Recent developments have shown that L2 solutions on the Ethereum crypto platform are not as decentralized as they seem. A situation which, it seems, is leading to a wave of withdrawal from crypto projects which were betting their strategy on this blockchain.
Render Network, a crypto project that abandons Ethereum for Solana
Crypto Render (RNDR) is experiencing a mixed market situation. Its price in fact experienced an unexpected fall of 10.50% in 24 hours, falling to $2.22 after failing to cross the $2.55 mark.
This surprising development follows the successful transition of the Render Network, the company issuing this crypto. According to recent information, the asset operational since 2017 on Ethereum has migrated to join the Solana blockchain.
A decision which is expected to strengthen its position in the crypto market. In any case, this migration is considered a “decisive moment” for the crypto project Render Network. The latter hoping to take advantage of the advantages of the Solana blockchain.
“Solana’s incredible transaction speeds, low costs, and commitment to web-scale architecture make it a perfect solution for the Render Network as we continue to build a scalable, decentralized metaverse infrastructure” , said Jules Urbach, founder and architect of the Render project.
Solana, the “Ethereum killer”?
In an announcement published this Friday, November 3, Jules Urbach explained how the Render Network transition was implemented. The crypto platform notably relied on the Wormhole cross-chain protocol to facilitate the transition of assets from Ethereum to Solana.
For this purpose, Render has allocated up to 1.14 million RNDR tokens for grants. Support valued at $2.5 million, intended to cover user transfer fees to Ethereum related to the upgrade. This, for a period of up to three months.
The boss was nevertheless evasive on the underlying reasons which motivated Render Network to leave the Ethereum network for that of Solana. By praising the advantages of this blockchain, the manager criticizes the failures of the Ethereum ecosystem. Particularly its Layer 2 options which can be controlled by Ethereum developers via backdoors.
However, there is a negative feeling that prevails among investors following this decision. Indeed, although RNDR’s relative strength index (RSI) remained in the bullish zone, there was a notable drop in the crypto’s price. The latter could, if this negative sentiment persists, continue to fall and possibly reach $2.08.
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