Nonfungible tokens (NFTs) have taken the world by storm as reports of record breaking digital art sales regularly appear in mainstream news outlets and popular culture.
One project that has been well positioned to capitalize on this growing trend for years is Enjin Coin (ENJ), whose co-founder Witek Radomski was also involved in the development of the token standard ERC-1155, which made the creation of NFTs possible Ethereum (ETH) network.
Data from Cointelegraph Markets and TradingView show that the price of ENJ rose 800% over the past month, from a low of $ 0.34 on February 23 to a new all-time high of $ 3.09 on March 15 thanks to a continuous Increased trade volume.
Three reasons for Enjin’s explosive growth are the announcement of the Ethereum scaling solution JumpNet, increased exposure and trading volume due to multiple listings, and the continued growth of the NFT sector.
Lower fees for NFT transactions
Momentum for Enjin really picked up in early March after the project revealed JumpNet, a private version of the Ethereum blockchain that uses a Proof of Authority (PoA) consensus mechanism to enable instant, gas-free transactions on the chain.
High transaction costs have been one of the biggest challenges facing the cryptocurrency community over the past six months as the Ethereum network has been increasingly used by DeFi (decentralized finance) protocols and NFTs have become increasingly popular.
JumpNet, slated to launch on April 6, aims to solve this problem for the NFT sector by allowing users to send and receive Enjin Coin and ERC-1155 tokens for free, as well as ERC-1155 tokens at no cost.
Enjin also has future plans to integrate Efinity, a decentralized blockchain for NFTs that will “support token functions and next-generation assets from any blockchain”. According to the team, this will help enable multiple chains to interoperate and allow NFT owners of any blockchain to move to JumpNet and benefit from free transactions.
Exchange listings help expand Enjin’s user base
A second driver of ENJ price was its listing on a number of cryptocurrency exchanges. This brought the total trading volume to new highs and also led to an increase in chain activity and active addresses.
Listings began in late February when ENJ trading pairs were added to Crypto.com and FTX to kick off the price rally.
Other notable integrations that took place in March included the vote on Bancor’s (BNT) deletion and listing on the Huobi Global, OKEx and Gemini exchanges.
The NFT craze is fueling the growth of Enjin’s ecosystem
The third reason the ENJ price went parabolic in March has to do with the general surge in popularity of NFTs establishing themselves in the arts and corporate sectors. This has had a negative impact on the number of new partnerships the project has been able to build and has given the project much more attention.
Recent game additions to the Enjin ecosystem include Age of Rust, The Six Dragons, the Ludena Protocol, and South Korea’s game-oriented social app GameTalkTalk.
Cointelegraph Markets Pro’s VORTECS ™ data began to see an bullish outlook for ENJ on February 28, ahead of the March price rally.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graphic above, the VORTECS ™ Score for ENJ rose into the green and reached a high of 67 just hours before the price increase in the next three weeks.
After falling to a low of 31 on March 3, the VORTECS ™ Score rose again when the price of ENJ climbed to a high of 89 on March 10, five days before Enjin hit a new all-time high of $ 3.09 established.
The widespread adoption of non-fungible tokens and the promise to create a toll-free environment that would support NFTs from a wide variety of blockchains have positioned Enjin well to see further growth during the current bull market.
As the concept of tokenization expands beyond art to areas such as real estate and historical documents, projects that offer a user-friendly NFT ecosystem could eventually become core pieces of the rapidly evolving digital asset industry.
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