Token tracks tech stocks on blockchain-based render network as crypto market diverges
The native cryptocurrency RNDR of Render Network, a provider of decentralized GPU-based rendering solutions, has gained momentum this month, in line with technology stocks, despite the overall lull in the crypto market. According to data from TradingView, RNDR has risen 6.5% to $2.55, reaching a 13-month high of $2.93 earlier this month. Meanwhile, the tech-heavy Nasdaq index on Wall Street has gained nearly 8%. Bitcoin (BTC), on the other hand, has decreased by 5%, diverging from Nasdaq, and the total market value of all cryptocurrencies has fallen by 3.5%.
“RNDR has been a good high beta Nasdaq play in recent weeks,” said Lewis Harland, Decentral Park Capital’s portfolio manager, in Friday’s market update. He noted that the narrative of artificial intelligence has been a catalyst for gains in both tech stocks and RNDR.
A week ago, Nvidia, a U.S.-based chipmaker, forecast surging revenue and said it is increasing supply to meet the spike in demand for its artificial intelligence (AI) chips, which are used to power ChatGPT and similar services. Since then, investors have been scrambling to take exposure to shares in Nvidia and other assets, such as Render’s RNDR token, that align with the AI narrative.
According to crypto fundamental analyst Jason Choi, RNDR stands out because of its unique convergence of essential narratives, such as integrations with the Apple ecosystem, Metaverse involvement, AI integration, and 3D rendering capabilities. He said, “As demand for GPU computing power is expected to soar in fields like gaming, metaverse development, architecture, animation, product design, augmented reality (AR), and more recently, AI tooling, RNDR may present an accessible alternative to expensive computing equipment typically required for creating 3D graphics.”
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It should be noted that RNDR has also benefited from speculation that Apple’s upcoming virtual reality headset will use Render Network’s decentralized graphics processing network.
Edited by Parikshit Mishra.
