Non-mushroom symbols (NFT) have taken the world by storm as record-breaking sales articles about digital art now appear regularly in major news stores and pop culture.
One project that has been well positioned to take advantage of this growing trend over the years is Enjin Coin (ENJ), co-founder of Vitek Radomski, which is also co-founder of the ERC-1155 token standard, which enabled the establishment of NFTs on Ethereum ( ETH) network.
Data from Cointelegraph Markets and TradingView show that the ENJ price has risen 800% in the last month, rising from $ 0.34 on February 23 to a record high of $ 3.09 on March 15, driven by a steady increase in trading volume.
Three reasons for Enjin’s explosive growth include the announcement of JumpNet’s decision to expand Ethereum, increased exposure and trading volume due to more IPOs and continued growth in the NFT sector.
Lower fees for NFT transactions
The momentum for Enjin really began to gain momentum in early March after the project introduced JumpNet, a special version of the Ethereum blockchain that uses the Proof of Authority (PoA) consensus mechanism to allow real-time transactions in the gas-free chain.
The increase in transaction costs has been one of the biggest challenges facing the cryptocurrency community in the last six months, thanks to the increased use of the Ethereum network through Decentralized Finance (DeFi) protocols and the increasing popularity of NFTs.
JumpNet, scheduled for launch on April 6, aims to address this issue for the NFT sector by allowing users to send and receive Enjin Coin and ERC-1155 tokens for free, and to issue, exchange and distribute ERC-1155 tokens for free.
Enjin also plans for the future to integrate Efinity, an NFT decentralized blockchain that “will support the features and assets of a next-generation token of any blockchain.” According to the team, this will help ensure the interoperability of multiple chains, and will allow NFT holders in any blockchain to go to JumpNet and take advantage of free transactions.
Exchange Lists Help Extending the Engine User Base
The other driver of ENJ inflation was the listing on a number of cryptocurrency exchanges. This pushed the overall trading volumes to new heights and also led to an increase in activity in the active chain and the headlines.
Number of active headers with ENJ. Source: Glassnode
The listing began in late February, when ENJ trading pairs were added to Crypto.com and FTX, which helped kick-start price increases.
Other notable mergers in March include voting in Bancor Liquidity Mining (BNT) and listing on Huobi Global, OKEx and Gemini.
NFT Madness drives Engine ecosystem growth
The third reason for the parabolic fall in ENJ prices in March has to do with the general increase in popularity of NFTs, as they are so widespread in the technology society and in business. This indirectly affected the number of new partnerships that the project was able to establish and increased interest in the project.
Some of the recent game additions to the Enjin ecosystem include Age of Rust, The Six Dragons, Ludena Protocol and GameTalkTalk, a South Korean social game focusing on games.
VORTECS ™ data from Cointelegraph Markets Pro began to provide optimistic prospects for ENJ on 28 February before the March price rally.
Exclusive to Cointelegraph, VORTECS ™ is a mathematical comparison of historical and current market conditions derived from a number of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As shown in the chart above, the VORTECS J ENJ result rose to green and peaked just 67 hours before the price began to rally over the next three weeks.
After falling to March 31, the VORTECS var result was higher again when ENJ reached the top 89 on March 10, five days before Enjin set a new full-time high of $ 3.09.
The prevailing proliferation of non-fungal tokens and the promise of creating a duty-free environment that supports NFT from various blockages, gives Enjin a good position to see further gains in the current bull market.
As the concept of coding has spread far beyond the arts, including areas such as real estate and historical documents, projects that provide a user-friendly ecosystem for NFTs can eventually become the center of a thriving digital real estate industry.