REN price prediction: What is REN?
By Peter Henn
Updated
It helps people transfer their cryptos across different blockchains, but what is REN?
Let’s take a look at this token, and also examine some of the REN price predictions that were being made as of 28 November 2022.
REN explained
In the world of blockchain technology and cryptocurrency, one of the cornerstone concepts is that of decentralised finance, or DeFi for short. Since, at least ideally, the blockchain is designed to be something that does not answer to a centralised authority, then it follows that it is – again, at least in theory – intended to enable people to access financial services that also do not answer to a central authority.
An often-mentioned statistic is that, in 2017, the World Bank found that about 1.7 billion people across the world did not have bank accounts. With around two-thirds of those people having access to a mobile phone, the hope among many DeFi advocates is that such ‘unbanked’ people can get access to things like investing, saving and loans through decentralised finance.
It is important to mention at this stage that, while it might sound like the idea of creating a financial system and a currency that exists outside of the control of centralised banks applies to pretty much every crypto coin, that is not necessarily the case. The single biggest example of a cryptocurrency that is not, technically speaking, a DeFi coin is bitcoin (BTC).
While supporters of BTC are keen to talk about its pioneering abilities and general relative solidity, something that is worth noting is that the underlying Bitcoin blockchain does not, again relatively speaking, do terribly much. To put it extremely simply, it allows BTC to serve as a store of value, but that is just about it.
While there is no doubt that bitcoin is popular – it is the largest cryptocurrency for a reason and has even been adopted as legal tender in some countries – it is not as well-liked by some blockchain developers, who cite the relatively focused underlying structure of the Bitcoin blockchain has something of a hurdle.
For instance, if you want to take part in yield farming – staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency or, to put it simply, generate interest on your crypto investments – then that is something that Bitcoin can’t really do.
Therefore, it is perhaps inevitable that someone would come up with a program or a platform which would allow people to take part in things like yield farming with bitcoin. The Ren Protocol is one of them.
The system, which was founded in 2017 by software developers Loong Wang and Taiyang Zhang, basically allows people to take bitcoin and then exchange it for another token on another blockchain. The new token is backed to the original one on a 1:1 ratio, meaning it has the same value. Although BTC is the headline crypto that the Ren Protocol works with, it can also operate with other crypto coins, such as dogecoin (DOGE).
In order to do what it does, Ren Protocol uses a piece of software which works with smart contracts – computer programs which execute automatically when certain conditions are met – called Ren Virtual Machine, often abbreviated to RenVM, a term which you might also see used interchangeably with Ren Protocol. RenVM allows people to, at least in theory, carry out transactions without information about either the people making the transaction or the transaction itself being revealed.
Every blockchain-based network needs to have its own cryptocurrency and Ren Protocol has the conveniently named REN token. This crypto is used to operate DarkNodes, the computers which help the RenVM work. Interestingly, you do not need to hold REN to make a transaction on the Ren Protocol, because you can pay the platform’s fees using the native coin of the blockchain you are working on.
Talking of blockchains, the Ren Protocol operates on the Ethereum (ETH) blockchain, which means that REN is a token, not a coin. You might see references to things like a ‘REN coin price prediction’, but these are wrong.
REN price history
REN price history from launch to present – Credit: CoinMarketCapLet’s now cast our eyes over some of the REN price history. While past performance should never be taken as an indicator of future results, knowing what the crypto has done in the past can help give us some much-needed context when it comes to either interpreting a REN price prediction or making one of our own.
When REN first came onto the open market in February 2018, it was worth about $0.082. The crypto had the misfortune to start trading at the start of a so-called crypto winter, and the price remained relatively static, mostly operating between $0.04 and $0.13 for the next couple of years, with the low point coming on 27 November 2018 when it reached an all-time low of $0.01548. There was an upsurge in early September 2020, when it peaked at above $0.50, but then it went down.
Early 2021 was a boom time for crypto, and REN responded well, reaching an all-time high of $1.83 on 20 February. After that, it was time to go back down, and market conditions saw it spend much of the summer under $0.50 before recovering in August and reaching above the dollar in late October, then falling back to close the year at $0.5298.
While 2021 was a year in which crypto highlighted its potential, 2022 has been a weak year for the sector and REN has fallen. The token reached a high of $0.6131 on 3 January, but it was downhill from there as Russia’s invasion of Ukraine prompted a low of $0.249 on 24 February. There was something of a recovery over the following month or so, culminating in a high of $0.5288 on 31 March 2022.
Then things started to go wrong, as a series of market crashes saw it drop to a low of $0.08459 on 15 June. After that, there was a modest recovery, with it reaching $0.2278 on 9 August, but it was downhill again and November saw the collapse of the FTX (FTT) exchange into bankruptcy. This caused a market collapse which sent REN down to a low of $0.07464 before breaking back past 10 cents to stand at around $0.114 on 28 November 2022.
At that time, there were 999,037,500.36 REN in circulation out of a total supply of 999,999,633. This gave the token a market cap of around $114m, making it the 164th-largest crypto by that metric.
REN price prediction round-up
With that all said and done, let’s examine some of the REN price predictions that were being made as of 28 November 2022. It is important to remember that price forecasts, especially when it comes to something as potentially volatile as cryptocurrency, often end up being wrong. Also, many long-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
First, CoinCodex had a somewhat mixed short-term REN price prediction, suggesting that the token could rise to $0.1166 by 3 December before falling to $0.1139 by 29 December. The site’s technical analysis was, however, bearish, with 18 indicators sending out downbeat signals as opposed to 13 making bullish ones.
Next, PricePrediction made a REN token price prediction which argued that the crypto could stay at around $0.11 this year before moving to reach a potential $0.16 in 2023, $0.24 in 2024 and $0.35 in 2025. By 2026, the site said REN could trade at around $0.50, hitting a potential $0.68 in 2027 and possibly breaking through the dollar barrier to reach $1.01 in 2028 before potentially closing the decade at $1.53.
There was then a REN price prediction for 2030 of $2.26, reaching a possible $3.22 the following year.
Meanwhile, CryptoPredictions had a REN crypto price prediction which suggested the token could close 2022 at $0.1754 before falling to $0.1374 in November 2023 and recovering to $0.2184 a year from then. The site went on to make a REN price prediction for 2025 that said the token could start the year at $0.2275, reach $0.2303 in November and close the year at $0.2336.
Finally, Wallet Investor was rather more bearish when it came to making a REN price prediction for 2023. The site said that the token was in for a tough time over the coming year, with it forecast to potentially fall to a mere $0.00800039 by late November next year.
When considering a REN token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency coins and tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.
FAQs
Is REN a good investment?
It is hard to say. The token does have a long way to go before it matches its all-time high, and a lot will depend on how the crypto market performs as a whole.
Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies can be affected by bear markets, so investors should be prepared to make losses and never purchase more than they can afford to lose.
Will REN go up or down?
No one can really tell right now. While the likes of PricePrediction are rather bullish about the REN future price, other sites such as Wallet Investor are far more bearish. Keep in mind that price predictions often end up being wrong, and that prices can and do go down as well as up.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether REN is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Should I invest in REN?
Before you invest in REN, you should carry out your own research, not only on REN but on other coins and tokens related to blockchain interoperability.
Ultimately, this is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research. Never invest more money than you can afford to lose, because prices can go down as well as up.
Is Ren a good investment?
Ren could be a successful investment based on its fundamental analysis, increasing prominence of DeFi, and analyst Ren coin price predictions from Wallet Investor and DigitalCoinPrice.
To mitigate financial risks, however, don’t forget about effective risk management tools, including stop-losses, take-profits and portfolio diversification.
Will Ren price go up?
According to Ren’s current price action, the cryptocurrency is experiencing some bearish pressure and could move down from current price levels. However, based on the longer-term analysts’ forecasts from DigitalCoinPrice and Wallet Investor, Ren could be a profitable long-term investment yielding a good return.
What factors will affect the Ren coin price?
Market sentiments, price performance, national and foreign policies, news and rumors can influence the price of Ren coin. For example, if Tesla founder Elon Musk chose to invest in Ren and back it on Twitter, the price would most likely soar over a short period.
Will Ren hit $5?
According to Wallet Investor’s Ren prediction, the REN price could hit $5.35 by the end of 2024.
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