Enjin Coin has been one of the top performers on Crypto.com today, gaining 12% in the last 24 hours. Let’s take a closer look at Enjin Coin (ENJ) and why its price is increasing.
What Exactly Is Enjin Coin?
ENJ, which was founded in 2009, is the ERC20 token that powers the Enjin Platform. The Enjin Platform’s goal is to:
“simplify the use of non-fungible tokens (NFTs) by individuals, businesses, and brands.”
Furthermore, ENJ is used to support the value of NFTs issued on the Enjin platform. Enjin is currently focusing on the NFT side of things, as anyone on the platform can now buy, sell, and trade NFTs. The goal is to make NFT available to everyone and to make it simple for everyone to participate in the NFT ecosystem.
Why Is the Price of Enjin Increasing?
Enjin’s most recent announcement concerns the $100 million Metaverse Fund.
“Today, we formalize our approach to building out the cross-chain #Metaverse and our NFT ecosystem in a more systematic way,” Enjin explained.
🌌Announcing the $100M #Efinity Metaverse Fund🌌
At Enjin, we believe the Metaverse should be decentralized.
Today, we formalize our approach to building out the cross-chain #Metaverse and our NFT ecosystem in a more systematic way: https://t.co/GfCMao5sTn pic.twitter.com/Se4iViW04L
— Enjin (@enjin) November 4, 2021
Enjin believes that the Metaverse should be decentralized, despite the media hype surrounding Facebook’s rebranding as Metaverse. As a result, they created Efinity, a next-generation blockchain for NFTs.
The Efinity Metaverse fund aims to assist developers working on metaverse, gaming, NFTs, dApps, and a variety of other projects in integrating their projects into the Enjin decentralized ecosystem.
The Enjin team will look for projects to invest in and possibly adopt on their own platform.
Spending more than $100 million to support developers working on their platform is a significant announcement for the Enjin community. It’s not surprising that Enjin’s price has risen in response to the newly established fund.
Tokenomics and the Enjin Coin Price
Enjin has a total market cap of $2.85B, ranking it among the top 61 largest cryptocurrencies.
Enjin’s previous all-time high was in May, according to the one-year chart. This is a critical juncture in Enjin’s market, as the current price of $3.42 represents a new all-time high for ENJ.
If ENJ can maintain support at this level and trade sideways, it will be a sign that Enjine is ready for takeoff. However, if the current price falls below $3.3, we may see a short-term bearish trend.
Overall, Enjin is a highly reputable project that has been in operation since 2009. Even if you lose in the short term, ENJ’s long-term outlook is extremely positive.
