Is REN a Good Investment?

Introduction

RenVM is a permissionless and decentralized virtual machine protocol. It is a secure network of virtual computers that enables cross-chain lending, exchanges, collateralization, and more, by powering interoperability for decentralized applications. RenVM acts as the engine that powers this decentralized interoperability solution.

Also, RenVM provides a scalable, practical interoperability solution. Scalability is a feature that can only be found in a limited number of solutions. It is also the only solution that allows for secret computation over multiple inputs and multiple parties. RenVM is not a product or an application on its own; it is a network (and an accompanying SDK) that enables developers to make their DeFi applications cross-chain functional.

How does REN work?

We told that RenVM makes secret computation over multiple inputs and outputs possible. But how? The answer is using Darknodes. Darknodes are a decentralized virtual network of machines powering RenVM, and in return, they earn rewards for contributing their network bandwidth, computational power, and storage capacity to the network. RenVM is replicated over thousands of these machines that work together to power it. RenVM comprises four points:

a) Shamir's Secret Sharing, which is how RenVM keeps data secret. A secret is divided into multiple shares, with participants in the secret sharing scheme needing a majority of the parts to be able to reconstruct the secret. b) Secure multiparty Computation (sMPC), which shows how RenVM runs secret scripts efficiently. RenVM utilizes a pioneered state-of-the-art sMPC algorithm that allows untrusted Darknodes to jointly run scripts without revealing the inputs or outputs of the script to anyone, not even to the machines powering RenVM.

c) Byzantine Fault Tolerance, which means that the network thrives even if Darknodes become unavailable or behave maliciously. Scripts keep running, and secrets remain secret. d) Hyperdrive, a modified version of the Tendermint consensus algorithm designed specifically for sharding and sMPC.

Financial Analysis

Let's start by looking at REN's Return On Investment (ROI). REN's ROI for the past year was 164%, which seems interesting for any investor. However, if you compare it to its similar projects' ROI, you will change your mind. REN underperformed compared to its similar projects and the top 1500 projects in the market, with 204% and 4,074% ROI, respectively. However, if you had bought REN a month ago, you could enjoy a 61% profit. You can find more information about REN's ROI here.

Popularity is another critical factor while analyzing cryptocurrencies. REN's Twitter account saw an increase of 30% over the last six months, and its Reddit subscribers rose slightly by 4%. You can have Free access to our popularity report about REN here.

Moreover, our data indicate that REN's rank among the market's top cryptocurrencies in terms of market capitalization has decreased constantly from mid-April 2021, where it ranked 113, to mid-August, ranked 148. After that, the trend got reversed its rank started to get better. Today, with more than $731 million worth, REN is ranked as the 124th cryptocurrency in the market.

REN's price also followed a similar trend. Starting at $0.94 on April 19, 2021, it decreased to only $0.27 on July 21. After that, the trend became upward, and the price surpassed $0.8. Moreover, REN's liquidity score is 57% more than the market's average score, which means that you will not face much difficulty selling your REN if the market is falling. Our daily report on REN's price, market cap, and liquidity score can be found here.

You're saying that I should invest in REN?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.