Render Network: Capturing the AI Boom

$RNDR Rises Ahead of NVIDIA Earnings

November 21, 2023

TLDR:

  • The Render Network, powered by $RNDR, thrives on the symbiotic relationship with AI's rapid growth.

  • Positioned in decentralized cloud rendering, Render Network taps into the booming metaverse demand.

  • Key team members, like Jules Urbach and JJ Abrams, reinforce Render Network's industry leadership.

  • The result of NVIDIA’s earnings will have a major impact on $RNDR in the short term.

  • We are bullish on Render Network's growth trajectory in the long term, with integrations such as Redshift, IO and Cinema4D.

This research report delves into the intricate interplay between the rapid advancement of artificial intelligence (AI) and the consequential expansion of the Render Network. The burgeoning landscape of AI technologies has notably escalated the demand for high-performance computing resources, creating an opportune environment for the Render Network and its native token, $RNDR.

What is the Render Network?

Render establishes itself as a distinctive entity within the cryptocurrency realm by operating in the specialized domain of decentralized cloud rendering — an industry with profound growth potential. As emerging technologies such as the metaverse, augmented reality (AR), and virtual reality (VR) gain widespread traction, the demand for rendering services is poised to experience a significant upswing. The Render Network strategically positions itself to address this escalating demand by providing a distributed rendering infrastructure.

In laying the groundwork for our exploration of the Render Network, it is imperative to understand the pre-eminence of OTOY, a pivotal player in the rendering domain, in order to gain insights into $RNDR. OTOY has long stood as the epitome of rendering excellence, pioneering cloud rendering and immersive media creation since 2002 — seven years before the mainstream emergence of Bitcoin and blockchain technologies. OTOY's dominance is manifest in their groundbreaking proprietary solution, Octane Render. While their foray into the blockchain and Web3 space is a more recent development, OTOY's formidable presence is underscored by notable achievements such as:

  • OctaneX launching on Apple's App Store

  • Contribution to HBO's Last of Us opening scene

  • Remastered 4k rendering of Star-Trek

OTOY, who is already rendering App support on the latest iPads and Macs, is the parent company of Render.

Team

Jules Urbach

  • Founder and Visionary

    • Jules Urbach serves as the visionary force behind $RNDR and OTOY, having initiated disruptive advancements in the graphic media space.

  • Early Career Decision

    • Opting to forego the conventional path of obtaining a college degree, Urbach instead dedicated his time to revolutionizing the graphic media landscape.

  • Innovative Projects

    • Urbach spearheaded various projects focused on enhancing immersive video game experiences, showcasing a commitment to innovation.

  • Industry Impact

    • His software solutions gained recognition and were licensed to industry giants such as Microsoft, Disney, Warner Bros, and others.

  • Customer and Industry Support

    • Notably, these entities have not only licensed his solutions but have become dedicated customers and advocates for OTOY and Render Network.

  • Visionary Status

    • Regarded by many as a visionary akin to Elon Musk in the rendering space, Urbach has consistently demonstrated groundbreaking work since 2022.

Ariel Emmanuel

  • Sports and Entertainment Background

    • As the CEO of Endeavor, Ariel Emmanuel contributes a wealth of experience from the sports entertainment sector to the Render Network team.

  • Industry Transformation

    • Emmanuel leverages his extensive background to drive the transformation of the industry through $RNDR-based solutions.

JJ Abrams

  • CEO & Chairman

    • JJ Abrams, the driving force behind Bad Robot Productions, brings his core role in filmmaking for major Hollywood titles such as Lost, Star Trek, Star Wars, and Mission Impossible to Render Network.

  • Filmmaking Expertise

    • With a profound impact on the filmmaking industry, Abrams' expertise seamlessly integrates into the goals of Render Network.

Mike Winklemann (Beeple)

  • Core Member of $RNDR

    • Known by his alias Beeple, Mike Winklemann is not only a core member of $RNDR but also one of its most prominent clients.

  • Core Advisor

    • Beyond his role as a client, Beeple serves as a core advisor to $RNDR, contributing to the development and success of the platform.

  • NFT Artwork Rendering

    • Many of Beeple's acclaimed NFT artworks undergo professional-grade rendering by $RNDR and OTOY, highlighting the platform's role in supporting and showcasing cutting-edge digital art.

Each member of the Render Network team brings a unique set of skills, experiences, and industry connections, collectively reinforcing the platform's position at the forefront of the media sector's evolution.

Tokenomics

The $RNDR token serves as the primary driver of utility within the Render Network ecosystem. In essence, artists utilize $RNDR to compensate GPU nodes for the successful completion of rendering tasks. The process of accessing GPU rendering unfolds through the following steps:

1. Users initiate a request for GPU rendering services.

2. The system matches the request with available idle GPUs.

3. The identified GPU renders the specified file.

4. Users make a payment of $RNDR tokens to the GPU as compensation for the rendering services provided.

Advantages of the Render Network

Integration with Major Tech Ecosystems

Render Network's strategic positioning within major technology ecosystems, such as Apple and OpenAI, underscores its relevance in the dynamic tech landscape.

The network's potential integrations within these ecosystems signify a collaborative approach towards advancing technologies in the Metaverse and AI domains.

By aligning with key players, Render Network positions itself as a pivotal contributor to the ongoing evolution of these cutting-edge technologies.

Cost Efficiency

One of Render Network's key strengths lies in its ability to deliver rendering services at a significantly reduced cost compared to traditional visual effects companies.

The platform enables users to harness idle computational resources globally, resulting in a more cost-effective solution for rendering.

This approach not only offers competitive pricing for users but also maximizes the efficiency of Graphics Processing Units (GPUs), making high-quality rendering more accessible to a broader audience.

Speed and Scalability

Render Network's distributed architecture contributes to its capability to provide some of the fastest rendering services in the industry.

The decentralized nature of the network not only enhances rendering speed but also addresses the challenges of scalability more effectively than traditional technologies.

This scalability, coupled with improved compatibility, positions Render Network as a versatile solution suitable for a diverse range of applications across industries.

Competitive Edge

Render Network faces competition from projects like $GLM (Golem) and $AKT (Akash Network).

However, Render's distinctive focus on GPU-based rendering grants it a unique competitive edge, particularly in response to the growing demand for high-quality rendering in various sectors.

By specializing in GPU-centric rendering services, Render Network caters to a specific niche, allowing it to offer unparalleled performance and efficiency compared to more generalized competitors. This targeted approach positions Render Network as a leader in the GPU rendering space, fostering its growth and sustainability in a competitive market.

Catalysts

The Render Network is poised for significant growth and development with several key catalysts on the horizon. These catalysts, ranging from strategic partnerships to technological advancements, are anticipated to propel the Render Network into new heights.

  1. NVIDIA Earnings Report: NVIDIA Corporation, a pivotal player in AI infrastructure, is set to release its latest quarterly earnings results. With a market capitalization exceeding a trillion dollars, NVIDIA's performance is closely watched. As of now, NVIDIA shares have surged by an impressive 244.94% Year-to-Date (YTD) to $504.09 per share. The outcome of the earnings report will likely influence investor sentiment and may have a cascading effect on the broader AI ecosystem, potentially impacting Render Network's trajectory.

  2. Migration to Solana: The Render Network has embarked on a migration to Solana, a high-performance blockchain. The introduction of $RENDER, a new Solana SPL token, signifies a move towards enhanced speed and cost efficiency. This migration is expected to unlock new features, including real-time streaming OPOS. To incentivize early migration, additional $RENDER has been allocated as rewards, creating an opportunity for users to capitalize on the advantages of the Solana ecosystem.

  4. Cinema4D Uploads Integration: Render Network has integrated support for Cinema4D (C4D), a widely used 3D package. This integration, lauded by industry experts like Jules Urbach, is expected to attract a diverse range of artists. The compatibility with C4D is projected to unlock a 10x increase in user base, emphasizing the expanding utility and relevance of $RENDER within the creative community.

  5. IO Cloud Beta Launch: Render Network introduces IO, its first compute client partner. IO, currently in beta, allows users flexible and scalable access to GPU resources. In the initial 24 hours, over 200 users entered the IO Cloud, showcasing the demand for such services. IO is set to tap into the $RNDR GPU network to power AI applications, positioning itself as a vital component in Render Network's ecosystem.

    New Job Types Fuelling Recent Growth

  6. Impressive Month-on-Month Growth: Render Network has witnessed a remarkable 75% Month-on-Month (MoM) growth in disbursed $RNDR tokens. This growth is attributed to the introduction of new job types on the $RNDR Network, indicating a growing demand for rendering services even before the full launch of IO and Beam.

  7. Redshift Beta Integration: Redshift, an award-winning GPU renderer, is now in beta and is the first major render engine outside of OTOY's Octane to support $RENDER. This integration widens the scope of $RNDR user expansion, providing users with more options and flexibility in utilizing rendering resources.

These catalysts collectively underscore Render Network's commitment to innovation, strategic partnerships, and user-centric development, positioning it for sustained growth in the dynamic landscape of decentralized rendering and AI infrastructure.

$RNDR Price Action

$RNDR Price Action

In the short term, the price action of $RNDR heavily depends on the NVIDIA earnings released later today. NVIDIA has given guidance of $16 billion for the previous quarter, with Wall Street pricing in $16.1 billion, so they are leaning to the upside. Wall Street are also leaning to the upside on margin, anticipating 72.4% margin vs the guide of 71.5%-72.5%. NVIDIA is priced optimistically at the moment, so there is greater risk to the downside than the upside following the result of the earnings call. The biggest risk outside of missing these estimates is what they say about supply. In order for NVIDIA to keep up their momentum, they need supply to remain on track in the following quarters. $3.26 will be a key price level for $RNDR to hold if it is to continue its upward trend in the following days.

Despite this potential headwind and a potential miss on earnings, we are bullish on the long term growth of the picks and shovels in AI infrastructure like NVIDIA, and Render Network, and believe that AI cryptocurrencies will be a major narrative in 2024.

Wrapping up….

In anticipation of the escalating demand for rendering services driven by the increasing popularity of metaverse, AR, and VR technologies, Render Network stands out as a pivotal player, offering a distributed rendering infrastructure to address this surge. Looking forward, Render Network is poised for substantial growth, supported by pivotal catalysts on the horizon. These include strategic partnerships, technological advancements, the transition to Solana, the introduction of Burn Mint Equilibrium (BME), integration with Cinema4D, the beta launch of IO Cloud, beta integration with Redshift, and noteworthy month-on-month growth.

These catalysts not only highlight Render Network's dedication to innovation but also emphasize its strategic collaborations and user-centric development, positioning the platform for sustained growth within the rendering and AI infrastructure landscape.