Why has Enjin price rallied 800% over the last month? Here are 3 reasons

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New partnerships, the increasing popularity of NFT art and the upcoming launch of JumpNet are just a few reasons why Enjin has rallied more than 800%.

Nonfungible tokens (NFTs) have taken the world by storm as stories of record-breaking digital art sales now appear on news outlets and popular culture. 

One project that has been well-positioned for years to capitalize on this crazy trend is Enjin Coin (ENJ), whose co-founder Witek Radomski was also involved in the development of the ERC-1155 token standard, which made the creation of NFTs on the Ethereum (ETH) network possible.

Data from Cointelegraph Markets and TradingView shows that the price of ENJ has increased by 800% in the past month, going from a low of $0.34 on Feb. 23 to a new ATH of $3.09 on March 15 thanks to a continuous rise in trading volume.

Three reasons for the explosive rally for Enjin can be the announcement of its Ethereum scaling solution JumpNet, increased exposure and trading volumes due to multiple exchange listings and the continued growth of NFT.

Cheaper fees for NFT transactions

Enjin really began in early March after the project revealed JumpNet, which is a private version of the Ethereum blockchain that uses a Proof of Authority (PoA) consensus mechanism to enable instant, gas-free on-chain transactions.

High transaction costs have been one of the main challenges facing the crypto community over the past months thanks to increased use of the Ethereum network by decentralized finance (DeFi) protocols and the growing popularity of NFTs.

JumpNet, which is scheduled to launch on April 6, plans to solve this issue for the NFT sector by enabling users to send and receive Enjin Coin and ERC-1155 tokens for free as well as mint, trade and distribute ERC-1155 tokens at no cost.

Enjin also has plans to integrate Efinity, a decentralized blockchain for NFT’s that “will support next-generation token features and assets from any blockchain.” According to its team, this can help enable multi-chain interoperability and allows NFT holders on any blockchain to move over to JumpNet and benefit from free transactions.

Exchange listings help expand Enjin’s userbase

A second driver of ENJ price has been its listing on several cryptocurrency exchanges. This pushed total trading volumes to new highs and also led to a spike in on-chain activity and active addresses.

The exchange listings started in late February when ENJ trading pairs were added to Crypto.com and FTX, helping to initiate the price rally.

Other important integrations that happened in March include being voted into Bancor’s (BNT) liquidity mining and being listed on Huobi Global, OKEx and Gemini exchange.

The NFT craze boosts Enjin’s ecosystem growth

Another reason why Enjin price rallied in March is related to the overall growth in popularity of NFTs as they mainstream in art circles and in the business sector. This has had a knock-on effect on the number of new partnerships the project has been able to establish and brought more attention to the project. 

Some of the recent gaming additions to the Enjin ecosystem are Age of Rust, The Six Dragons, Ludena Protocol, and South Korea’s gaming-focused social app GameTalkTalk.

VORTECS™ data from Cointelegraph Markets Pro started to detect a bullish outlook for ENJ on Feb. 28, prior to the price rally in March.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

The VORTECS™ Score for ENJ hit a high of 67 just hours before the price started to rally over the next three weeks.

After falling to a low of 31 on March 3, the VORTECS™ Score again turned upward as the price of ENJ rose to a peak at 89 on March 10, which is five days before Enjin established a new all-time high a $3.09.

Mainstream adoption of NFTs and the promise of creating a fee-free environment that supports NFTs from a variety of blockchains has Enjin well positioned to see further growth during the current bullish market.

As the concept of tokenization spreads beyond art to areas such as real estate and historical documents, projects that offer a user-friendly NFT ecosystem could finally become centerpieces of the rapidly developing digital asset industry.

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