The Enjin Coin (ENJ) has made massive gains in the past 24 hours, giving investors reason to buy ENJ.
The Enjin network is a social gaming platform through which users can create websites and clans, chat, and host virtual item stores. It is focused on making player-owned non-fungible tokens (NFTs).
This article ascertains whether the recent price surge of the token, coupled with the growing online gaming crypto industry, is enough to push investors to buy ENJ.
Enjin: Merging Cryptocurrency And Online Gaming
The Enjin Network is an ecosystem of interconnected, blockchain-based gaming products. It was first created as a community gaming platform in 2009 by Witek Radomski and Maxim Blagov.
Enjin later pivoted to a blockchain platform in 2017, following an Initial Coin Offering (ICO). Its mainnet was launched in 2018.
Enjin allows game developers to tokenize in-game items on the Ethereum blockchain. All transactions on Enjin are validated and secured by the Ethereum network using a proof-of-work (PoW) consensus algorithm.
Miners compete to add new blocks to the blockchain, and a majority of all nodes in the network must reach a consensus before a transaction is added to the blockchain.
The Enjin network is powered by its Enjin Coin (ENJ), an ERC-20 token used to back the value of blockchain assets. Items issued on the Enjin ecosystem can be bought, sold, and traded with real-world value.
Q1 saw over $2 billion in NFT sales, a 2,100% increase from the previous quarter. 📈
Despite this explosion in growth, #NFTs has yet to see its full potential without a dedicated blockchain.
This changes with Efinity.
— Enjin (@enjin) June 18, 2021
Enjin Coin uses a series of smart contracts in which gamers or developers can send ENJ to mint new, fungible, or non-fungible ERC tokens.
These tokens can be traded on the Enjin NFT Marketplace or exchanged for the ENJ tokens at any time. As more custom tokens are minted and issued on the network, more ENJ tokens are removed from the ecosystem, thus making it scarcer.
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ENJ Price On A Bullish Trend
Investors might want to buy ENJ as the token is a good investment right now, especially because of the crypto market’s bullish trend.
ENJ started the year trading at a meager $0.136 before surging to an all-time high (ATH) of $3.454 on April 9th.
However, the asset soon plunged to $2.029 by the end of April and further to $0.953 on May 23rd.
Currently, the ENJ token is now making a recovery as it is up 18.35% in the last 24 hours and is trading at $1.33, according to Coinmarketcap.
ENJ’s Technical And Fundamental Analysis
Investors who know the yield potential of gaming cryptos like Enjin want to buy ENJ.
The digital asset also has strong technicals on the trading chart.
ENJ is currently trading above its 20-day moving average (MA) support, which is pegged at $1.098. However, the 200-day MA has a strong bullish trend at $1.474.
The cryptocurrency’s relative strength index (RSI) on the charts is at 47.75. This is considered a neutral zone in the RSI, so now might be the time to buy ENJ.
In terms of fundamentals, Enjin has been making strategic moves. A few days ago, the platform announced that it had become the first NFT firm to be accepted into the UN Global Compact.
The firm joins the Global Compact as a Participant, the highest membership rank.
With this, Enjin would use non-fungible tokens to promote the UN’s sustainability and equality aims. The platform is also a part of the Crypto Climate Accord, a group aimed at making the cryptocurrency industry run entirely on renewable energy by the year 2025.
Enjin also recently signed a deal with Drops, a platform that provides NFT and DeFi assets loans. The partnership would allow Drop users to borrow a range of Ethereum-based assets and stablecoins without selling their NFTs.