10 May 2024

We are in choppy May – Bitcoin is trading within a range and is not showing its cards early. Typically, Q3 of an US election year (like 2024) demonstrates significant growth after a dull Q2. Its playing out similarly this year. It would be prudent for all crypto enthusiasts to load their bags before May ends to cash in on an expected strong quarter ahead.

On this note, Arjun, Giottus co-founder and COO, is taking an exclusive webinar for you tomorrow (May 11, 2024) at 11am IST. This youtube-based webinar is titled "Make the best of this crypto bull run & create a winning strategy" and is sure to be of benefit to you. Access this webinar here and click ‘Notify me’ to remind you when it starts.

In our Hot Take today, we analyse one of the ecosystems that is showing early strength this bull run – Render.

Before that, lets dive into the top-3 stories and macros of the week.

Top-3 stories of the week:

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2

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The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $2.32 trillion - UP 4%

• Bitcoin price - $62,837 - UP 5.5%

• The dollar index (DXY) - 105.32 - UP 0.1%

• Bitcoin Dominance - 54.8% -  UP 1.2%

• Crypto Fear and Greed Index - 66 - Market is in Greedy State

THE HOT TAKE

RNDRing growth

The March 2024 GPU Technology Conference, conducted by Nvidia and focusing on AI, has drawn attention to the growing interest in artificial intelligence. With AI becoming increasingly popular, people in the crypto market are looking for ways to gain an edge by betting on AI-related proje s. Tokens like NEAR, WLD, FET and Bittensor's TAO are gaining traction due to their ties to AI. NVDA's strong performance in the stock market has also led people to consider tokens with similar drivers.

In this context, Render’s RNDR has become the main contender in the AI token race for betting on the AI/GPU-shortage story. In early March, RNDR experienced a surge in price leading up to Nvidia's conference, nearly doubling in value. RNDR had a drop in April though it has bounced significantly this week and is up by ~40%.

We discuss this narrative and argue why you should invest in RNDR this bull run

What is Render?

The Render Network is a decentralized system that uses blockchain to allow distributed GPU rendering. Rendering is an essential step in computer graphics. It’s the process of turning raw data into the images you see in movies or games. Instead of relying on centralized providers like Amazon AWS or Google Cloud, Render connects people who need rendering power with those who have idle GPUs.

Founder and CEO Jules Urbach has almost 30 years of experience in the industry. He created the web’s first 3D video game platform and licensed the software to Macromedia, Disney, Warner Brothers, and several other well-known corporations.

What does RNDR do?

RNDR is the main token used in the Render Network. It’s essential for transactions within the network, operating first on Ethereum and later moving to Solana. One of its key functions is in the Burn and Mint Equilibrium (BME) model, which maintains balance in the decentralized economy.

Creators spend RNDR to access decentralized GPU power for rendering tasks. After tasks are completed, a transparent burn process is initiated, creating a permanent record on the blockchain. This process also contributes to emissions-based rewards distributed at each epoch's end.

Node Operators, responsible for processing tasks, receive RNDR rewards, incentivizing their participation. They get rewards for being consistently available and for completing tasks.

Liquidity Providers contribute staked RNDR to liquidity pools on exchanges, crucial for the BME system’s operation. They receive rewards based on their contributions, ensuring RNDR availability.

Overall, RNDR is vital for aligning the interests of Creators, Node Operators, and Liquidity Providers, driving the decentralized rendering ecosystem.

Recent performance and technical analysis

RNDR has a market cap of $4.3 billion currently with a circulating supply of 388 million.

RNDR has seen notable growth with the AI narrative in the past year - growing almost 550% since June 2023. AI projects are now leveraging the GPU marketplace provided by RNDR to do various things such as graphics for applications, and advanced AI-powered videos generated from text.

Notably, OpenAI’s SORA can now execute rendering requests via RNDR, paving the path for next-level graphics in the ever-expanding AI sector in crypto and beyond. RNDR has been active throughout 2023/24 and the project has also collaborated with CT’s most renowned creators like Beeple.

Currently, the Render (RNDR) is trading at $11 and has breached the upper boundary of the horizontal wedge, earlier this week. The asset continues to form higher lows and higher highs in short term, with broadening price swings. It may continue to consolidate at $11 levels in the short term before testing the upper boundary at $13.

RNDR is currently trading well above its 100-day moving average of $8.50 which acts as an immediate support level. Its RSI reading is at 65,and is cruising towards overbought territory. If RNDR successfully breaks and holds through the $13 barrier, it may retest the $16 level soon.

Due to ascending consolidations, whales continue to make profits on RNDR.

Key Takeaway

We have observed a high price correlation between RNDR and NVDA, the stock. With Nvidia’s upcoming quarterly results slated for May 22, traders are hoping for an upswing in RNDR’s price. Apple’s WWDC, alongside expectations of GPT-5 in the summer, is also creating quite a buzz in the AI community. This could prove to be the catalyst for AI rally between May 22 and June 10 that could lead to significant surge for RNDR token in the short-term.

Most definitely, RNDR is among the key altcoins we advise investors to bet on this bull run. The AI narrative along with an already demonstrated performance makes RNDR a strong altcoin to buy and hold.

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.