Render price action was on track to conclude may on a bearish leg after cooling down in the last week of May. But can it bounce back in June especially as Google turns up the heat in the AI segment?
Things have been relatively on the quite side for Render price and network. However, Google’s latest AI offering dubbed VEO 3 offering has reignited the conversation around AI.
Render is the premier offering especially in the AI-powered rendering segment especially as far as digital rendering is concerned. But what does the future have in store for the platform especially as the AI segment expands rapidly?
Google’s recently released VEO 3 offering provided to be the most advanced AI-based rendering platform. This highlighted the extreme competition that decentralized alternatives like Render have to deal with. This pressure may also explain RNDR’s latest weekly price action.
Render Price Action Recap
RNDR price exchanged hands at $4.03 at press time after tanking by over 18% from its weekly top. Price briefly dropped below the $4 price level before bouncing back indicating support build-up at its previous monthly low.
RNDR price action was not yet oversold in the 24-hour chart but it was oversold in the 4-hour chart at press time. This signaled that it was already within a potential bounce back zone but could potentially slide lower hence necessitating a cautious approach.
The downside could signal that investors responded negatively to VEO 3’s latest release. But, RNDR still held on to a 57% premium despite the bearish outcome.
The bearish outcome was mainly due to significant outflows in the spot segment. The coin had about $13 million worth of outflows in the last 3 days but outflows have been cooling down, suggesting the possibility of some recovery during the weekend.
However, it is worth keeping in mind that bearish market conditions could potentially dampen the chances of a strong demand resurgence. In the meantime, some analysts expressed confidence in RNDR’s potential recovery in the long term.
One such analyst was @CryptoWinkle who noted the accelerating growth for decentralized GPU computing capacity. The stated that Render price was in a position to take advantage of that growth especially after its launch on Solana.
How Has Render Performed So Far?
While Render price has not made as much noise as its centralized counterparts recently, it has achieved some noteworthy milestones. For example, it confirmed earlier this year that over 2 million developers visited its platform.
In addition, Render revealed that it had over 100,000 developer sign-ups every month, ranging from startups to enterprise clients. In other words, the platform has been building up a solid user base hence it has been achieving positive growth in that regard.
Render also raised about $80 million through Series C funding, which brought its total funding at the time to more than $157 million. This confirmed healthy investor confidence.
As far as more recent developments were concerned, the network hinted at plan to incorporate a large language model which could potentially be used to troubleshoot problems.
Incorporating a large language model into Render could open up a whole new world of opportunities and AI-related capabilities. This will allow it to compete more effectively with centralized AI rendering services, and make it more appealing to more developers.
Nevertheless, it was abundantly clear that Render and the WEB3 cohort of AI powered services was still lagging behind.
This meant that heavier punches in terms of offerings might be necessary for it to compete more effectively with the centralized competition. On the plus side, the network achieved significant growth and could continue to carve out its niche in the decentralized segment.
