It's all about the narratives, baby. RNDR made a big narrative splash earlier this spring, when a wave of AI hype gave way to real questions about how will the scalability and security of All This Media Data be achieved. Furthermore, does blockchain and decentralized computing have a future in it?
The market responded with a resounding, albeit premature, yes. RNDR enjoyed 5x run from February to June while the rest of the market was largely stagnant. As of now, in December 2023, nearly all of the reviews for RNDR are from Summer 2023, during this peak. So let me offer a retrospective of where RNDR has gone, narrative-wise, since then.
In retrospect, RNDR got overhyped at a time when we were all still asking "Wen Moon?" A great project, for sure, but a beneficiary of an emerging narrative about which projects will help build the Big Decentralized Computer. RNDR price didn't tank, but it bled out slowly over the summer, only making moderate gains since the Fall season while the rest of the market melted up. A respectable showing for sure, but one where baked-in price mutes the current upside.
And now, the good news! The narrative that made RNDR attractive as a long-term hodl still applies now. We're definitely going to need that Big Ass Computer Of The Future, and especially for it to be decentralized and owned by its own users. But be forwearned: this project is an ambitious undertaking that will take many years and much resources to scale, like the old internet. The tokenomics look cool. No other similar projects have stepped up to challenge it for attention or innovation. RNDR has a lot going for it.
But the most bullish thesis for RNDR is that it is part of an even larger narrative: that blockchain projects are collectively building the infrastructure of a massive decentralized computer, to be owned and governed directly by stakeholders. So, investing in RNDR in 2023 could be like investing in early NVIDIA. Or Bitboys! Either way, it'll be years before we find out, but, as we've seen earlier this year, sometimes the narrative drives the price more than the price drives the narrative.
Reference: Render on Medium Render on CoinGecko Show Less
