Altcoins: renBTC (RENBTC) - What Is It? - A Deeper Look Into the renBTC (RENBTC) Platform
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Summary:
- What is The renBTC Platform and how does it work?
- Uniqueness of the renBTC exchange.
- renBTC’s past, present and future price positions.
The renBTC Exchange
renBTC is a ERC-20 token that runs on the Ethereum blockchain, RENBTC tokens are pegged to Bitcoin (BTC). Each RENBTC token can always be exchanged for 1 BTC, hence the RENBTC seems to maintain its value at a market rate close to Bitcoins.
renBTC is minted on the Ren platform, Ren is an open protocol which allows everyone access to the inter-blockchain liquidity this function helps bring assets from other blockchains to Ethereum decentralised applications (DApps). The renBTC is a direct competitor of Wrapped Bitcoin (WBTC).
Minting RENBTC tokens is a fairly uncomplicated process, users simply send their Bitcoin (BTC) to renVM, which secures the BTC asset and mints the equivalent number of renBTC on Ethereum.
Unlike other tokens that are backed by Bitcoin, renBTC is not a synthetic token and it is not reliant on any liquidation mechanisms to ensure that its value remains pegged to Bitcoin’s value, instead it is a direct supply peg, this means there are always enough BTC in a reserve to cover the circulating renBTC supply.
The process of redeeming RENBTC is just as simple as the process of minting it. The user sends their RENBTC back to renVM (which comes with a small gas fee) which then releases the native BTC token to the users address. The renBTC tokens are then destroyed, this is to ensure that the reduced supply matches the reduced reserve.
renBTC is currently the rarest cryptocurrency in the world, with only 4,823 RENBTC in circulation and a maximum supply of 13,689 tokens. The current market capitalisation of renBTC is $115,317,425.
Advantages and Disadvantages of renBTC
Advantages:
- One of the main advantages is the flexibility that is provided through the use of the REN protocol, one can basically turn their tokens into any of the supported tokens with little problems.
- The minting and burning of the renBTC tokens is a relatively simple, very secure and private process.
- Generating RENBTC tokens is actually one of the most private means to participate in the decentralised finance (DeFi) world apart from DAI.
- Another advantage of RenBTC is its speed, once users obtain the RENBTC token they depend on Ethereum times, the internal process that is handled by the Ren protocol is fast thanks to its consensus protocol that is called Hyperdrive.
- RENBTC also allows interoperability that few projects are able to achieve currently, this has allowed the project to position itself at the top of the DeFi world.
Disadvantages:
- One of the main disadvantages is the RENBTC is an ERC-20 token and therefore is limited by Ethereums limitations.
Past, present and future prices of The renBTC network (RENBTC)
RENBTC token’s price took off within a few months of being launched, reaching its first peak within the first quarter of 2021 reaching a price of $61,061.45. Thereafter, its price declined, however remained elevated, the next major drop in price occurred during the second quarter of 2021. RENBTC began climbing again and reached its all time maximum price of $63,826.73 in November of 2021. Since its maximum price in November 2021, RENBTC has been on an overall declining trend. The volatility in its price has staggered in both the upward and downward directions, the crypto has seen much volatility, which is a normal trend for the volatile nature of the crypto market.
Over the past few months, the global markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, RENBTC does fall under this category.
According to some analysts, the future price of The renBTC network (RENBTC) could reach up to $51,500 by 2026 and could see a price of more than $1,237,471 by 2030. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
RENBTC Price Chart
Sources: finance.yahoo.com, coinmarketcap.com, academy.bit2me, rarest.org,
