Enthusiasts of this altcoin are returning to hoarding and betting on its future, even after falling 93.7% from its all-time high, according to analysis by Santiment.

We are talking about Ren (REN), an open protocol built to provide interoperability and liquidity between different blockchain platforms. According to some on-chain data collected by one of the biggest analysis companies in the cryptocurrency market, it is in a “decent buying zone”.

The recent price movement, according to the analysis published on the Santiment blog, is related to the deposit of coins on exchanges, which can be seen in the chart below.

REN offer at brokers (in purple) and REN price (in green).  Source: Santiment
REN offer at brokers (in purple) and REN price (in green). Source: Santiment

While last month’s drop in REN came in tandem with the increase in the token’s supply on exchanges, the metric also reveals accumulation by some investors as the price hits its monthly lows.

Corroborating the thesis that investors are eyeing this altcoin, the growth of the network sees peaks of new portfolios being created even with the price falling. This was noticed in REN’s last two price declines.

Network growth (in purple) and REN price (in green).  Source: Santiment
Network growth (in purple) and REN price (in green). Source: Santiment

And, finally, the most relevant data brought by the analysis company is the balance sheet history of Ren’s Darknode contract, which, according to Santiment, is related to the main use case of the protocol.

Staking on Darknodes results in user fee gains and thanks to this it is easy to see Ren’s movement and how it relates to the quote.

Historical balance of Ren's Darknode contract (in purple) and price (in red).  Source: Santiment
Historical balance of Ren’s Darknode contract (in purple) and price (in red). Source: Santiment

As of October 2021, the price of the asset started to fall in tandem with the amount of REN staking. But from March 2022, the scenario began to change, indicating that investors returned to accumulate the cryptocurrency, even without a reaction from the price.

“The staking contract now has more REN than it did a year ago,” noted Santiment.

But what is your opinion on this crypto asset, is it really worth buying REN or are there other reasons for the price not going up that the analysis did not address? Leave a comment below to add to the topic.

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