RON Surges as $4.6M Ronin Treasury Buyback Program Set to Launch This Week
Gaming blockchain Ronin's strategic move to reduce supply by 1.3% sparks bullish sentiment in Ronin (RON) amid Ethereum Layer-2 transition
Quick overview
- Ronin (RON) has seen a price increase of 1.5%, trading above $0.50 ahead of a $4.6 million treasury buyback program starting September 29.
- The buyback strategy aims to create deflationary pressure on RON and demonstrates long-term commitment from the Ronin Treasury.
- Technical analysis indicates potential for further price recovery, with key resistance levels at $0.57-$0.58 and $0.60.
- Ronin's transition to an Ethereum Layer-2 solution and recent upgrades may attract new users and developers, fostering optimism for future growth.
Ronin (RON), the native token of the blockchain network underpinning Axie Infinity, is gaining ground as it trades beyond $0.50. In the previous 24 hours, it has gone up 1.5%. The price movement comes before a big treasury buyback program that starts on September 29. This has gotten the attention of both gamers and crypto investors.
Ronin Treasury Buyback Strategy Signals Long-Term Commitment
The Ronin Treasury has announced plans to carry out a full $4.6 million RON buyback operation, which will take around a month and will turn all of its Ethereum ETH/USD and USDC holdings into RON tokens. The treasury now has 896 Wrapped Ethereum (WETH) worth around $3.9 million and 652,000 USDC. This is a large amount of money that has built up over the years from trading fees on the Katana DEX, Ronin Market, and Ronin Name Service.
This buyback is for about 1.3% of RON’s current circulating quantity of 693 million tokens, which is part of a total supply of 1 billion. The strategic approach is meant to put deflationary pressure on the coin and show that the company believes the network will do well in the future. The treasury has promised to keep these bought tokens forever, which means there won’t be any quick selling pressure.
RON/USD Technical Analysis Points to Potential Breakout
From a technical point of view, RON is looking good for a recovery after finding support around the $0.47–$0.48 level. The coin has successfully recaptured important moving averages, trading above the 50-EMA ($0.505) and 100-EMA ($0.504), which had been acting as resistance all through September.
The price action over the past few days shows a pattern of higher lows, which is backed up by a rise in trading volume that surpassed $29 million in recent sessions. After hitting an intraday high of $0.56 after the buyback announcement, RON has stayed above the $0.52-$0.53 support zone. This consolidation above important technical levels means that the price may go up even more.
The first level of resistance to watch is $0.57-$0.58, and the next one is $0.60, which is a psychological level. A successful break above these levels could mean that a bigger recovery rally is about to start.
Ronin’s Ethereum Layer-2 Transition Creates New Growth Catalysts
Ronin’s decision to become an Ethereum Layer-2 solution is a big step forward for the gaming blockchain. The network started out as a sidechain in 2021 to make transactions for Axie Infinity faster and cheaper. Now, it is getting ready to take advantage of the growth of the Ethereum ecosystem as a whole.
This “homecoming” to Ethereum comes at a time when more and more businesses are using it. The team said, “Wall Street is jumping into our industry.” The change is designed to make the platform more compatible with other systems and bring in new users and developers.
The “Cerastes” upgrade added EIP-1559-style gas mechanics to the network, making it a dual deflationary mechanism. This method burns some of the transaction fees and sends the rest to the treasury. It might bring in up to 3 million RON a year, which is around 0.3% of the entire supply.
Ronin Price Prediction: Cautious Optimism Amid Recovery Signals
Even while things are getting better, RON is still much below its all-time high of $4.45 in March 2024, trading down more than 88% from that top. The token has had a tough time since the network was hacked for $600 million in March 2022. The entire value locked has dropped from $1.2 billion to roughly $56 million now.
But the combination of treasury buybacks, fee-burning mechanisms, and the Ethereum Layer-2 transition gives rise to many reasons why things could get better. If RON stays above $0.52 and the buyback program goes as anticipated, it looks like it could climb toward $0.60-$0.65 in the near future.
The network’s capacity to bring in new gaming ventures and reestablish user trust will be a big part of how well this comeback goes. The timing of this buyback campaign could be smart because Web3 gaming is getting more popular again and Ronin’s infrastructure is getting better.
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