Saturday, 3 June 2023

Crypto News

Ronin (RON) bags a 500% gain as the gaming-focused project approaches a major upgrade

Ronin (RON) bags a 500% gain as the gaming-focused project approaches a major upgrade

Ronin Network’s native token RON recorded 5x gains since the start of the year thanks to its plans to shift to a Delegated Proof-of-Stake (DPoS) consensus mechanism and expand its gaming portfolio beyond Axie Infinity.

The gaming-focused layer-2 Ethereum blockchain will change its current Proof-of-Authority to the DPoS consensus mechanism on April 12.

The previous mechanism had around six to nine participants securing and validating transactions on the network, which put the network at a centralization risk. It was the leading cause of the $650 million hack from the Ronin network on March 29, 2022.

The new DPoS consensus mechanism allows RON stakers to earn from the network’s fees and vote on the set of validators operating the network.

Additionally, Sky Mavis, the team behind Axie Infinity and the Ronin Network, is also working on expanding the gaming portfolio of the Ronin Network. On March 30, they announced that four new gaming studios are building on the Ronin Network, including Tribes Studio, Bali Games, Directive Games and

The team also launched a developer portal to attract blockchain game designers to its platform. Sky Mavis aims to become the launchpad for Web3 games, competing with the likes of Immutable and Avalanche subnets.

The team announced the Ronin upgrade to a delegated proof-of-stake (DPoS) consensus algorithm on August 30, 2021. They rolled out the first testnet of the DPoS chain in January 2023.

30% of the RON’s circulating supply is currently committed toward staking. This is encouraging as the staked tokens are less likely to be sold.

Does RON have room for further upside?

RON price suffered significantly after the hack in March 2022 as its price declined around 90% from $2.10 to lows of $0.22 in a couple of weeks after the attack. Since then, RON has traded below $0.50 throughout the rest of 2022 before surging up almost a year after the incident.

The Ronin team deployed the DPoS consensus mechanism on the network’s testnet on January 5, grabbing the market’s attention which was evident in its price rise. RON token also benefited from its listing on the MEXC exchange on February 7.

RON price and volume. Source: Nansen

RON also faces dilution risk due to an upcoming token unlock of 4.15% of its total supply going toward the Sky Mavis team and ecosystem funds on April 27.

Technically, buyers have the upper hand as the RON/USD pair broke above the resistance from the February 2023 peak at around $1.01. As the resistance…

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