number of RNP proposals (Render Network Proposals) that have been reviewed and approved by the Render community over the past year or so. It includes not only the migration of the Layer1 ecosystem, but also the issuance of new tokens (RENDER) and the implementation of the new Burn and Mint Equilibrium (BME) token economic model. It will have a profound impact on the entire Render ecosystem and all RNDR (soon to be upgraded and renamed the SPL token RENDER) stakeholders.

In addition, Render is also undergoing more innovative upgrades, such as the latest Proposal 007, which plans to introduce the FEDML cloud platform and various other computing clients such as Beam, io.net and other cloud platforms. In addition, at the Solana Breakpoint 2023 conference last December, Render also announced that it would provide users with multiple renderers, adding Maxon's Redshift, Physical and Standard renderers.

summary

As for the current increase of RNDR, 26 times is obviously a high point. But for the crypto industry, there are many cases where the increase is as high as 100 times. Therefore, there is still room for expectation for RNDR. If the narrative of AI can continue, then the spring of RNDR will surely last longer.