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Peer-to-peer GPU computing network Render (RNDR) surged to a two-year high on February 23, fueled by optimism about the growing demand for generative artificial intelligence (genAI) and image-rendering services.
Over the last month, Render has gained over 100%, aided by two key developments that were instrumental in helping AI crypto coins like RNDR token outperform the rest of the market — chipmaker Nvidia’s record-breaking quarterly earnings and the launch of OpenAi’s text-to-video AI product Sora.
Are you interested in adding it to your portfolio and looking for an RNDR token price prediction?
In this article, we will analyze the RNDR token price performance and explain why the Render token is going up.
Key Takeaways
What Is Render (RNDR)?
In this section, we summarize the Render Network to help you decipher whether the Render token is a good investment for you.
Render is a decentralized marketplace for GPU computing power. The network provides near real-time computing power for 3D rendering tasks, AI and machine learning (ML) training, and complex computations.
Render was launched in 2009 by Jules Urbach, who is the founder and CEO of a Los Angeles-based cloud graphics company, OTOY. The Render Network team is backed by OTOY.
In October 2017, Render conducted its first token sale of the RNDR token. Render launched its mainnet on Ethereum (ETH) in April 2020.?
In November 2023, Render successfully completed its migration from Ethereum to Solana (SOL).
A global investment firm VanEck stated in a report:
“Render, who recently migrated to Solana, was initially focused on connecting artists to decentralized groups that would provide GPU power to render images and videos. However, Render has begun to focus its decentralized GPU fleet on satisfying machine-learning workloads to support deep-learning models.”
How Does Render Work?
Rendering is the process of generating two-dimensional or three-dimensional images using a computer program. It is used to create images, videos, animations, simulations, visual effects, virtual reality, and video games. Rendering requires GPU or CPU computing power to process the images.
The Render Network allows GPU owners to loan out their computing power to creators and developers in need of it. In return, GPU service providers earn RNDR tokens for processing artists’ rendering needs. Creators have the option to pay for their rendering job in fiat or RNDR.
GPU providers need to build their reputation over time to receive higher job volumes by completing tasks in a timely and accurate manner. Render users also have reputation scores that help the network reduce unintentional congestion from failed renders or malicious activity.
Render charges a 5% network fee on all transactions, which is used to cover network operating costs.?
Why Is Render Token Going Up?
Render has been on a tearing run since September 2023. RNDR token price has surged 480% from $1.372 on September 1, 2023, to an over two-year high of $7.96 hit on Feb. 23, 2024.
Tony Severino, a CMT candidate, technical analyst, and the author of the CoinChartist VIP newsletter,?told Techopedia:
“RNDR is up over 20% on the heels of NVDA earnings, but could have a lot more upside ahead. RNDR’s current all-time high is $8.75 per token. Today, RNDR is trading at roughly $7.17 — only around 15% from the previous peak. Considering the strength in RNDR and growing demand for GPU processing power, new all-time highs are highly probable.”
Here are some key Render token news and reasons why the token has seen such strong price action.
Complex Rendering Jobs Boost Demand for Render’s GPU Computing Services?
2023 was a big year for Render as the GPU marketplace saw demand for its services spike due to growth in complex, large-scale displays, spatial rendering, and extended reality (XR) jobs.?
In its Q4 2023 report, Render noted that Apple’s foray into the XR field with the Apple Vision Pro was a demand driver for intensive rendering jobs required for stereoscopic content, higher frames, better resolutions, and increased field of view.?
The network also added that it carried out the first large-scale display and spatial rendering job for the Las Vegas Sphere during the quarter.?
In a note to Techopedia, Anndy Lian, Intergovernmental Blockchain Expert, explained:
“The main reason why Render token has exploded is because of its AI and GPU/ Nvidia’s narratives. The partnership with Apple also gives credibility and opens up a huge market opportunity for RNDR to showcase its technological edge over competitors.”
In 2023, Render saw the total number of frames rendered increase by nearly 14% year-on-year to 9,972,981 frames.?
Meanwhile, the amount of total RNDR tokens used during the year reached 2.7 million tokens in 2023 compared to 1.85 million in 2022, leading to an increase of 850,494 RNDR used.
Nvidia’s Record Earnings Back AI Hype
On February 21, 2024, GPU chipmaker Nvidia said Q4 2023 revenue jumped 265% year-on-year to a record quarterly revenue of $22.1 billion on the back of demand surge for its chips. The optimism from Nvidia’s blockbuster earnings spilled over to the crypto markets, causing GPU computing tokens like RNDR and Akash (AKT) to surge as well.
Jensen Huang, founder and CEO of Nvidia, said:
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries, and nations.”
More importantly, Nvidia signaled continued strong demand for its GPU chips in its outlook for the first three months of 2024.?
The company expected quarterly revenue to rise to $24 billion, up from $22.1 billion posted in the last quarter of 2023.
Launch of OpenAI’s Text-to-Video Sora Signals Growing Demand for Rendering
OpenAI’s text-to-video generative AI model called Sora was unveiled on Feb. 15, 2024. Sora is capable of generating videos of a minute’s length with multiple characters, motion, details, and backgrounds. The complex nature of computing required to convert text-to-video and train AI models to improve their results is widely expected to increase the demand for computing resources.
It was not surprising to see AI cryptos surge on the news.?
Some crypto projects, like the decentralized video infrastructure network Livepeer (LPT), even announced that it would bring Sora capabilities to its network in the coming months for users looking to create generative AI videos.
Livepeer tweeted:
Today @OpenAI revealed their research progress on the Sora generative video AI model, with some impressive demonstrations.
This helps show the world how powerful generative video can be, and progress on open models is moving faster than ever. But generating these videos requires… https://t.co/srd1TkV3bY
— Livepeer (@Livepeer) February 15, 2024
Render Token Price Prediction 2024: Cautiously Bullish?
Anndy Lian believes that the RNDR token is a “promising project” with a clear vision and a strong value proposition.
“It is solving a real-world problem and creating a win-win situation for both creators and providers of rendering resources. It is also leveraging cutting-edge technology and partnering with industry leaders to deliver high-quality and cost-effective rendering solutions.”
However, Lian remains cautious that RNDR price movement could be hampered by Render’s scalability and security vulnerabilities, which are largely dependent on the Layer 1 blockchain a dApp operates on.
Although Render had migrated away from a slower and more congested Ethereum L1 in November 2023, Lian was wary of the uncertainties and operational challenges that Render could face on Solana.
Commenting on the future of Render and RNDR token, Alex Galert, CEO of Brainz, said:
“Render’s potential is vast, especially as AI, VR, AR, and other tech trends continue to grow. While $RNDR has seen significant price appreciation, most of its emissions are completed, making it an attractive choice for those bullish on AI and GPU demand.”
In other RNDR token news, Coincodex was bearish on the RNDR token and expected it to slip to $7.48 in its 3-month Render token price prediction.?
At the time of writing, RNDR’s 14-day relative strength index (RSI) stood over 87 points, indicating an overbought asset.
However, Tony Severino believes it could be a positive sign.
“RNDR is a clear crypto market leader with a weekly RSI reading of 83.89. While such a reading can signal overbought conditions, it can also point to substantial strength. Additionally, the weekly RSI is making a higher high, generating another buy signal despite clear overbought conditions. RNDR should continue to show upside performance until the monthly RSI reaches overbought levels. It currently shows a reading of 66.39.”
Looking forward, Servino gives a bullish Render token price forecast:
“If RNDR can exceed its previous all-time high, possible targets include the 1.618 Fibonacci extension, which resides at roughly $66 per token. This represents an over 8x increase from today’s RNDR price. Considering the technical strength, fundamental demand, and buzz around AI, RNDR is a promising crypto project worthy of potential investment.”
The Bottom Line: Is Render Token a Good Investment?
The hype around generative AI has pushed the Render token to near-record-high levels. On February 23, 2024, the RNDR token was less than 10% shy of its all-time high of $8.76.
However, investors might consider investing in the Render token with caution as, like any cryptocurrency, it is extremely volatile and considered a risky investment. Remember that analyst predictions can be wrong.
Always do your own research before investing. This article should not be considered investment advice and is for information purposes only.
