Enjin Coin is one of the best performers on Crypto.com today, registering a 12% gain in the last 24 hours. Let’s take a closer look at what Enjin Coin (ENJ) is and why the price is going up.
What is Enjin Coin?
Founded in 2009, ENJ is the ERC20 token backing the Enjin platform, whose goal is: “to make it easier for individuals, businesses and brands to use non-forgeable tokens (NFTs)”.
In addition, ENJ is used to support the value of NFTs minted on the Enjin platform.Enjin is currently focused on the NFT side of things, as anyone can now buy, sell and trade NFTs on the platform.Our goal is to make NFTs accessible to anyone and make it easy for everyone to participate in the NFT ecosystem.
Why is the price of Enjin rising?
Enjin’s latest announcement is related to the $100 million Metaverse fund.
Enjin said, “Today, we formalized our approach to building the cross-chain #Metaverse and our NFT ecosystem in a more systematic way.”
Amidst all the media hype surrounding Facebook’s name change to Metaverse, Enjin believes that the Metaverse should be decentralized. That’s why they’ve built Efinity, a next-generation blockchain for NFT.
The Efinity Metaverse Fund is designed to help developers working on the Metaverse, games, NFTs, dApps, and a host of other projects integrate into Enjin’s decentralized ecosystem.
The Enjin team will look to invest in projects with the potential for adoption on their own platform.
The allocation of $100 million to support developers working on their platform is huge news for the Enjin community. It’s no surprise that Enjin’s price has gone up in response to the newly created fund.
Enjin Coin Price and Token Economics
With a total market cap of $2.85 billion, Enjin is one of the 61 largest cryptocurrencies on the market.
Looking at the 1-year chart, we can see that Enjin’s previous all-time high was in May. This is an extremely critical point in the Enjin market as the current price of $3.42 is a new all-time high for ENJ.
If ENJ can hold support at this level and continue to trade sideways, this would be a good sign that Enjin is ready to take off. However, if the current price falls below $3.30, we could see bearish momentum in the near term.
All in all, Enjin is a highly reputable program since 2009 and even if you lose in the short term, the long term outlook for ENJ is very positive.